Parliament pushes ACC probe into POLCO housing corruption

The sub-committee of Parliament's Public Accounts Committee, currently reviewing the special audit report concerning the Police Corporative Society (POLCO) housing project, has proposed that the report be submitted to the Anti-Corruption Commission (ACC) for an investigation into alleged corruption pertaining to the construction of residential flats for police personnel by POLCO.

The sub-committee unanimously decided to present the report to the main committee without any alterations.

Within its report, the sub-committee recommended the establishment of a Serious and Complex Financial Section within the ACC to address this matter, given that the accused individuals include current police chiefs and the potential for a serious criminal investigation.

Ahmed Nazim, Deputy Speaker of Parliament and head of the committee examining the POLCO housing project's special audit report, stated that Finance Minister Moosa Zameer had affirmed the authorization for establishing a Serious and Complex Financial Section within the ACC.

Nazim indicated that while he ultimately opted to recommend an ACC investigation, his initial consideration was the establishment of a presidential commission to examine the case.

The sub-committee further resolved to direct the Ministry of Homeland Security to initiate proceedings against former and current police personnel involved in the POLCO project for illicit enrichment, the granting of undue favors, and causing financial detriment to the state.

Additionally, during the Monday meeting, a decision was made to compile a comprehensive list of construction vessels issued without duty for various projects and to request Customs to furnish this report to the Public Accounts Committee.

Although the government reportedly identified the total financial loss incurred in this case, the committee refrained from disclosing the exact amount. However, the committee resolved to instruct the Attorney General to recover the sum.

Following a visit by members to the POLCO towers, the committee's report highlighted the incomplete status of the structures. The report specifically noted that two of the three elevators in the towers were non-operational, the fire alarm system was malfunctioning, three towers lacked CCTV surveillance, and none of the towers possessed access control systems.

Consequently, the committee has decided to request the Ministry of Finance to allocate the necessary funds for the completion of the towers.

Even if the sub-committee approves the report, relevant agencies will only be informed and advised upon the main committee's subsequent approval and the eventual parliamentary endorsement of the report.

According to an audit report released in January, POLCO's housing project, costing over a billion Rufiyaa, resulted in a loss of MVR 354.7 million to the state due to corruption and mismanagement. The audit report therefore advocated for action against the then-board of directors of POLCO.

As of the audit date, a total of MVR 1.06 billion had been expended on the project, equating to MVR 1,851 per acre.

The audit report indicated that, based on information obtained from the Tender Evaluation Board of the Ministry of Finance, private companies typically undertake such construction work at a price ranging between MVR 1,300 and MVR 1,500 per acre.

However, the audit report observed that the project incurred an additional cost of between MVR 240.1 million and MVR 354.7 million, attributing this discrepancy to POLCO's incompetence and suspected corrupt practices.

Three residential towers, comprising a total of 361 flats and 20 penthouses, were constructed for the police in Hulhumale. Construction commenced in 2013, with the flats being completed and occupied last year.