President says he did not receive letter accusing Fazul of corruption

President Dr. Mohamed Muizzu said on Sunday that he did not receive a letter he was reportedly sent by Ahmed Zuhoor, the former chairperson of Housing Development Corporation (HDC), back in July, alerting him to serious allegations of corruption against the corporation’s then managing director Ibrahim Fazul Rasheed.

Documents leaked on social media on Wednesday 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 included his older brother Mohamed Fazeel Rasheed, the deputy managing director of Male’ Water and Sewerage Company (MWSC).

Soon after, multiple news outlets reported that Zuhoor wrote a seven-page letter to President Muizzu in July in which he highlighted allegations of corruption against Fazul.

Speaking to reporters outside the President’s Office on Sunday afternoon, President Muizzu said he did not receive the letter in question.

He said that he would have taken action if he had.

“I want to make it clear that I will not hesitate to stop acts of corruption or other irregular activities,” he said.

President Muizzu said that he has directed relevant authorities to take necessary action in all such matters that have come to his attention to date.

He said that he directed the police to conduct a criminal investigation as soon as he became aware of the corruption allegations against HDC.

He said that he is happy the case is being investigated.

“I do not appoint people to posts so they can steal. So that they can engage in corruption. Or so they can engage in irregular activities. I only ask that they serve the people with honesty, integrity and sincerity. Therefore, I will remove them from that position if I feel this is getting impeded or they are acting otherwise. I will put a stop to it,” he said.

President Muizzu called on independent institutions to investigate any and all acts of corruption.

The leaked documents include a letter sent by HDC to the Housing Ministry dated July 24, seeking to verify the owner of Hulhumale’ lot number 20768 – after the corporation received applications from two different individuals – one of them Fazeel - who claimed to have received the plot under the ‘Binveriya’ scheme and asked for permission to build boundary walls around the property.

In response to the letter as well as other similar inquiries, the Housing Ministry wrote back on August 15 that the ‘Binveriya’ database does not show the individuals mentioned in HDC’s letters to have submitted applications under the scheme.

The Housing Ministry also said that Hulhumale’ lot number 20768 as well as another lot – 20821 – had not been awarded by the ministry to anyone. These two plots are claimed by a total of six people.

The final list of recipients of the ‘Binveriya’ scheme publicized in August 2023 lists Fazeel as an applicant, but also shows he was deemed ineligible as he had already been awarded housing under a different social housing scheme.

However, the leaked documents show Fazeel has a land registry for the plot, signed by Housing Ministry’s director general Ahmed Vishan Naseem and dated September 11, 2023.

The case is the subject of a criminal investigation by both the police and the Anti-Corruption Commission (ACC).

Fazeel, as well as the entire board of HDC, except for chairman Ahmed Nasif, and at least four top officials in the coorporation's management, were placed under suspension on Thursday. At least 15 officials have since been dismissed.The authorities have also imposed a travel ban on at least 24 officials, including Fazul and Fazeel.

In a press conference held on Thursday 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.

Fazul tendered his resignation on Saturday night - mere hours after more documents leaked on social media appearing to show that 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.

Former construction minister Mohamed Mauroof Jameel was named by the Privatization and Corporatization Board (PCB) as his replacement on Sunday.

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