PCB lifts suspension on HDC’s board

The Privatization and Corporatization Board (PCB) has lifted the suspension on the board of directors of the Housing Development Corporation (HDC).

The PCB had suspended the entire board of HDC, except for chairman Ahmed Nasif, on December 19 – a day after a flurry of documents leaked on social media raised allegations of corruption against the corporation in the award of housing, including land and apartments from Hulhumale’.

Nine board directors were suspended, including the corporation’s then-managing director Ibrahim Fazul Rasheed. They are:

• Azhar Abdulla Saeed, director
• Ibrahim Yoosuf Fulhu, director
• Muhammad Visham, director
• Ula Mohamed Rasheed, director
• Arif Abdul Samad, director
• Abdulla Naajil, director
• Mohamed Waheed, director
• Fathmath Mizna Ali, director
• Yoosuf Waheed, director

In a statement on Tuesday, the PCB announced that it ended the suspension on the board following the appointment of a new managing director to the corporation.

ހައުސިންގ ޑިވެލޮޕްމަންޓް ކޯޕަރޭޝަންއަށް އައު މެނޭޖިންގ ޑިރެކްޓަރެއް އައްޔަންކޮށްފައިވާތީ، އެ ކުންފުނީގެ ޑިރެކްޓަރުންގެ ބޯޑުގެ މެންބަރުން ސަސްޕެންޑް ކުރުމަށް ނިންމި ނިންމުން މިއަދުން ފެށިގެން ނިމުމަކަށް ވަނީ ގެނެވިފައެވެ.

— Privatization & Corporatization Board (@pcb_gov) December 24, 2024

Fazul, who was appointed as the managing director of state-owned HDC in November 2023, resigned from the post on December 21, following his implication in allegations of corruption in the award of housing from Hulhumale’.

A flurry of documents leaked on social media on December 18 appeared to show that multiple people were given land from Hulhumale’ under the ‘Binveriya’ scheme despite not being on the list of recipients released in 2023 during the Maldivian Democratic Party (MDP) administration.

This includes Fazul’s older brother Mohamed Fazeel Rasheed, the deputy managing director of Male’ Water and Sewerage Company (MWSC).

In a press conference held on Wednesday night – as angry protestors surrounded the HDC headquarters in Hulhumale’ – Fazul denied the allegations against HDC, insisting that the corporation has no involvement in issuing plots under the ‘Binveriya’ scheme.

He also played off the implication of his brother as a mere “coincidence”, and insisted that the situation does not pose a conflict of interest.

Fazeel, as well as Fazul and the entire board of HDC, except for chairperson Ahmed Nasif, and at least four top officials in the corporation’s management, were placed under suspension the next day. The authorities also imposed a travel ban on at least 24 officials, including Fazul and Fazeel.

Fazul tendered his resignation on December 21, after more documents leaked on social media suggesting multiple individuals were  issued apartments from Vinares by the HDC based on forged payment slips to SeaLife Global after it was decided to compensate victims of the SeaLife scam with the apartments.

In his resignation later, Fazul maintained his innocence but said he decided to resign to “make for the investigation” into the case.

He was replaced with former construction minister Mohamed Mauroof Jameel the next day.

Multiple employees have been dismissed from the HDC in the wake of the allegations – which are being investigated by both the police and the Anti-Corruption Commission (ACC).

The police raided Fazul's private residence on Monday night, and seized evidence, including several electronic devices.

The corruption scandal comes amid mounting public frustration over the delay in handover of flats and land awarded under the 'Binveriya' and 'Gedhoruveriya' housing schemes.