Drivers call ‘Taxi Nafaa’ loan a scam as cars remain unregistered for over a year

The Drivers Association of Maldives (DAM) has condemned the government’s handling of the ‘Taxi Nafaa’ loan scheme, calling it a scam after dozens of drivers were left paying off loans for vehicles that remain unregistered and unused more than a year later.

The loan scheme, originally launched by the previous administration under the SME Development Finance Corporation (SDFC), now known as SME Digital, was introduced on September 4, 2023. However, loan disbursements reportedly occurred after the current government took office, coinciding with the 2024 parliamentary elections.

At a press conference on Thursday, DAM representative Ibrahim Niyaz said many drivers who received loans under the scheme have yet to see or register the vehicles they were promised. Some drivers were issued loans of MVR 179,000 as recently as this week, he added.

“This is a massive scam,” Niyaz said. “The government should be held accountable. It’s unacceptable to burden drivers with debt for cars they haven’t received or been allowed to register.”

He accused state institutions of disrespecting and marginalizing taxi drivers, and said DAM had previously submitted a letter to the President outlining their concerns, but had received no response. “This is a government that has impoverished drivers and scammed the people,” Niyaz said, adding that the association is prepared to take legal action if necessary.

The controversy comes as the government prepares to launch a new taxi fleet in partnership with the Maldives Transport and Contracting Company (MTCC). Niyaz questioned where the MTCC fleet vehicles are being registered, given the delays faced by independent drivers.

Adam Saleem, one of the loan recipients, said 44 families are now trapped in debt due to the scheme. “We’re paying MVR 7,000 a month for loans, some even more, and many of us haven’t received a car,” he said. “SME Digital told us yesterday that even if we don’t have a car, we still have to repay the loan.”

“There’s no state institution willing to investigate this,” Saleem added. “We’ve been left with nothing but debt.”

Taxi drivers staged protests over the issue last year, but DAM says none of their concerns have been addressed to date.