Hulhidhoo agreement in effect; no talks over termination: Minister
The people claim that the deadline given to the company to commence work on the island has expired.
By
Aminath Shifleen
Government on Sunday denied claims made by the people of Vaavu atoll saying that the contract made with an agreement to develop the island of Hulhidhoo which had been leased for an agricultural contract has been nullified due to non-progress of any work.
In 2017, V. Hulhidhoo was leased to a company called Aarah Investment for agricultural purposes, but the people of the atoll are now angry about no agricultural work being done on the island and protested for days over the issue.
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The people claim that the deadline given to the company to commence work on the island has expired
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The agreement is invalid now, they claim
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There have been protests calling for the island to be returned to the people for their recreational needs
According to the Vaavu Atoll Council:
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The island has been destroyed in the name of work; the natural lake had been filled and the land reclaimed, and the jetty is built in a location that was not advised by the EIA.
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A large portion of the reef around Hulhidhoo has been cut off to make way for a barge.
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The island was allotted for agriculture, but the concept was designed to include tourism components, allowing for a futsal turf, cafe and water sports.
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The council alleged that the island was leased for undue benefits to the company.
Some residents of Vaavu atoll staged a two-day protest in Hulhidhoo demanding that the island be handed back to the people, alleging that the agreement had been cancelled.
When Atoll Times inquired regarding the issue of Hulhidhoo on Sunday, agriculture minister Dr Hussain Rasheed Hasan said that the lease of Hulhidhoo was made for a period of 21 years and nothing has happened so far that could lead to the cancellation of the agreement.
According to the minister, the deal would be scrapped if:
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The company did not pay rent, or failed to make rent payments after being served a notice
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Lagging in meeting project deadlines within the stipulated time period, and failing to do it given more time even
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If there is no change even after issuing a notice to rectify the developmental lag and doing things that are not allowed in the developmental plan for the island, then the agreement could be terminated after further discussions with the company.
According to the minister, due to the Covid-19 crisis, many companies that leased uninhabited islands were given extensions as there are many challenges delaying work.
"There is also a provision in Hulhidhoo agreement where [the company] had informed that it could not meet developmental deadlines within the stipulated time due to financial constraints,and we have given a time extension for them," said the minister, who is currently in K. Kaashidhoo to attend World Food Day celebrations.
"The point I am trying to make is that an agreement made with the state does not get nullified just because the company we are in agreement with fails to meet a deadline. There are procedures in place to deal with such matters and even in the cancellation of an agreement."
He said that as long as the agreement has not been cancelled, it remains valid and the lease agreement of Hulhidhoo is also valid. The minister also said that there are no discussions made to cancel the deal.
Atoll Times have copies of some of the letters sent by the Ministry of Agriculture to the Vaavu Atoll Council and the parliament regarding the Hulhidhoo issue:
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In a letter to the council, the ministry said that in case the work proposed in the agreement is not carried out and any clause of the agreement is violated, the ministry will abide by the procedure laid down in the agreement without delay.
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In a ministry’s letter to parliament on 4 October, it was stated that the work proposed under the agreement was not being carried out in the island as per the agreed work plan; and so, a one-year extension had been granted from 5 January 2021, to allow them more time.
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The Vaavu atoll council says the deal is nullified as no work has been carried out in Hulhidhoo when the re-allotment deadline had expired in January this year.
The atoll council has also levelled allegations against the government. President Ibrahim Mohamed Solih had pledged to return Hulhuidhoo to the people of the atoll, but no action has been taken so far in the president’s cause. The council's president Shujau Ali alleged that the state is reluctant to take action because they are invested with the company as well.
The minister condemned the allegation.
He said the island was leased out by the previous government and it was not president Solih's decision. The minister described blaming the president for it was an irresponsible act.
The protesters who went on rallying for their cause in rain and sun for two days on the island of Hulhidhoo agreed to disembark from the island and halt their protests when the President’s Office assured them that talks will be held.
