ACC Investigates Allegations of Corruption in Police Flats Development

The Anti-Corruption Commission (ACC) launched an investigation into allegations of corruption in the development of police flats, conducting a search at the Polco office yesterday.

The investigation follows an audit report issued by the Auditor General’s Office last week, which revealed that over a billion Rufiyaa was spent on constructing the “Blues Housing” apartment complex over a 10-year period. Despite this expenditure, the project incurred a financial loss of MVR 355 million.

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According to the report, agreements with contractors were revised multiple times, and payments were issued under different names rather than being made directly for completed work. The Audit Office has recommended that the ACC and other investigative agencies take action against those responsible for these transactions.

The report further highlighted that delays in project completion and specific decisions resulted in financial losses for the government while benefiting the contractor. As Polco’s board failed to prevent these issues, the Audit Office also called for them to be held accountable.

Construction of the police flats began in 2013 under a contractor-financing agreement with Noomadi. However, the contract was terminated on 27 January 2016 due to political and financial challenges. The project was then transferred to Island Experts, but the company went bankrupt during the COVID-19 pandemic, leading to further delays and another contract termination.

Amin Construction was later awarded the project, with an initial completion deadline set for 2022. The contract was subsequently extended to allow additional time for completion.

Despite the setbacks, police personnel moved into the 361 three-bedroom apartments last year.