HDC in Crisis: Fazul Suspended Amid Forged Land Documents Scandal

In a scandal that has shaken the Housing Development Corporation (HDC) and raised questions about the integrity of government housing schemes, Managing Director Ibrahim Fazul has been suspended amid allegations that his brother, Mohamed Fazeel, attempted to acquire land in Hulhumalé under dubious circumstances.

The controversy revolves around the government’s Binveriyaa scheme, designed to provide land for eligible Maldivians. The allegations, brought to light through leaked documents and social media uproar, suggest that Fazeel, despite being ineligible for the scheme, attempted to secure a plot of land through forged agreements.

A Timeline of Events

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The controversy began in June 2024, when two individuals submitted applications to construct a boundary wall on the same plot of land in Hulhumalé. The conflicting claims raised concerns within HDC, prompting the corporation to seek clarification from the Housing Ministry. On 15 August 2024, the ministry confirmed that neither claimant was listed as a beneficiary under the Binveriyaa scheme.

The issue resurfaced in December 2024, when leaked documents appeared on social media, alleging that Fazeel had acquired the land through forged agreements. The revelations led to a police investigation and an official visit to HDC headquarters to collect evidence.

Inside HDC

HDC, which oversees housing developments in Hulhumalé, has come under intense scrutiny over its handling of the irregularities. The corporation stated that it identified the discrepancies internally and promptly reported the matter to the Housing Ministry for verification. Fazul, speaking at a press conference before his suspension, defended HDC’s actions and denied personal involvement, though he admitted to being aware of the issue as it unfolded.

Despite his explanations, Fazul’s responses left several questions unanswered. Journalists pressed him on the timeline and his level of knowledge regarding the matter, but he refrained from providing detailed answers, further fuelling speculation about HDC’s role in addressing the irregularities.

Fallout and Suspensions

The Privatisation and Corporatisation Board (PCB), the body responsible for overseeing state-owned enterprises, acted decisively following the revelations. On 17 December 2024, it announced the suspension of Fazul and all HDC board members except Chairman Ahmed Nasif.

The suspension of HDC’s leadership illustrates the gravity of the situation. The PCB has pledged full cooperation with the ongoing police investigation, which seeks to uncover how land intended for eligible citizens was allegedly allocated to ineligible individuals.

A Family Affair?

Central to the scandal is the relationship between Fazul and Fazeel. The latter, Deputy Managing Director at the Maldives Water and Sewerage Company, was reportedly declared ineligible for the Binveriyaa scheme by the previous administration. Yet documents leaked online suggest he successfully secured a plot of land through questionable means.

Opposition politicians have seized on the controversy. The parliament is currently in recess, but the matter has been moved to urgent status by the MDP MP representing the North Galolhu constituency, Mohamed Ibrahim (Kudu). The scandal has also sparked widespread public debate, with many questioning the transparency and fairness of land allocation processes.

Government’s Assurance

Presidential Spokesperson Heena Waleed sought to allay public concerns, stating that the rights of landowners under the Binveriyaa scheme would not be violated. However, her assurances have done little to quell growing scepticism over the government’s ability to ensure fairness in housing allocations.

A Systemic Issue?

The controversy has not only cast a shadow over HDC but also exposed broader vulnerabilities in the administration of housing schemes. The apparent ease with which forged documents allegedly facilitated land allocations raises concerns about oversight mechanisms and the potential for systemic abuse.

As investigations continue, the case serves as a stark reminder of the need for transparency and accountability in government processes. For many Maldivians, the scandal is not just about one man or corporation; it is about restoring trust in the institutions tasked with shaping the nation’s future.

Holding Key Players Accountable Amid Scandal

The Prosecutor General Abbas Shareef has now directed the police and the Anti-Corruption Commission (ACC) to conduct a criminal investigation into alleged irregularities in both the Binveriyaa scheme for land allocation and the Gedhoruveriyaa scheme for flat allotment in the Malé region. The directive includes:

  • Investigating the process of form acceptance, recipient determination, and land and flat allocation.
  • Identifying individuals involved in any criminal acts and forwarding charges to the Prosecutor’s Office.
  • Providing weekly updates on the investigation’s progress and expediting the process.

With police investigations ongoing and the PCB pledging full cooperation, the coming weeks will be critical in determining the extent of wrongdoing and the accountability of those involved. For the Maldives, the case has become a litmus test for governance, with implications that could extend far beyond Hulhumalé’s shores.

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