President Dr. Mohamed Muizzu on Sunday hit back at criticism over seemingly ad hoc decisions by his administration to offer concessions on rent and waive fines for social housing units built by taking out huge loans, insisting that these decisions are being made in a manner that will not overburden the state.
Since taking office in 2023, President Muizzu has cut the rent on the Hiyaa towers, government-issued flats in Hulhumale’ Phase I, as well as several projects in the atolls, and has also cut both the rent and downpayment on the Vinares flats in Hulhumale’ Phase II.
And last week, he announced the decision to cut the downpayment and rent on the 4,000 flats built in Hulhumale’ Phase II under the former administration’s ‘Gedhoruveriya’ project – after announcing earlier that it would be higher than the rent the Maldivian Democratic Party (MDP) administration had announced it would charge. But the new rent rates remain higher than the originally announced ones.
His administration also recently waived the fines on outstanding rent payments for the Hiyaa towers.
These decisions – criticized by the opposition as a political ploy used to win votes - come with information released by the Housing Development Corporation (HDC) showing that out of the over 8,000 housing units it manages in Hulhumale’, 60 percent of the tenants fail to make regular rent payments.
It has sparked concern over the strain it is putting on state coffers, which is already stretched thin as the country grapples with a crippling debt crisis.
Many raised these concerns directly with President Muizzu during his public meeting on Sunday night with residents of Hulhumale’ Phase I.
Responding to these concerns, President Muizzu sought to reassure the public, insisting that all his decisions are well-informed and take into account the possible economic implications.
President Dr. Mohamed Muizzu meets the residents of Hulhumale' Phase I on December 21, 2025. (Photo/President's Office)
“We do not offer any concession, including a fine waiver, before ensuring it does not hinder out external and internal debt repayment plan,” he said.
President Muizzu said that his administration is making such concessions in a manner that the state can carry the burden.
But he did not provide any details.
Information obtained by Sun under the Right to Information (RTI) Act in May showed the HDC was owed a staggering MVR 728 million in outstanding rent payments.