Public Accounts Committee looks into MVR 644,000 owed in STELCO flats' rent

Parliament's Public Accounts Committee has directed STELCO to take appropriate action against rent defaulters following its probe into MVR 664,000 owed as unpaid rent from STELCO flats.

MPs speaking in today's committee meeting said that it is mostly persons who previously served in senior positions at STELCO who are now defaulting on rent.

The committee debated the issue today, which was raised by ruling People's National Congress (PNC) MP Abdulla Shareef (Kelaa).

Shareef said that while the flats were developed for STELCO staff, unpaid rent is deducted from staff salaries. This is, however, not possible in the case of former senior officials of the company, who are now failing to pay rent regularly.

Shareef's concern is the lack of action taken against such defaulters. He maintains that a more equitable system needs to be in place for the collection of rent.

"Some former board members and other senior officials of the company are now free from this. So now the rent won't be deducted from their salaries. What's left is to take action against them. It does not make sense to discriminate like this," Shareef said.

Shareef stated that action needs to be taken against defaulters, with the flats being reclaimed if such an action is required. He proposed that STELCO be directed to take appropriate action in the case of rent defaulters, which North Henveiru MP Ahmed Aifan seconded.

As per information provided to the committee by STELCO, 33 individuals have failed to regularly pay rent for their flats. The highest amount owed under this is MVR 178,000 from one flat.

While unpaid rent amounts to MVR 488,000 in total, there also fines of up to MVR 155,000 due.

Opposition Maldivian Democratic Party (MDP) MP Abdul Ghafoor Moosa (Hanimaadhoo) said that the issue of flats is a matter between the staff and the company. His stance is that the Public Accounts Committee should not intervene in the matter. Ghafoor stated that it is a given that the two parties involved must act in accordance with the rent agreement signed between them.

Baarah MP Ibrahim Shujau said that electricity services should be disconnected in flats where rent is not regularly paid.

"It is staff who have left or retired from STELCO that are not paying their rent. That is the main issue. For example, if a staff who has left the company fails to pay rent, STELCO can immediately disconnect electricity supply to the flat," Shujau asserted.

The committee voted in favour of Shareef's proposal to instruct STELCO to look into the matter of unpaid rent, and to take adequate action.

Flats for STELCO staff have been developed in Hulhumale' Phase 2, of which 360 units have been issued. The flats were issued in 2022. STELCO flats development project cost MVR 623 million. Staff are charged MVR 2.1 million to own a one bedroom flat.