Attorney General (AG) Ibrahim Riffath has instructed Ministry of Housing and Urban Development to halt the housing development project in Naifaru, Lhaviyani Atoll.
Responding to questions from Parliamentary Committee on National Development and Heritage, Minister of Housing and Urban Development Aminath Athifa revealed the AG had instructed to halt the project.
In a statement, Auditor General's Office explained the decision to award the project to W&A Overseas Private Limited was illegal as the agreement was void ab intio. The statement further explained W&A Overseas was awarded the bid after Ministry of National Planning and Infrastructure had terminated contractor's registration. Ministry of Finance requires all contractors bidding for a project to be registered in the National Contractor Registry. Therefore, W&A Overseas does not fit the requirement when it was contracted the project.
The project, funded by the Public Sector Investment Programme (PSIP), was initiated to develop 100 housing units in Naifaru. The housing units was part of a campaign pledge of President Ibrahim Mohamed Solih made during a visit to the island.
President Solih had also pledged to reclaim 52 hectares of land in Naifaru, which has a population of 5,473 people. The housing units were to be developed in the reclaimed land. Due to need for more land, a land reclamation project was conducted in the island in 2004 as well.
The island council revealed there is currently a population of over 1,000 who needs land plots for residential purposes. Land plots were last issued in Naifaru in 2012 for only 300 people.