Male City Council Seeks to Cancel Fish Market Redevelopment Agreement Over Financial Risk
Financial risks prompt malé council to review fish market redevelopment contract | Photo: Male City Council
The Mayor of Malé, Adam Azim, has stated that the city council is working to cancel the agreement for the redevelopment of the capital’s fish market, citing financial risks linked to the contract.
Speaking at a press conference held to release the audit report on the project, Azim said the agreement, which was signed shortly before he assumed office, could result in the council losing control of the fish market site for 25 years if a payment of USD 9.5 million is not made to the contractor.
The original contract for the redevelopment project was valued at USD 6.1 million. However, the amount was later revised to USD 9.6 million. Azim said the project cost had been altered multiple times without sufficient justification, raising concerns about the financial implications for the council.
Under the terms of the revised agreement, failure to pay USD 9.5 million would result in the project becoming the contractor’s property for a period of 25 years. Azim warned that such an outcome would effectively deprive the city of its fish market site and prevent any development of the area during that time.
The matter has been referred to the Anti-Corruption Commission and the Auditor General’s Office for further investigation.
The fish market redevelopment was initiated during the mayoralty of Mohamed Muizzu. At the time, the council had called for bids, evaluated proposals and awarded the project for USD 6.1 million. Before the mayoral seat became vacant on 17 November 2023 and prior to Azim taking office, the initial agreement was cancelled and a new contract was signed with a different company.
The revised agreement was signed on behalf of the council by Ali Naseer Gasim, head of the council’s legal section. According to Azim, no clear explanation was provided as to why a new agreement was required or why the project cost had increased by USD 3.5 million.
Subsequent council meetings addressing the issue were reportedly cancelled due to a lack of quorum, with the council majority unable to proceed with agenda items related to the matter.
