The Kaafu Huraa Island Council, now under the leadership of members from the ruling People’s National Congress (PNC), has withheld land plots previously allocated for tourism development.
These plots were leased by the preceding council. The land was awarded after the Anti-Corruption Commission (ACC) determined there were no irregularities in the allocation process. The case was submitted to the ACC by the island council itself to ensure transparency.
The previous council had auctioned 17 plots for tourism businesses through a competitive bidding process. Award letters had already been issued to the winning bidders. The reason for the current PNC-led council’s refusal to hand over the land remains unclear.
"Bids were invited for a total of 17 plots. The award letters were handed over to the successful bidders on May 2. The plots were to be officially handed over once approval was received from the Local Government Authority (LGA). However, the process has stalled," a source from Huraa told Adhadhu.
Before awarding the plots, the former council had requested an ACC investigation following rumors that the land was being leased below market value. However, after reviewing the case, the ACC concluded that no acts of corruption had occurred in the allocation process.
One of the individuals awarded a plot for tourism told Adhadhu that the new council members have been intentionally delaying the signing of the lease agreements since taking office, alleging that they are acting with ulterior motives.
"The council is acting very unfairly. These are not the same councillors who were there during the last term. The process had reached the point of signing, but now they are trying to prevent the land from being handed over. They have brought everything to a standstill," the person said.
The individual further noted that the delay is causing financial losses because the funds deposited as bank guarantees remain tied up. He warned that if the matter has to be settled in court, the damages would escalate.
"The potential loss here is immense. Major Maldivian companies submitted bids. The money we placed as bank guarantees is sitting idle and unusable. We haven't received the land. This is a huge loss, and going to court will only result in further damages," he added.
When contacted by Adhadhu, the President of the Huraa Island Council, Ihsan Jameel, decline to provide any information on the issue.
According to some residents, council members stated during a public meeting with the community that they would not hand over the plots to the successful bidders.
Another source familiar with the matter said that the previous council had followed all established procedures. He noted that if the new council wishes to block the handover, they would likely have to seek a legal resolution through the courts.
The previous council had secured MVR 1.8 million in bid acquisition fees from the 17 tourism plots. The land was leased under an agreement where the council would receive monthly rent as well as mandatory Corporate Social Responsibility (CSR) contributions.
