Land acquisition worth MVR 878 million by the Government
Just a little over two years ago the Maldives Government made a similarly large acquisition when they purchased land worth MVR 428 million in order to establish embassies in Hulhumale’.
Maldives Government has purchased 17 land plots from Hulhumale Phase II, which amounts to a total of MVR 878 million, and will be recorded in the books of Housing Development Corporation (HDC).
As the primary proprietor of land in Hulhumale’ the Government is obligated to purchase/make land acquisitions through HDC for the development projects in this area of the Maldives. And while this large sum of acquisition has been made during a time when the Maldives economy is strongly focusing on repaying debt and economically recovering from the financial burdens that the country faced due to the COVID-19 period, the reasoning behind the land acquisition remains undisclosed.
Just a little over two years ago the Maldives Government made a similarly large acquisition when they purchased land worth MVR 428 million in order to establish embassies in Hulhumale’.
And while the Civil court of the Maldives has declared the acquisition of this land legal, the reasoning for spending such a large sum of money on land acquisition is yet to be unveiled.
Many are now curious as to why the Government would make such a hefty purchase for 17 plots of land totalling MVR 878 million when the Government’s domestic debt alone reached MVR 73.5 billion by the end of 2022 while also owing the Maldives Monetary Authority (MMA) over MVR 12 billion. With the country’s budget for 2023 largely focusing on debt repayment and fixing the worsening debt situation of the country, this purchase comes as a shock to many as it goes against the aim to cut costs in order to increase revenues and maintain the debt situation of the country.
