HDC withdraws lawsuit against FAM to settle Hulhumale' football school land dispute out of court

The Housing Development Corporation (HDC) has withdrawn its lawsuit against the Football Association of Maldives (FAM) for an out-of-court settlement.

Former President Abdulla Yameen’s government gave FAM a large piece of land in Hulhumale’ Phase One without any rent. But when FAM wanted to use some of the land for commercial purposes, HDC changed the agreement during the government of former President Ibrahim Mohamed Solih and allowed commercial use as well. FAM was also required to pay rent under the revised agreement.

However, FAM did not pay the rent, and HDC issued notices at various stages. FAM still failed to pay even after a red notice was posted on the premises with the threat of confiscation. HDC then cancelled the agreement and took over the land. FAM was ordered to vacate the leased area.

HDC subsequently filed a lawsuit against FAM. However, the corporation withdrew the case on Thursday to resolve the matter through negotiations.

An earlier audit report stated that about MVR 30 million had gone missing from the land subleased by FAM under the agreements signed between FAM and HDC for the purpose of building international-standard football training facilities in Maldives.

The Audit Office identified serious cases of corruption, fraud and negligence in connection with the 2018 project to develop a football training school in Hulhumale’, carried out in collaboration with the President’s Office, the Sports Ministry and FAM.