Fazul: Hulhumale’ municipal services not transferred to council as it lacks financial capacity

Housing Development Corporation (HDC) states municipal services at Hulhumale’ currently overseen by the corporation have not been handed over to Male’ City Council to date as the Council lacks the resources and financial capacity to assume the responsibility.

Transferring all municipal services in Male’ City to the city council is an electoral pledge of President Dr. Mohamed Muizzu.

Speaking at a meeting of the Parliament’s Public Accounts Committee on Wednesday, HDC’s managing director Ibrahim Fazul Rasheed said HDC is prepared to hand over the services to the city council at any time.

“We, on HDC’s side, are ready to undertake all efforts necessary to reach the government’s goal. We are ready to hand them over even if the council were to request tomorrow. However, we can only hand over the areas remaining after we segregate our commercial units,” he detailed.  

Fazul said a meeting with the city council regarding the matter revealed its lack of capacity to assume the responsibility for the municipal services.

“There are no obstructions from HDC’s side on this. The difficulty or the obstruction persisting in this regard is the lack of financial resources on the city council’s side. They are also ready to assume the responsibility, however, we have been informed that the matter is being stalled until finances are arranged,” he said.

Finance Ministry, HDC and Male’ City Council signed an MoU to transfer the municipal services provided by HDC in Hulhumale’ to the Male’ City Council on January 4^th.

The MoU required HDC to cease the provision of municipal services in Hulhumale’ within one month from execution. However, almost one year later, the transfer of municipal services to Male’ City Council remains incomplete.

The announcement of the shift promoted concern from HDC staff regarding their jobs. Subsequently, President Muizzu assured that none of HDC’s staff will face a reduction in salary, insurance, or any other benefits they are currently receiving despite the shift.

Notably, President Muizzu also attempted to transfer municipal services in Hulhumale’ to Male’ City Council during his tenure as Male’ City Mayor. These efforts were unsuccessful with both the city council and HDC divided on the matter.

Laws require the city council to provide municipal services in Hulhumale’.