Addu council says government control of land costs city MVR 10 million a month
He said the estimated annual loss exceeds MVR 115 million, which is more than the council's annual block grant from the state budget.
Addu City Council has claimed that more than 100 hectares of land within the city's jurisdiction remain under central government control, costing residents an estimated MVR 10 million in revenue each month.
The council made the remarks during a press conference on Wednesday at the Addu City Council Secretariat, where councillors expressed concern over what they described as government actions affecting the council's development plans.
Hussain Zareer, MDP councillor for Hithadhoo Rasgedhara constituency, said residents were unable to benefit economically from several uninhabited islands within the council's jurisdiction. According to him, eight of the 12 uninhabited islands in Addu have been taken over by the government for various purposes.
Zareer said the 42 hectares of reclaimed land in Addu had also been placed under central government control through an executive decision, with lease revenue collected by a government ministry.
He added that lease income from land allocated to Google is also collected by the central government, while revenue from the Hankede development area does not accrue to the council.
According to Zareer, around 20 hectares across three resort land areas in the Addu lagoon remain under government control. He also said that following the transfer of Savaahili island to central government administration, lease revenue generated from the island would no longer be received locally.
"So if you look at it this way, we want to make it clear to the residents of Addu that nearly 100 hectares of land in this small city of Addu remain trapped under various influences of the central government. It should be noted that over 100 hectares of land are under central government control, entirely out of the reach of Addu Council," Zareer said.
"As a result, Addu residents are losing approximately MVR 10 million per month. Based on our calculations—taking the lowest possible land value in Addu at a rate of MVR 1—Addu residents suffer a minimum loss of MVR 10 million every month."
He said the estimated annual loss exceeds MVR 115 million, which is more than the council's annual block grant from the state budget.
Zareer called on Members of Parliament representing Addu constituencies to work towards restoring what he described as revenue that should benefit the city's residents.
Mayor Ali Nizar said land reclaimed for tourism development had been created under plans prepared by the council. He alleged that the government amended legislation to assume control of the land while development work was under way.
Nizar said the council had received investment proposals for the areas but was unable to proceed with development because of the change in control.
He also said the transfer of land to the central government without consultation had created uncertainty among investors in the Feydhoo Tourism Zone. According to Nizar, many local investors are financing projects in the area without government or bank loans, and changes in government policy could affect those investments.
Zareer said Addu's tourism strategy is based on an integrated tourism model that reflects the city's geography, adding that Savahili was intended to form part of that approach.
He argued that Addu has the potential to expand its tourism sector and said government policies had limited that growth.
"Therefore, what the Maldivian government needs to do for the people of Addu is to fulfil President Mohamed Muizzu's promises—enabling us to move forward in a way that delivers development and direct economic benefits to the residents of Addu, just as they have repeatedly requested," Zareer said.