Public Finance Committee to evaluate Tata – government contract

Public Finance Committee of People’s Majlis has made the decision to evaluate the contract made between the government and Indian conglomerate – Tata – to build housing units in Gaakoshi and plot of land where Arabiyya School used to be.

The contract was made during former President Mohamed Nasheed’s tenure.

Public Finance Committee made the decision to evaluate the contract after tenants were asked to pay MVR 2 million within 5 years – which comes up to MVR 33,000 per month.

Committee members said that price of the flats went up because of the huge amount of money government has to pay Tata in bulk with the completion of the project.

Tata was awarded the contract with “special incentives”, which includes them having to be paid USD 18 million (MVR 277.5 million) with the completion of the project.

Committee members noted that Tata was awarded the contract with “special incentives” as Tata has been given the ground floor, first floor and second floor for 50 years, given Lh. Losalafushi to develop a resort, and exempted from having to pay duty for equipment and material brought into the country from abroad for the project.

A joint venture was made between Tata Housing, Apex Realty and SG18 Developers for the project.

The 11-storey buildings built in the two plots of land has total 319 apartments.

The issue of the Tata flats was brought to the attention of Committee by ruling Progressive Party of Maldives (PPM) parliamentarian, MP Ahmed Rasheed.

It was decided during Monday’s Committee meeting to obtain the contract between Tata and government before this Tuesday, and debate and evaluate the contract during the open Committee meeting on Wednesday.

Opposition party – Maldivian Democratic Party (MDP) parliamentarians who belong to the Committee, also voted in favor of evaluating the contract.

MDP parliamentarian, MP Ibrahim Mohamed Solih (Iboo) during Public Finance Committee meeting. Sun photo: Fayaz Moosa

They said that they were in favor of evaluating the contract before making any changes.

Leader of Public Finance Committee, parliament majority leader MP Ahmed Nihan Hussain Manik said during the end of Monday’s Committee meeting that the issue would be looked into and revealed to the public as it was of great concern to ordinary civilians.

He said the evaluation would be carried out openly, with access given to as many media stations as possible.

Original contract to build the housing units was signed in May, 2010.

Work on building the housing units came to a standstill in February, 2011, but was started again in the beginning of 2015 with amendments to the contract.