Assets allegedly acquired through fraudulent means in the controversial police flat construction project during the first phase of the Hulhumalé development are to be seized by the state, according to a recommendation made by a sub-committee of Parliament.
The proposal was included in a report submitted today by the parliamentary sub-committee established under the Finance Committee to investigate the construction of the police flats.
Deputy Speaker of Parliament and MP for Dhiggaru constituency Ahmed Nazim, who chairs the sub-committee, said the report highlights unlawful decisions made by the Police Board to grant undue benefits to Island Expert — the company awarded the second phase of the project after the original contractor failed to complete the work.
He noted that after delays in completing the initial contract, the project was removed from Island Expert, who was paid an additional MVR 129.5 million and USD 2.7 million.
Nazim further revealed that Island Expert has since acquired land in Hulhumalé and constructed a 17-storey concrete building. One of the company’s directors also purchased land in the area. Documentation regarding these transactions has been obtained by the sub-committee.
As a result, the report recommends that the state take possession of these properties, as they were developed using public funds.
The Auditor General's Office previously reported that the police welfare company Polco suffered losses amounting to MVR 355 million from the project. Overall, MVR 1 billion was spent on constructing the flats.
The initial contract to construct three 13-storey towers comprising 300 housing units was awarded to Noomadi on June 19, 2013, for MVR 580.2 million, with a completion timeline of 24 months. The project scope was later revised to include 361 housing units.
However, due to prolonged delays, the construction was ultimately taken over by Amin Construction in 2021.
The Anti-Corruption Commission (ACC) is also conducting a separate investigation into the alleged fraud surrounding the project.
The proposal was included in a report submitted today by the parliamentary sub-committee established under the Finance Committee to investigate the construction of the police flats.
Deputy Speaker of Parliament and MP for Dhiggaru constituency Ahmed Nazim, who chairs the sub-committee, said the report highlights unlawful decisions made by the Police Board to grant undue benefits to Island Expert — the company awarded the second phase of the project after the original contractor failed to complete the work.
He noted that after delays in completing the initial contract, the project was removed from Island Expert, who was paid an additional MVR 129.5 million and USD 2.7 million.
Nazim further revealed that Island Expert has since acquired land in Hulhumalé and constructed a 17-storey concrete building. One of the company’s directors also purchased land in the area. Documentation regarding these transactions has been obtained by the sub-committee.
As a result, the report recommends that the state take possession of these properties, as they were developed using public funds.
The Auditor General's Office previously reported that the police welfare company Polco suffered losses amounting to MVR 355 million from the project. Overall, MVR 1 billion was spent on constructing the flats.
The initial contract to construct three 13-storey towers comprising 300 housing units was awarded to Noomadi on June 19, 2013, for MVR 580.2 million, with a completion timeline of 24 months. The project scope was later revised to include 361 housing units.
However, due to prolonged delays, the construction was ultimately taken over by Amin Construction in 2021.
The Anti-Corruption Commission (ACC) is also conducting a separate investigation into the alleged fraud surrounding the project.
