The Civil Court has issued a ruling requiring the Football Association of Maldives (FAM) to pay USD 3,382,000 (MVR 52.1 million) to T Kuing Construction, a South Korean company, in relation to a construction agreement.
Details of the Agreement
- The contract between T Kuing Construction and FAM was for the development of football grounds in ViliMale' and Hulhumale'.
- The amount due includes two invoices of USD 1,197,200 and USD 1,940,800, along with reconstruction costs in Hulhumale' totaling USD 122,000, and an additional USD 122,000 for work done after a change in company requirements.
- Despite granting FAM concessions at its request due to delayed payments, the Korean company claims that no payments have been made.
Legal Action and Court Ruling
- As a result, T Kuing Construction took the matter to the Civil Court to recover the outstanding funds.
- The company also sought compensation for losses amounting to USD 2,529,200, which included a monthly fee of USD 202,920 for the ten months following the issuance of a legal notice, as well as USD 500,000 for legal fees.
- However, the Civil Court ruled in absentia that FAM is only liable for the USD 3,382,000 tied to the work conducted, as the agreement, signed on March 20, 2021, does not cover claims for losses.
- FAM has been ordered to pay the sum within one month, starting from October 1, 2024.
Ongoing Issues with South Korean Companies
This ruling comes amid ongoing issues between FAM and South Korean companies. Prior to this agreement with T Kuing Construction, FAM had entered into a separate USD 17 million project with South Korea’s Skywind Global, which remains incomplete.
