Recent revelations about the Housing Development Corporation (HDC) have brought allegations of corruption and procedural violations to light, raising serious concerns about the company’s management under Ibrahim Fazul Rasheed. These issues, first highlighted in a detailed letter by the former HDC chairman Ahmed Zuhoor, were submitted to President Dr. Mohamed Muizzu in July. However, no action was taken until media reports forced the government to respond.
Zuhoor’s seven-page letter outlines numerous allegations of corruption, mismanagement, and unethical practices within HDC, including complaints from the business community. The letter paints a troubling picture of an organization plagued by bribery, conflicts of interest, and a lack of transparency. Zuhoor’s claims suggest that Fazul Rasheed prioritized personal gain over the company’s integrity and public interest.
Key Allegations
Bribery and Corruption:
- Allegations that bribes were solicited in exchange for housing units and development opportunities.
- Flats allocated to individuals were reportedly confiscated under dubious circumstances.
- A perception emerged that favorable outcomes were only accessible to those willing to pay bribes.
Conflicts of Interest:
- Fazul Rasheed’s wife, Zulfyna Rasheed, was reportedly allocated land in Hulhumalé under special arrangements.
- Companies linked to Fazul, including Maldives Oil Company and Hyperloop, received significant plots of land in Thilafushi.
- Other businesses allegedly connected to Fazul were granted land under questionable terms.
Mismanagement and Financial Misconduct:
- Contracts for luxury housing projects and other developments were awarded at inflated costs.
- A USD 18 million contract for installing elevators in Hiyaa flats was reportedly far above market rates.
- Advances worth millions of dollars were issued for unverified loans and projects that lacked proper oversight, contributing to rumors of USD 15 million in misappropriated funds
Procedural Irregularities:
- The board was reportedly undermined, with Fazul bypassing consultations and using members as mere rubber stamps.
- Board agendas were rushed, leaving little room for scrutiny or critical evaluation.
Calls for Reform Zuhoor’s letter emphasized the need for experienced professionals on HDC’s board and stricter oversight mechanisms to address the growing concerns. He warned that the company’s current trajectory could lead to its eventual destruction.
The ‘Binveriya’ Land Scandal Adding to the controversy, leaked documents suggest that land in Hulhumalé was allocated to individuals outside the ‘Binveriya’ list published in 2023 during the Maldivian Democratic Party (MDP) administration. This includes Fazul’s elder brother, Mohamed Fazeel Rasheed, deputy managing director of Male’ Water and Sewerage Company (MWSC).
President’s Inaction Despite receiving the letter in July, President Muizzu failed to act on the allegations for five months. Critics argue that Fazul’s position has been protected due to his alleged influence over the President. Claims have surfaced that Fazul possesses audio recordings implicating Muizzu and has been paying commissions to the President from corrupt deals. This has cast doubt on the administration’s “zero-tolerance” policy on corruption.
Ongoing Investigations The police, Prosecutor General’s Office, and Anti-Corruption Commission (ACC) have launched investigations into the matter. However, skepticism remains over whether these investigations will lead to meaningful accountability.
The allegations against Fazul Rasheed and the inaction of President Muizzu raise troubling questions about governance and accountability in state-owned enterprises. The public awaits concrete steps to address these issues and restore trust in HDC’s operations.
