President Dr. Mohamed lied about confiscating lands given to foreign companies in return for reclaiming land in the Male' region and terminating contracts with such companies, Adhadhu can confirm.
Muizzu made the announcement during a lengthy press conference at the President's Office on May 3. He stated twice during the press conference that agreements which gave land have been terminated.
"This is about 12 hectares in exchange for the reclamation of land in Hulhumale' and Thilafushi by a foreign company. I said earlier this morning that this government has now cancelled all such agreements," he said.
The foreign company referred to by Muizzu was Capital Marine and Construction (CMC). The company was contracted to reclaim land in Thilafushi, Dhiyaneru lagoon and Hulhumale' Phase 3.
In return, the company will get land in Thilafushi and Hulhumale' Phase 3. The 99-year agreement allowed the company to earn revenue by leasing the land or developing buildings on the land. The agreements were signed on August 20, 2023.
Although Muizzu declared that these agreements had been terminated, reliable sources confirmed to Adhadhu that this was not true.
The only agreement cancelled so far is the one signed by this government to reclaim Fushi Dhiggaru lagoon or Rasmale'. Under the terms of contract termination, the government has to pay USD 21 million to CMC for the Site J reclaimed in Rasmale'.
Housing Development Corporation (HDC) first awarded the Rasmale' project to CMC to reclaim 1153 hectares of land in the Fushi Dhiggaru lagoon. The company was contracted to begin work in December 2023 and conclude the reclamation within eight months.
In return, CMC was promised development rights for 99 years from 10 hectares of land in Hulhumale' and 60 hectares of land in Fushi Dhiggaru lagoon. The government claimed the project would be implemented without any funding from the state budget or the HDC budget.
No other agreements have been cancelled so far. CMC has also expressed concern over Muizzu's announcement and has asked HDC to clarify whether the agreements were terminated. However, HDC and CMC could not be reached for comment.
Most of the areas, except Dhiyaneru lagoon, have been reclaimed by CMC. However, the reclamation work of Hulhumale' Phase 3 and Giraavalhu lagoon has been suspended for more than a year due to pending decisions on the agreements.
Hulhumale' Phase 3 and Giraavalhu lagoon reclamation is targeted to provide housing for natives of Male'. Muizzu announced the termination of the contract at the press conference when questioned about the updates on the housing for Male' natives and the relocation of the oil storage facility in Funadhoo.
