Adhadhu has learnt that the Hajj Corporation's city hotel in Kaafu Maafushi was announced with the approval of the President's Office.
Finance Minister Moosa Zameer told the the parliament in December that it was not right for the Hajj Corporation to enter the tourism business.
He said there were several state-owned companies that could invest in tourism, but advised against a fund management company operating a hotel.
But he said better results can be obtained if Hajj Corporation invests in a state-owned company that could operate the hotel.
Meanwhile, Islamic Minister Mohamed Shaheem told Mihaaru news that he had not been consulted about the project.
He said he had been tasked with the affairs of the Hajj Corporation, but was not informed when an announcement was made seeking a hotel developer.
Hajj Corporation announced plans to launch a tourism business when its Managing Director Mohamed Shakeel was summoned to a parliament committee in November.
The hotel is being built under the Maafushi Islamic Tourism Pvt Ltd, a joint venture between the Hajj Corporation and Maafushi Council. The shareholders of the company are Hajj Corporation and Maafushi LAC Ltd.
Some reliable sources told Adhadhu that the project was ongoing with written approval from the President's Office.
"So no government minister should be concerned about it," a government official told Adhadhu.
Hajj Corporation plans to build a 2000-bed hotel in Maafushi. Interested developers must register with the Hajj Corporation before August 13.
They must pay a one-time, non-refundable registration fee of MVR 30,000 or USD 2000 while the bid security amount is MVR 800,000.
