FAM ordered to pay MVR 170K rent dues
Police raided the FAM building last November and seized evidence.
Top Stories
By
Fathmath Ahmed Shareef
The Civil Court on Sunday ordered the Football Association of Maldives (FAM) to pay MVR 170,000 within seven days to Bright Brothers Pvt Ltd for leasing a two-storey building containing a restaurant from them for a term of five years, and then leasing it again in violation of the agreement, as well as accruing electricity, water bills and one month's rent.
On April 1, 2020, FAM and Bright Brothers agreed to lease a total of two floors, including the restaurant and the first floor, built on a plot called Olvina in Mahchangolhi ward, Male, for a period of five years. Under the agreement, the rent for the site is MVR 100,000 per month.
The property was handed back to Bright Brothers before the term of the agreement was completed, on June 14, 2022. Bright Brothers filed a civil suit seeking to recover the money, saying FAM had not paid a month's rent and several electricity and water bills for the property.
The company filed a civil suit seeking damages totaling MVR 370,153 from the FAM. Thus:
-
To withdraw the amount for non-payment of MVR 150,000 rent dues between April 15, 2022 and May 31, 2022, before handing over the property
-
As the land was handed over on June 14, 2022 in violation of the agreement, MVR 46,666 rent dues were to be paid from June 1 to 14 of that year.
-
To collect MVR 72,585 due on the power bill till the building was handed over
-
To collect MVR 901.91 on the water bill till the building was handed over
-
MVR 100,000 as compensation for damages suffered by Bright Brothers for breaching the agreement
In the civil court, FAM agreed that MVR 223,487, including 150,000 unpaid dues for electricity and water bills, would be paid. They sought a year's time to pay the amount.
However, the FAM did tell the court:
-
MVR 46,666 due from 1 June 2022 to 14 June of that year is not a valid payment; the delay in handing over the premises during that period was due to the negligence of Bright Brothers as they lengthened taking the keys to the premises
-
Damages claimed by Bright Brothers of MVR 100,000 is not a valid payment; They cannot specify what damages and how these damages were done
The Civil Court ordered the FAM to pay a total of MVR 170,000. The reasons for the verdict:
-
Bright Brothers' request for recovery of MVR100,000; at Sunday's hearing the company had said that it had been handed over by the FAM out of court. Therefore, the money should be deducted from the lawsuit
-
The damage requested for MVR 100,000 is not recoverable as it has not been specified, except to say that the company suffered losses
-
MVR 46,666 as rent due during the period 1-14 June 2022 for delay in handing over the keys is a payment that should be made by the FAM; the premises were handed over before the deadline stipulated in the agreement. It is not known whether the FAM had tried to hand over the keys to the owner until June 14
-
MVR 123,487 for electricity and water services should be made
There have been a number of cases of non-payment of dues by the FAM to various parties recently. The Civil Court had also ordered the FAM to pay USD 32,426 (MVR 500,000) within a year to Beehive Hotels.
In addition, there are other major financial cases pending in the Civil Court against the association. These include cases of enforcement of judgments against the FAM for failing to pay money previously ordered to be paid.
The major financial issues facing the FAM are:
-
MVR 6.5 million outstanding to STELCO; FAM’s electricity was cut off over the issue
-
Prize money for players
-
Owes MVR 2.9 million to former Under-23 coach Rene Hiddink of the Netherlands
-
ADK Hospital's service-bills in 2021; civil court last year ordered FAM to pay MVR 1.7 million within a month’s period
-
The FAM has leased 5,000 sqft of land from the football training facility to Apollo Holdings Pvt Ltd for 25 years in exchange for a compensation amount of MVR 13 million
Police are investigating alleged money laundering cases against FAM officials on the orders of the Prosecutor General (PG). Police raided the FAM building last November and seized evidence.
Prosecutor Hussain Shameem has recently said that the main accused in the FAM fraud case is former FAM president Bissam Adil Jaleel.
