President Mohamed Muizzu has decided to offer MVR 100,000 "special allowance" for people who live in Sinamalé and Malé Hiyaa flats after failing to fulfil his promise of finding a permanent solution to renovate the buildings.

This was announced during Muizzu's meeting with residents of Sinamalé and Malé Hiyaa flats in Galolhu district of Male' yesterday (February 16) at Mulee’aage, the President's official residence.

Moosa Ali Jaleel, the ruling People's National Congress (PNC) candidate for Male' Mayor in the April 4 local council elections, participated in the event. Deputy Mayor Ahmed Areesh, who is seeking re-election, was also in attendance.

During the meeting, residents briefed Muizzu on their current living conditions and difficulties in paying outstanding rent and penalty charges. The residents had previously complained that the structure of the flats had deteriorated.

"In response, the President assured that a special allowance will be granted to residents of Sinamalé Flats 1, 2, 3 and 4, as well as Malé Hiyaa Flats 1 and 2. He further decreed that all penalties on outstanding rent be waived," the President's Office said.

The President's Office said a payment of MVR 100,000 will be provided to families residing in these flats, "taking into account the prolonged failure to address structural issues and deterioration of the buildings."

"Where the total outstanding amount exceeds MVR 100,000, the amount payable will be capped at MVR 100,000. If the outstanding amount is less than MVR 100,000, it will be fully waived and the remaining balance deposited into the resident’s account. Residents who have already settled the full payment for their flats will receive the full MVR 100,000 directly into their accounts," the President's Office added.

Muizzu made a presidential pledge to demolish the Sinamalé flats and construct new housing on the plot. During Muizzu's tenure as Male' Mayor, the city council announced in early 2023 that the flats would be demolished and redeveloped in two phases to build 1,500 housing units.

The city council had announced that it would seek investors under the developer finance model. However, the project did not begin.

The city council planned to build 700 housing units in five towers under the first phase. The second phase will include the construction of 800 units in five buildings.

However, more than two years after Muizzu assumed office, no practical work has been started and the condition of the flats is deteriorating day by day.

With the April 4 local council elections looming, there is room to assume that the announcement of such a huge expenditure from the state budget as "special allowance" would influence votes.

The government has not yet announced the total amount to be spent from the state budget for this "special allowance."

Meanwhile, the former government had decided that those who wanted to vacate their Sinamalé and Malé Hiyaa flats could apply for housing in the Binveriyaa (Land Owner) and Gedhoruveriyaa (House Owner) schemes.

However, it is not clear how many people received flats and land using the opportunity.