Majlis Committee Proposes State Takeover of Properties Linked to POLCO Scam

A parliamentary sub-committee has recommended that the state government recover funds and properties allegedly acquired through fraudulent means in the police housing project overseen by the Police Cooperative Society (POLCO). 

The decision follows revelations from an Auditor General’s report, which uncovered widespread financial mismanagement in the construction of flats meant for police personnel.

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The sub-committee, operating under the Public Accounts Committee and chaired by Deputy Speaker Ahmed Nazim, has found that substantial financial benefits were gained by certain individuals through the controversial project. The committee claims that money misappropriated during the construction of the flats was used to purchase land and properties in Hulhumalé.

“We have verified that some individuals received huge financial benefits. Properties, including land and flats in Hulhumalé, were acquired using misappropriated funds. We are recommending the government to seize these assets,”Deputy Speaker Ahmed Nazim

According to the committee, the project was initially awarded to a company named Noomadi for MVR 580.2 million. After delays, the contract was terminated and reassigned to Island Expert. However, due to further delays and irregularities, the project was ultimately handed over to Amin Construction during the previous MDP administration.

The audit report alleges that Island Expert received favourable treatment, including excessive advance payments. The company reportedly received MVR 129.5 million and USD 2.7 million more than the value of the work completed at the time the contract was terminated. Nazim, who also represents the Dhiggaru constituency, stated that the Island Expert used these funds to purchase multiple plots in Hulhumalé and initiate a 17-storey building project.

Audit Report has also identified links between the directors of Island Expert and Noomadi, suggesting shared interests and possible collusion. The sub-committee report further implicates individual police officers in facilitating the release of funds in violation of POLCO’s rules.

Nazim confirmed that the sub-committee’s findings include recommendations for disciplinary action against these officers. A follow-up meeting has been scheduled for next Monday, where the committee plans to seek responses from current POLCO leadership before finalising its report to the full Public Accounts Committee.

In total, MVR 1 billion was spent on constructing 361 flats under POLCO, with losses estimated at MVR 355 million. Although the flats have been completed and are currently occupied last year, the scandal has cast a long shadow over the project.

The audit also pointed to similar irregularities in an army housing project, which was completed around the same time, raising broader concerns about corruption in state-backed housing initiatives.