Council says market land can't be handed over without legal requirements

The Malé City Council has said it cannot hand over land allocated for the redevelopment of the Malé Fish Market until legal requirements are met, alleging that the Ministry of Construction and Infrastructure has not provided documents required under the law.

The council made the remarks on Wednesday following repeated requests from the ministry to transfer the land for the proposed Malé Wet Market Complex project.

The current administration signed an agreement on 15 March 2026 with Trusteng Maldives Private Limited to develop the project at a reported cost of MVR 126.3 million.

The council noted that two earlier agreements relating to the development of the market remain in force. It also said it had been unable to verify the registration status of Trusteng Maldives Private Limited through the official business registry.

Speaking at a council meeting, Mayor Adam Azim said the Ministry of Construction and Infrastructure had repeatedly requested the immediate transfer of the land. He added that the Ministry of Fisheries and Ocean Resources had also submitted a similar request.

Azim said the ministries had not responded to correspondence from the council regarding the legal issues arising from the two existing agreements or to requests for information required before the land could be transferred.

He also said the Ministry of Fisheries had requested that management of the market be transferred to the ministry once construction is completed. However, Azim argued that the Decentralisation Act assigns responsibility for managing public markets to local councils.

According to the Mayor, ministry officials had indicated during a meeting that they would provide a response after consulting senior officials, but the council has yet to receive one.

"Therefore, we cannot act outside the boundaries of the law. No matter who demands it, we will not take any illegal actions here," Azim said.

The Mayor said the law requires the government to consult the city council before awarding such a project. He added that the consultation process includes providing project plans, information on the contractor's technical and financial capacity, a copy of the signed agreement and details of how the facility will be managed after completion.

Azim said the council had requested these documents on several occasions but had not received them.

He argued that these requirements are intended to prevent projects from being delayed because of procedural shortcomings, adding that previous audit reports had highlighted similar issues.

"If we hand over our land without verifying all these matters and receiving the details, the public will later accuse the council of acting irresponsibly," he said.

Addressing the two existing agreements, Azim said neither contract has been terminated.

According to the Mayor, one contractor has indicated a willingness to cancel its agreement. However, the contract allows the project to be financed through a third party, creating the possibility of legal action if the agreement is terminated.

He said the council had asked the contractor to provide written assurance that the third-party financier would not pursue legal action, but this has not been agreed.

Azim said the council wrote to the Ministry of Construction and Infrastructure on 18 June outlining these concerns but received no reply.

He also alleged that council representatives visited the ministry twice to discuss the matter after receiving no response to written correspondence, but were unable to meet Minister Dr Abdulla Muththalib.

The council has also sought assistance from the Local Government Authority (LGA) to facilitate discussions between the parties, but Azim said the authority has not responded.

"The council is making every effort to ensure the legal aspects of this matter are properly resolved," Azim said. "Malé City Council will not do anything to intentionally delay the progress of this market project."