Malé council requests LGA mediation in dispute with housing ministry

The Malé City Council has asked the Local Government Authority (LGA) to intervene in an ongoing dispute with the Ministry of Housing, Land and Urban Development regarding the redevelopment of the Malé Local Market and Fish Market.

In a statement issued on Saturday, the council rejected claims by the government and the Housing Ministry that it is delaying the project by refusing to hand over the land required for the redevelopment.

The council said the land has not been transferred because two existing agreements related to the project remain in force. According to the council, those agreements must first be terminated through the required legal and administrative procedures before the land can be handed over for a new project.

The council further stated that the Housing Ministry awarded the redevelopment project to a third company without consulting the council, despite the land remaining under the council's jurisdiction.

According to the statement, the council had requested information about the newly contracted company, project plans and related documentation. It said these requests were made because the land is registered under the council's authority.

During a recent council meeting, councillors resolved that the land could only be handed over after the requested information is provided and the earlier agreements are legally concluded.

The council said it had communicated its concerns to the ministry through official correspondence but had not received responses.

It also accused the ministry of publicly portraying the council as uncooperative while being aware of the existing contractual arrangements and proceeding with project planning without council involvement.

As a result, the council said it had formally requested the LGA to act as a mediator between the two parties.

According to the statement, the council believes proceeding with the project under the current circumstances could create legal liabilities.

The council said it had sought direct discussions with ministry officials to address the matter, but was informed that communication would be conducted only through written correspondence.

“Malé City Council has now requested the LGA to act as a mediator to resolve the manner in which the Housing Ministry is treating this council, and to facilitate a way forward that coordinates these efforts within legal boundaries,” the statement said.

The council reiterated that it supports the redevelopment of the market facilities and considers the project an important component of its strategic plans for the city.

However, it said the project should proceed only after the relevant legal and administrative requirements have been addressed.