The Anti-Corruption Commission (ACC) launched an investigation into allegations of corruption in the development of police housing, raiding the offices of Polco yesterday. A police spokesperson confirmed to the media that ACC officers were present at Polco’s office, located at Iskandharu Koshi, as part of the inquiry.
The probe follows an audit report from the Auditor General’s Office, released last week, which revealed that the “Blues Housing” apartment project had resulted in a financial loss of MVR 355 million, despite over a billion Rufiyaa being spent over a decade. The report highlighted multiple irregularities, including frequent amendments to agreements with contractors and payments made under different names instead of for completed work.
The Audit Office recommended that investigative authorities, including the ACC, take action against those involved in the transactions. The report further noted that delays in completion and certain actions had led to financial losses for the government while directly benefiting the contractor. The board of Polco was also criticised for failing to prevent these issues, with calls for them to be held accountable.
A Troubled History of the Police Flats Project
Construction of the police housing project began in 2013 under a contractor financing agreement with Noomadi. However, due to political and financial challenges, the agreement was cancelled in January 2016. The project was then handed over to Island Experts, but the company went bankrupt during the Covid-19 pandemic, leading to yet another cancellation.
A third contractor, Amin Construction, was later brought in, with the project initially scheduled for completion in 2022. However, the deadline was extended to allow more time for completion. Despite the setbacks, police personnel moved into the 361 three-bedroom apartments last year.
With the ACC now investigating the case, scrutiny over the financial management and decision-making surrounding the project is expected to intensify in the coming weeks.
