Urbanco seeks advice over worked halted by ACC

Nov 9, 2023, 3:09 AM
Urbanco Managing Director Athif. -- Photo: President's Office

Urbanco Managing Director Athif. -- Photo: President's Office

Hulhumale' developer Urbanco has decided to seek advice from the Privatization and Corporatization Board (PCB) and parliament's state-owned enterprises (SOE) committee after much of the company's work stalled over a corruption probe.

On October 31, the Anti-Corruption Commission (ACC) ordered the government-owned company to suspend new projects, transactions and bidding processes after a complaint was filed with the watchdog.

These include:

  • Leasing land from Hulhumale' to foreign parties
  • Plans to seek expressions of interest (EOIs) to carry out projects
  • Transactions related to land sales and long-term leases
  • Work carried out under joint ventures
  • Signing agreements related to projects.

The orders have undermined the rights of both Urbanco and its customers and posed serious financial challenges, the corporation said in a letter sent to parliament.

As the company conducts most of its work through bidding processes, the suspension of EOIs has caused losses, Urbanco said.

The entire company's work has come to a standstill because the ACC issued the order without referring to specific projects or work, Urbanco added.

The ACC has also stopped the long-term lease of the Farukolhufushi area of Hulhumale' phase two.

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