Housing Development Corporation (HDC) on Monday, November 7, responded to Football Association of Maldives' (FAM) decision to release part of the training facility to Apollo Holdings as compensation.
According to HDC, FAM's decision to release the plot for commercial use of a third-party was a violation of the contractual agreement between the two.
HDC's Managing Director Ahmed Athif made this clarification, noting that the agreement prohibits its tenant from issuing the plot for third parties. Athif further confirmed FAM has proposed changes to contract provisions, that will legally enhance its recent decision.
Athif confirmed the matter was currently being looked into.
Reports further claim FAM has released parts of the plot to several other private parties aside from Apollo for commercial use.
HDC issued the plot to FAM to develop a football training facility. Agreement between the parties confirm development of two football pitches within the facility.
The parties entered formal agreement in 2018.
Meanwhile, as compensation for outstanding debt owed to Apollo Holdings, FAM has released 5,000 square-feet of this plot without rent for a period of 25 years.
While the debt owed to Apollo is MVR 13 million, with respect to their out-of-court resolution, the actual debt amounts to MVR 45 million.
Civil Court's Thursday, November 3, judgement confirmed an out-of-court agreement was arrived and signed between FAM and Apollo Holdings earlier on June 14, with the latter's Director Mohamed Waheed acting as guarantor. A letter confirming this settlement was sent to Civil Court on October 31, 2022.
FAM in recent months, has come under fire for substantial debt owed to multiple parties it had entered contractual agreements with. Earlier, State Electric Company (STELCO) cut power from FAM House owing to hefty outstanding electricity bills.
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