STELCO’s former directors owe MVR 300,000 in rent; Shujau suggests cutting off electricity

The Parliament’s Public Accounts Committee decided on Tuesday to take action against several former board directors of State Electric Company (STELCO), who owe around MVR 300,000 in outstanding rent payments for flats issued from the STELCO towers in Hulhumale’ Phase II.

The decision followed a motion presented to the committee by Kelaa MP Abdulla Shareef, a lawmaker from the ruling People’s National Congress (PNC), over failure of STELCO employees to pay rent.

Shareef said that while staffers with outstanding rent payments who remain employed at STELCO have their salaries docked as per the terms of the contract, the company is unable to get the rent from its former board members.

He said that they should be penalized for failure to pay rent.

According to the administrative desk, there are 33 people with outstanding rent for STELCO flats.

“I don’t believe it right that for there to be this level of double standards. The employees there on low-paying jobs are getting their salary docked each month if they don’t pay [rent],” said Shareef.

Shareef said that some of STELCO’s former board directors owe MVR 300,000 in rent payments.

Hanimaadhoo MP Abdul Gafoor Moosa, a lawmaker from the opposition Maldivian Democratic Party (MDP), said the company should stick to the contract it has with employees. He also said that the issue of outstanding rent can only be resolved “once we clarify what is happening to the money.”

Meanwhile, Baarah MP Ibrahim Shujau, the senior deputy leader of PNC’s parliamentary group, suggested that the company’s former directors who aren’t paying rent should have the electricity to their flats cut off.

“If a former employee fails to pay rent, then STELCO can immediately cut power to the place,” he said.

Shujau said that failure to take action will only escalate the situation.

Shareef recommended that STELCO should take action to recover outstanding rent, including cancelling contracts for breaches. This was seconded by North Henveiru MP Ahmed Aifan, a PNC lawmaker, and passed with the unanimous consensus of the committee.

The 360-flat STELCO towers were built at the cost of MVR 692 million. The flats were handed over to employees in August 2022.