Govt owes HDC nearly MVR 10B, report shows

The government owes the Housing Development Corporation (HDC) nearly MVR 10 billion, including unpaid dues for projects, land allocations, and rent reductions, according to a report submitted to the Parliament’s Public Accounts Committee.

Deputy Speaker and Dhiggaru MP Ahmed Nazim disclosed the figures during Tuesday’s committee meeting. The report states that HDC is owed MVR 4.3 billion for projects awarded by the government, MVR 1.6 billion for land allocated under the Binveriyaa scheme, and MVR 3.9 billion for the rent reduction of Hiyaa flats. While MVR 436 million has been paid, the remaining MVR 9.4 billion is yet to be settled.

In addition to government dues, HDC is owed MVR 976 million by 571 commercial customers as of August last year, excluding penalties. Businesses and the public also owe MVR 2.7 billion in rent.

Nazim said the corporation had suffered major financial losses due to the way land was allocated and rents were reduced under the previous administration.

Speaking at the meeting, HDC Managing Director Ali Zuhair said the company is working to strengthen its rules to recover unpaid dues from land allocated for commercial purposes. He noted that 19 cases have already been filed through the courts to recover outstanding payments, in line with parliamentary recommendations. Zuhair added that the government is also working to improve support for those facing financial hardship and confirmed that applicants with unpaid dues will be declared ineligible for future HDC projects.

HDC Chief Financial Officer Ahmed Samih said the corporation now updates customer credit data monthly with the Maldives Monetary Authority (MMA), and that recovery efforts have improved. Since March last year, HDC has recovered MVR 223 million from its commercial and residential portfolios. Samih added that the recovery rate is expected to increase by 41 percent this year.