Sidibari
The Football Association of the Maldives has filed a formal request to retrieve the 230,000 square-foot plot of land in Hulhumale’.
In a press release shared this morning, the normalization committee states that the FA has requested the authorities to restore the original head lease, which was signed in 2018 between FAM and HDC for a 25-year period.
The initial lease had been revoked by HDC after FAM failed to pay rent for a significant duration.
The plot was provided for the primary purpose of developing football, but FAM was later permitted to sublet up to 28,000 square feet in order to generate revenue.
The FA had however, sublet almost the double the area, with multiple discrepencies in the sub-lease agreements.
According to the findings of the normalization committee, around fifteen agreements were made with third-parties. The committee highlighted the fact that the agreements were made in a manner the FA could not profit from.
The committee points out the following discrepancies in subletting the plots:
a) The sub-leasing was carried out without announcement and without a bidding process.
b) Some plots were sublet for 25 years, while others exceeded the period of the head lease.
c) The plot was leased to FAM on a rate of MVR 10/- per square feet, but the plots were sublet for an average of MVR 3/- per square feet.
d) FAM had rented out almost twice the land area permitted to sublease, which was 28,000 square feet.
e) Rent collected in bulk, in advance, and in cash. Although documents indicate that the money was collected, records show that large amounts of the rent never entered FAM’s bank accounts.
f) Long grace period to pay rent under subletting agreements, although FAM was given no grace period in its head lease agreement.
g) The agreements were made so as the FAM will pay a heavy price in lieu should the subletting agreements be dissolved.
As the normalization committee’s mandate is set to run out by next Thursday, the upcoming EXCO will be tasked with resolving the issues and, ideally, reclaiming the land.
“Given the rate of increase in population within the Greater Male’ area, losing a land plot like this, which was intended for the betterment of football, is a big concern of the Normalization Committee, given that it is a grave loss to Maldivian football” stated the committee in its press release.
