Should not have to pay rent for Vilimale

Maldives Transport and Contracting Company (MTCC) has said that it should not be required to pay the MVR2,649,839.70 before the end of July 2012 as rent for the parking zone in front of the Vilimale’ Ferry Terminal, as requested for by Male’ City Council.

MTCC said today that the agreement made with Male’ City Council prior to the handover of block 405 to MTCC does not stipulate that rent should be paid for the current period.

The agreement states that the land was leased at the established monthly rent for land leased to government companies; however with the possibility of defining a period within which a building must be constructed on this land, and also with the possibility of arranging that payment of rent is not necessary during this period.

No buildings have been constructed yet by MTCC on the piece of land in question.

According to MTCC, a period for constructing a building on the land was never defined; thus, it is reasonable to conclude that no rent is payable so far.

MTCC said that discussions had taken place between MTCC and City Council on constructing a building at the block; however, City Council had disregarded MTCC’s suggestions for building plans, and developed a parking zone in the area in October 2011.

When asked for a reason for its actions, Male’ City Council had replied, “We decided to make use of the land, as it was empty.”

MTCC condemned Male’ City Council’s utilisation, without MTCC’s permission, of a piece of land which had been leased to MTCC.

“Following our announcement, several competent groups expressed interest to develop this land plot. However false rumours spread by Male’ City Council in relation to this project resulted in having to halt this MVR213.6-million project. We are making preparations to press charges, to reclaim the losses to the 23,000 shareholders of this company,” an official of MTCC said.

On a different note, MTCC said that efforts are underway to obtain modern vessels in order to improve ferry services.

“As Male’ City Council did not cooperate, it was not possible to make the best use of the land plots subsidised by the government. So we decided that the only way to sustainably provide ferry services was to charge a considerable price, and thus increased the prices of ferry tickets. City Council then said that it will fully cooperate in the efforts to develop land plots, and requested to keep ferry service prices at the same level,” an official of MTCC explained.

MTCC said that Male’ City Council does not have the authority to take over the services provided by MTCC.

Meanwhile, City Council has claimed that MTCC uses ‘fishing boats’ to provide ferry services, and refused to cooperate with the development of the Entertainment Centre at the Vilingili Ferry Terminal by MTCC as long as MTCC does not improve the ferry services.

Moreover, a letter sent by Male’ City Council Mayor Maizan Ali Manik to the CEO of MTCC Dr Ahmed Adham Abdullah requests MTCC to pay within one week MVR2,649,839.70 as rent at the end of July 2012, for the Vilimale’ Ferry Terminal area.

City Council has also commenced its own search for ferry services providers.