FAM debt settlement with Apollo unauthorised: HDC
Recently, the Housing Development Corporation (HDC) told Atoll Times that "HDC will not allow its use" if it violates the purpose of allotment of the land.
By
Ahmed Mizyal
Housing Development Corporation (HDC) said on Monday that it had not permitted Football Association of Maldives (FAM) to trade 5,000 square feet from the Football Training Facility in Hulhumale with Apollo Holdings Private Limited as settlement for MVR 13 million debt.
The information about the case of FAM, which has been recently embroiled in a number of debt scandals, came to light when Apollo filed a civil suit against FAM in court on Sunday. Judge Rizmina Idris, in her ruling, ruled that the case was settled as FAM had agreed to give land to Apollo in exchange for money owed.
An HDC official told Atoll Times on Monday that the FAM has requested to hand over a portion of the Hulhumale training facility to Apollo. This was a proposal by the FAM to "add a commercial component" to the land.
"However, we are yet to make any changes to the agreement between FAM and HDC," the official said.
"[Though a request has been received], it cannot be done without the knowledge of HDC [giving a portion of the land]. The HDC will look into the matter."
Apollo sued FAM for failing to comply with the settlement agreement signed in December 2021. Apollo requested the court:
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To recover MVR 2.3 million which was unpaid under the settlement agreement
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USD 263,745 (MVR 4 million)
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To retain the money coming in as liquidated damages
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USD 296,000 (MVR 4.5 million) for additional work
The settlement agreement was signed without paying for Apollo's work on the land allotted to FAM in Hulhumale Phase I. On the request of Apollo, the Civil Court also issued an interim injunction restraining the site from being handed over to the FAM until the matter is settled.
During the course of the trial, Apollo wrote a letter to the court last Monday stating that it had reached an out-of-court settlement in consultation with the FAM. The two sides had agreed that a portion of the land where the FAM's training facility is located would be given to Apollo for construction and use without charging any additional cost.
There have been rumours in the past that lands are being leased out to pay off FAM debts. Recently, the Housing Development Corporation (HDC) told Atoll Times that "HDC will not allow its use" if it violates the purpose of allotment of the land.
HDC said that in the ongoing negotiations, FAM has proposed to add a "commercial component" that is not in the original agreement on the 230,000-square-foot plot. It was not immediately clear whether HDC had agreed.
The FAM-related payments and debt issues that came to light recently include:
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Power cuts in the wake of MVR 6.5 million unpaid dues to STELCO
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Not paying the players the prize money they deserve
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Former U-23 national football team coach Rene Hiddink of Netherlands is owed MVR 2.9 million
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Civil Court directed FAM to pay ADK Hospital MVR 1.7 million for unpaid invoices
