President Dr Mohamed Muizzu has dissolved the Settlement Committee, formed under the Guideline for Resolution of Disputes Relating to Agreements between the Government and Private Parties. The dissolution was announced via a press release issued by the President's Office.

According to the press release, the Attorney General had advised the President that the Guideline, which came into effect on November 28, 2022, had been implemented without statutory authority.

The Attorney General’s advice has emphasized that in addition to the absence of a legal authority, settlement of disputes and disbursement of funds without the involvement or consultation of the Attorney General's Office shall be deemed as a violation of Article 133(c) of the Constitution.

The press release further detailed instances where decisions made outside of the court were in contradiction of the Auditor General's assessment of the applicable compensation and disregard for the arguments raised by the Attorney General’s Office during court trials.

Prior to the decision to dissolve the Settlement Committee, decisions were made to compensate various parties to the value of MVR 225 million before November 17, 2023.

Also, the committee is estimated to have decided to grant MVR 1 billion worth of assets and funds as compensation to various parties.

President Muizzu said in a post via X that there should not be room to give illegal compensation by using people's money.