HDC owed MVR 1.2 billion from leased land plots

Housing Development Corporation (HDC) is owed MVR 1.2 billion from land plots leased to various parties for business purposes.

The unpaid dues were revealed during a meeting of the Parliament’s Public Accounts Committee held on Monday.

Members of the Committee expressed discontentment over a list submitted to the Committee detailing the unpaid dues to HDC.

In this regard, the Committee’s Vice Chairperson, Eydhafushi MP Ahmed Saleem highlighted MVR 1.2 billion from unpaid dues to HDC as unpaid rent with respect to land plots leased to various parties.

He expressed concern as it was unclear what efforts were undertaken to recover what percentage of the unpaid dues while stressing the non-collection of dues owed to the state on the monthly basis as a huge concern.

Saleem added that Finance Ministry and other government authorities were undertaking efforts to generate revenue because funds owed to the state have not been recovered.

“This includes huge companies, known to me even, that have not paid rent since the day the land plot was leased. Huge business corporations. Why has no action been taken in this matter?” he questioned.

PNC’s Baarah MP Ibrahim Shujau highlighted that HDC was also owed MVR 195 million with respect to contracts that have been nullified. With the MVR 1.2 billion in unpaid rent, Shujau detailed that unpaid dues to HDC totaled at MVR 2.2 billion.

“These are amounts that have continued to fall from years ago. Huge and prominent businesses that are active have unpaid dues in millions for land plots. This is concerning. We are talking about state-owned companies being debt-ridden. Of course they will, if such huge land plots are leased without payment,” he said.

Shujau proposed to inquire from HDC regarding efforts that has been undertaken by the company and efforts that are currently being undertaken by the company to recover the money.

The proposal was backed by PNC’s Central Hithadhoo MP Ahmed Azan who underscored that HDC had postponed payment of rent for some parties. In this regard, he detailed that the easements were granted to widescale businesses operating in the Maldives.

“We need to inquire what policy is adhered to in granting payment extension. This should be done fairly, if done. There is no reason to grant payment extension to some parties and not others over non-payment of rent,” he said.

Members of the Committee unanimously approved to instruct HDC to share efforts they have undertaken to recover the unpaid dues and measures proposed by the company in the future if they unable to recover the money.