President Dr. Mohamed Muizzu's cabinet has decided to transfer all municipal services of Hulhumalé to Malé City Council, starting from Monday, January 1.
Urbanco currently provides all the primary municipal services in Hulhumalé. Transferring these services to the City Council, as mandated by the law, fulfills a presidential promise made by President Muizzu.
In a post on X after the cabinet meeting, the President stated that the transfer of offices, equipment, land, and staff would be completed within the month. He also said that the staff currently employed in the municipal services of Hulhumalé will receive their salary for one more year.
He added that the details would be announced later.
There was a major dispute between Urbanco and Malé City Council, which is currently in charge of Hulhumalé land, regarding the jurisdiction and ownership of Hulhumalé land.
The council argued that Hulhumalé falls under its jurisdiction, and councilors were elected by the people of Hulhumalé. Therefore, they asserted that the council should be in charge of it.
Urbanco, however, contended that Hulhumalé was the company's capital and that the 100 percent state-owned company was also established in a way that Hulhumalé falls under its purview.
The issue escalated, and in 2021, Hulhumalé's registration was canceled by the City Council. This was following a Progressive Party of Maldives (PPM) rally that was halted by Urbanco with the assistance of the police, as it was conducted without permission.
When Urbanco filed the case in court, the case concluded with Hulhumalé being recognized as the company's land.
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