FAM urges govt to reinstate lease for Hulhumalé football project
According to the FAM, the rent was not paid because the previous FAM administration had entered into sublease agreements.
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The Football Association of Maldives (FAM) has requested the government to reinstate the cancelled headlease of a land parcel in Hulhumalé that was previously allocated for the development of a football school or training facility.
In a statement issued Thursday, the FAM Normalisation Committee stated that the Housing Development Corporation (HDC) cancelled the headlease due to two main reasons: the failure to implement the proposed school project and non-payment of rent.
FAM noted that the land was allocated for football development, not for commercial use, and argued that the land allocation should be reinstated in recognition of the social relevance of such facilities.
"Given the increasing population in the Greater Malé area and the lack of accessible space, the Normalisation Committee expresses concern over the loss of land that had been designated for football development," the statement said.
According to the FAM, the rent was not paid because the previous FAM administration had entered into sublease agreements. The statement outlined the following concerns with those agreements:
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Subleases were granted without public announcement or competitive bidding.
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Although the headlease was issued for 40 years, some subleases extended beyond this period.
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FAM’s rent to the state was MVR 10 per square foot, while subleases were issued at MVR 3 per square foot.
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Funds from subleases were collected in bulk, but it is unclear how much was deposited into the official FAM account.
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The FAM had no rent grace period, but sublease agreements included extended grace periods.
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Termination clauses in the sublease agreements could result in significant compensation liabilities.
The Normalisation Committee called for a detailed audit to examine how the sublease agreements were formulated and how the associated funds were utilised.
The Office of the Auditor General previously flagged the matter in an audit of the Ministry of Youth, Sports, and Community Empowerment covering the years 2018 to 2023. That audit raised several issues, including:
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Project funds were released from the contingency budget without going through the tender board process.
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The contract was awarded to a contractor who was not the lowest bidder, following the elimination of other candidates.
The case is currently under investigation by the Maldives Police Service and the Anti-Corruption Commission (ACC). Former FAM President Bassam Adeel Jaleel has been charged in two corruption cases. He has also been suspended by FIFA pending the outcome of the investigations.
