Police Return MVR 1.4 Million Seized from Fazul’s Home in Corruption Probe

The police have returned MVR 1.4 million in cash that was seized during a raid on the residence of Ibrahim Fazul Rasheed, the former managing director of the Housing Development Corporation (HDC).

The raid was conducted as part of an investigation into allegations of corruption related to the allocation of housing plots in Hulhumalé.

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Authorities launched the investigation last year after documents leaked on social media on 18 December appeared to show that multiple individuals were awarded land under the ‘Binveriya’ scheme despite not being included in the official recipient list released in 2023 during the Maldivian Democratic Party (MDP) administration. Among those named was Fazul’s older brother, Mohamed Fazeel Rasheed, the deputy managing director of Malé Water and Sewerage Company (MWSC).

The police conducted a search of Fazul’s private residence in Malé City on 23 December. At the time, officers stated that various items were seized, including electronic devices. On 5 January, news outlets reported that a bag containing MVR 1.4 million in cash was also confiscated during the raid.

In a statement issued yesterday, a police spokesperson confirmed that the money had been returned following the completion of necessary inquiries. After reports of the seizure emerged, Relax Ferry Service, a speedboat operator, claimed that the money was a payment made to Fazul for the construction of a speedboat.

The allegations of corruption surrounding the ‘Binveriya’ scheme led to heightened public scrutiny. During a press conference on 18 December, held as protestors gathered outside HDC headquarters in Hulhumalé, Fazul denied any wrongdoing and insisted that HDC had no role in issuing plots under the scheme. He dismissed concerns regarding his brother’s involvement as a coincidence and denied any conflict of interest.

On 19 December, Fazeel, along with Fazul and the entire HDC board—except for chairperson Ahmed Nasif—were suspended, along with at least four senior officials from HDC’s management. Fazul subsequently resigned on 21 December after further leaked documents suggested that HDC had issued apartments from the Vinares project based on forged payment slips linked to SeaLife Global, a company involved in a previous housing fraud case.

In his resignation letter, Fazul maintained his innocence but stated that he was stepping down to allow the investigation to proceed. He was replaced by former construction minister Mohamed Mauroof Jameel the following day. On 24 December, the Privatisation and Corporatisation Board (PCB) lifted the suspension on HDC’s board.

The corruption scandal emerged amid growing public frustration over delays in the handover of flats and land awarded under the ‘Binveriya’ and ‘Gedhoruveriya’ housing schemes.