HDC receives sovereign guarantee for MVR 200 million loan

The government has issued sovereign guarantee for a MVR 200 million loan taken by the Housing Development Corporation (HDC) from Habib Bank.

The MVR 200 million loan was apparently taken for a shore protection project in K. Thilafushi.

The Parliament’s Public Accounts Committee convened for a meeting on Tuesday to discuss a letter sent by the Finance Ministry regarding the state of the country’s debt. It was as the contents of the letter were read that the sovereign guarantee issued for the loan became known.

It drew immediate outrage from lawmakers from the main opposition Maldivian Democratic Party (MDP).

South Hulhumale’ MP Dr. Ahmed Shamheed questioned why the government provided sovereign guarantee for a loan for a project which he said wasn’t directly linked to the welfare of the people.

“How did this happen? Why was sovereign guarantee issued for HDC to take a loan for shore protection in Thilafushi. There are many projects that are more linked to the people that the government has not provided guarantee for. I don’t know why the government provided guarantee for this project, whether this is related to the Fushidhiggaru project,” said one lawmaker.

Shamheed said that it must be investigated by the Anti-Corruption Commission (ACC).

But Central Hithadhoo MP Ahmed Azaan Marzooq, a lawmaker from the main ruling People’s National Congress (PNC), said that HDC needed sovereign guarantee because it was unable to secure a loan otherwise.

He said that it was because HDC had given away land from Hulhumale’ for free during the MDP administration.

Azaan added that the loan isn’t just for shore protection, but also to reclaim 150 hectors of land from Thilafushi.

He said that providing land for economic use will be beneficial to the people in the long term.