Adhadhu understands that allegations of corruption and procedural violations since Ibrahim Fazul Rasheed’s appointment as the Managing Director of the Housing Development Corporation (HDC) had been earlier brought to President Dr. Mohamed Muizzu’s attention.

The allegations were submitted to President Muizzu last July by Ahmed Zuhoor, the former chairman of HDC. In a seven-page letter, Zuhoor detailed internal problems, corruption, and complaints from businessmen regarding the company.

Adhadhu has obtained a copy of the letter, which reveals that Zuhoor assumed the role during a period marked by pressing issues, including procedural revisions that led to land exchanges involving Thilafushi, the allocation of land in Hulhumalé to Fazul's wife, and increasing complaints from the business sector about HDC. Zuhoor stated that he focused his efforts on addressing these challenges.

The letter stated that when Zuhoor shared his concerns with Fazul, Fazul became angered and advised Zuhoor to resign if he was dissatisfied.

HDC criticized for corruption under Fazul’s leadership

Zuhoor's letter alleged that several major companies had expressed dissatisfaction with HDC’s conduct, and "Fazul Rasheed's primary objective appeared to be raising funds for his personal gain."

The letter highlights complaints such as:

• Bribes allegedly being solicited in exchange for benefits, including housing units and development opportunities.

• Instances where flats allocated to individuals were later confiscated.

• A growing perception that only those willing to pay bribes could secure favorable outcomes within HDC.

In the letter, Zuhoor accused Fazul of undermining the board by avoiding consultations and treating board members as yes-men to rubber-stamp his proposals.

Allegations of bribery and conflicts of interest

Zuhoor’s letter points to several instances of Fazul's direct involvement in questionable activities. However, decisions had been reached on the matters without these conflicts being declared, Zuhoor said. Such matters include:

• Fazul's wife, Zulfyna Rasheed, reportedly received land on a special basis.

• Five additional land transactions allegedly conducted in order to cover up the above

• Land was allocated to companies linked to Fazul, including Maldives Oil Company and Hyperloop, both of which were granted significant plots in Thilafushi.

• Other companies with suspected ties to Fazul were also granted land under questionable circumstances.

Zuhoor highlighted the lack of a proper environmnent to investigate these matters, stating that he was not allowed to form a committee to address complaints of conflicts of interest.

Additional concerns raised by Zuhoor

The letter outlined other suspicious activities under Fazul's management, including:

• Financial gains by companies entrusted with luxury housing projects.

• Advances issued for unverified loans and projects awarded at inflated costs.

• Contracts for installing 32 elevators in Hiyaa flats awarded for USD 18 million, a figure reportedly far above market rates.

• Millions of dollars in advances for projects like an auto center and a commercial spine despite unverified loans, issued after the board twice decided against proceeding with the transactions.

Zuhoor claimed that these projects collectively accounted for rumours of USD 15 million in misappropriated funds.

Zuhoor also stated that his letter only covered a fraction of the complaints he had received. He highlighted ongoing concerns about land allotments, flat confiscations, and exorbitant fees charged to extend land tenure. "The company is not headed in the right direction" he wrote.

Call for reform and investigation

Zuhoor urged the President to improve the state of the company and to ensure that boards consist of experienced professionals. He criticised the practice of rushing board agendas and warned that a lack of scrutiny could lead to the company’s destruction.

While these allegations were brought to the President's attention in July, no action was taken until the issues surfaced in the media. The police, the Prosecutor General’s Office, and the Anti-Corruption Commission (ACC) are now investigating the matter.