Addu City Mayor Ali Nizar has said that the decision to increase the size of some land plots leased for tourism purposes across the city was a move to facilitate active investors, driven by the need to develop the local tourism sector.
The issue was highlighted in the Addu City Council’s audit reports for 2022, 2023, and 2024, recently released by the Auditor General’s Office.
According to the audit, the Addu City Council increased the size of 11 plots leased in Feydhoo, Meedhoo, and Hithadhoo without a public bidding process. The head lease and development rights for some of these plots were transferred to third parties.
Responding to questions from Adhadhu, Mayor Nizar maintained that he does not believe there were any irregularities in these transactions.
Nizar explained that the tourism zones in Addu were established by the council through land-use plans, where plots were allocated and leased. He argued that modifying these plots falls within the council's legal jurisdiction and authority.
"The council is the only authority capable of adjusting land sizes, entering into agreements with lessees, or amending those contracts to accommodate their needs—such as providing additional space for a swimming pool. No other entity can perform these functions," Nizar said.
The audit report criticized the expansion of land without public announcement, stating that such actions deprive other interested parties of equal opportunities to lease land for tourism. It further alleged that the agreements were amended in a manner that favored some people.
However, Nizar said the council wanted to incentivize those who had already commenced work on their plots, in order to boost investment interest in Addu. He emphasized that these decisions were formally endorsed by the full council.
"We have been accommodating the requests of those who actually start work on their plots. Our priority was to ensure these projects get off the ground," Nizar said.
The audit reveals that the total additional land granted amounts to 166,340 square feet. This includes 104,381 square feet added to six plots in Feydhoo, 27,595 square feet to three plots in Meedhoo, and 3,800 square feet to two plots in Hithadhoo.
The Auditor General’s Office has instructed the council to establish a formal policy for transferring head leases. It also advised that such transfers should not alter the original responsibilities and benefits outlined in the agreements.
The Audit Office also requested the Minister of Finance to investigate whether any criminal offenses were committed, noting that the transfer of head leases on expanded plots may constitute an unauthorized act under the Public Finance Regulations.
