POLCO housing fraud inquiry deepens in closed session

The sub-committee of the Parliament's Public Accounts Committee, tasked with reviewing the special audit report pertaining to the Police Cooperative Society (POLCO) housing project, convened in a closed session. 

This measure was implemented due to the involvement of certain active police personnel and their families in the ongoing inquiry regarding residential flats constructed by POLCO for police staff.

Prior to the committee meeting on Tuesday, the committee chairman and parliamentary Deputy Speaker, Ahmed Nazim, stated that the committee had acquired information from the courts, the Anti-Corruption Commission (ACC), and the National Integrity Commission to validate the data submitted by whistleblowers.

Nazim deemed it necessary to maintain the confidentiality of the committee proceedings, as the received information encompassed details concerning senior officers implicated in the case, their family members, and one of their children.

On Monday, the sub-committee resolved to propose the establishment of a Serious and Complex Financial Section within the ACC to investigate the matter, given that the accused individuals include current police chiefs, potentially leading to a significant criminal investigation.

Concurrently, the sub-committee decided to instruct the Ministry of Homeland Security to take action against former and current police officers involved in the POLCO project for instances of unjust enrichment, the conferral of undue benefits to others, and the resultant damage 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.

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.