The Housing Development Corporation (HDC) has released MVR 77 million to complete the reclamation of the first 27 hectares of land under the "Rasmale'" project that President Dr. Mohamed Muizzu pledged to carry out without spending a single cent from the state budget.
The move came after the contract for the Rasmale' land reclamation was cancelled due to the company's failure to secure financing.
The project that President Muizzu himself said would be completed without interruption in eight months was only carried out for a short period. The reclamation of the lagoon had been undertaken by Sri Lanka's Capital Marine and Construction Company (CMCC).
The reclamation of the Fushidhiggaru lagoon remained stalled since February. But work resumed on July 1 with the disbursement of more than MVR 77 million.
After the project stalled over CMCC's failure to raise the required funds, the government revealed on May 30, 2024 that it was exploring other options for continuing the project. No details have been provided since then.
Adhadhu has confirmed from a reliable source with close ties to Raju as well that Fushidhiggaru reclamation resumed after a large lump sum payment was made to Raju. However, the source did not say how much that was.
"The money was received in the past week. That's why the reclamation started. Raju's work is done when site J is done," the source said.
Adhadhu confirmed through a different credible source that Raju was paid MVR 77 million to complete reclamation of site J together with the revetment and coastal protection work. However, neither HDC nor the government has revealed the payment to Raju.
These funds were released by HDC in direct violation of President Muizzu's pledge. HDC is a 100 percent state-owned company that operates with financing from the government budget. The President and senior government officials stood at various podiums and said that no government funds would be spent on the project.
"In any case, the Rasmale' project has started and is now proceeding. That project is proceeding in a way that the Maldivian state doesn't have to spend any money at all. God willing, we will continue the project that way and complete it. Believe it," the President said on December 20, 2023 at the Kangathi awards ceremony.
Work on reclaiming 1,153 hectares from the 1,280-hectare lagoon south of Male' began on December 18, 2023.
President Muizzu decided to carry out the project after challenging the Parliament's omission of MVR 400 million allocated for the project in this year’s budget. The project was launched suddenly without any transparency. The opposition as well as many members of the public expressed concern over it at the time.
The Fushidhiggaru land reclamation started with the contractor to be awarded 10 hectares from Hulhumale' and 60 hectares from the land to be reclaimed from the lagoon.
The payment of MVR 77 million for the Fushidhiggaru reclamation was made after the government started implementing stringent cost-cutting measures over severely constrained public finances.
