Rent penalties worth MVR 25.9m waived for Sinamalé, Malé Hiyaa
The President has also decided to provide an incentive of MVR 100,000 to residents of the flats in response to concerns over building conditions.
The Malé City Council on Thursday approved a decision to waive rent penalties owed by residents of the Sinamalé and Malé Hiyaa flats, which together amount to MVR 25.9 million in rent, maintenance fees and penalties.
The decision follows a commitment made by President Mohamed Muizzu to waive the penalties after meeting residents of the two housing blocks in Galolhu. During a meeting held last December with residents of the Galolhu ward, concerns were raised over the condition of the buildings and the accumulation of unpaid charges.
After further discussions with residents earlier this month, the President said the penalties imposed on the flats would be waived and that an allowance would be provided to address residents’ concerns.
As the flats fall under the jurisdiction of the Malé City Council, the waiver required formal approval by the council. The matter was debated during Thursday’s council sitting before being approved.
During the session, some members referred to a previous decision made when President Muizzu served as mayor, under which penalties imposed on the same flats were waived. This led to debate among council members.
Council finance controller Ahmed Imad said the waiver should be approved through council procedures in line with financial regulations.
He told the council that when the flats were opened for privatisation in 2004, outstanding amounts for rent, maintenance fees and penalties totalled MVR 2.6 billion. He said MVR 1.3 million remains due as rent penalties, of which MVR 860,445 has already been waived.
According to council records, as of last month, total outstanding rent, maintenance fees and penalties for the Sinamalé and Malé Hiyaa flats stood at MVR 25.9 million, with rent accounting for 86 per cent of the amount.
President Muizzu has previously said the Sinamalé and Malé Hiyaa flats will be demolished and replaced with a new housing project, a plan approved during his tenure as mayor. At the time, he said residents who already own flats would be allocated new units.
The President has also decided to provide an incentive of MVR 100,000 to residents of the flats in response to concerns over building conditions and outstanding charges. An assessment is to be carried out to identify repair needs at the facilities.
