Parliament Sub-Committee Recommends Seizing Hulhumalé Luxury Flats to Recover POLCO Funds

A sub-committee of the Parliament’s Public Accounts Committee has proposed that the government take control of a luxury apartment complex under construction in Hulhumalé, as compensation for funds allegedly misappropriated in the POLCO police housing corruption scandal.

The building, being developed by Island Experts Pvt Ltd in Hulhumalé Phase II, has been under construction for some time. According to the company’s social media platforms, the 15-storey complex is being built with high-end amenities and was originally designed to house 117 luxury apartments.

Deputy Speaker of Parliament Ahmed Nazim, who chairs the sub-committee investigating the case, said the state could potentially construct 150 social housing units on the site if the takeover proceeds. He described the move as a significant step, noting it would be the first time the state recovers losses in such a corruption case through the seizure of property.

Nazim stated that the estimated loss from the POLCO housing project stands at MVR 291 million, a figure lower than the MVR 355 million cited in the audit report. He did not elaborate on the reason for the discrepancy. The building’s seizure was recommended after the sub-committee claimed to have uncovered solid evidence during the course of its investigation.

“This is not money that has been brought in from external sources,” Nazim said. “It is public money that has been diverted for other purposes.”

The sub-committee also noted that while construction of the building is ongoing, the Housing Development Corporation (HDC) has not yet authorised the sale of any of the apartments. According to HDC policy, developers can only begin selling units once 20 percent of the building is completed. However, it is widely known that many companies begin marketing and selling flats before reaching this threshold.

Nazim added that, as no official sales had yet taken place, no individuals would be affected by the proposed state takeover.

During Monday’s meeting, Funadhoo MP Mohamed Mamdooh proposed forwarding a report to the main Public Accounts Committee. The report includes information gathered from various government agencies during the investigation, as well as the findings and recommendations compiled by the sub-committee. His proposal was accepted by the members present.

The sub-committee also decided to recommend the establishment of a specialised financial investigation unit under the Anti-Corruption Commission (ACC) to further investigate the POLCO case.

The audit that triggered the investigation focused on Blues Housing – a police housing project launched in June 2013. Initially awarded to Noomadi for MVR 580.2 million, the contract was later terminated and reassigned to Island Experts, and eventually Amin Construction, during the previous administration.

According to the audit report, Island Experts was given favourable treatment and received advance payments amounting to MVR 129.5 million and USD 2.7 million – far exceeding the value of the work completed at the time. The audit also found that total spending on the POLCO housing project had surpassed MVR 1 billion, with significant delays and quality issues observed during site visits.