Zuhoor makes major allegations against Fazul

Former Chairman of Housing Development Corporation (HDC) Ahmed Zuhoor has made several major allegations against current Managing Director of HDC Ibrahim Fazul Rasheed.

Zuhoor raised these concerns in a seven page letter addressed to President Dr Mohamed Muizzu, which he sent in July. In the letter, he spoke of many instances of corruption within the corporation. Zuhoor alleged that things are only done within HDC for people who are willing to pay outside the system.

Zuhoor had accepted the post of Chairman on a special request from the President. However, he was dismissed in May. Following this, he sent this letter of concerns to the President.

The letter made many allegations against Fazul. While the issue of land being allocated to people who had not made it on to the recipients list had come to light yesterday, Zuhoor had already warned the President that this was occurring.

The letter, of which Mihaaru News has a copy, states, "I would like to bring to your notice that businesses and the public are repeatedly saying that the only way to get something done through HDC is by offering money".

In the letter sent on July 1, Zuhoor said that what he had learned through several meetings with various businesses and members of the public is that Fazul's sole aim was personal enrichment. He claimed that Vinares flats were also granted to those who gave money, and had also heard that contracts to build flats and and land were being issued after taking various amounts of money in return.

Zuhoor states that Fazul had not declared many cases in which he had a personal stake to the members of the board. Details of this, nor adequate time is given, when the agenda is sent. He further said that Fazul had restructured posts within the corporation without deliberation with the board, leading to the office being unable to operate.

"The truth is, he just wants the board members to say yes to whatever is placed on the agenda. Neither the chairman, nor the members, are given ample time or opportunity to research the matters placed on agenda. The MD makes some members say that what he wants are instructions from the President, and does not allow the Chairman to voice his view," the letter reads.

Some private companies are also mentioned in Zuhoor's letter.

Some of the things listed in the letter that Fazul had done without declaring to the board which involves conflict of interest include;

- Allowing payments to be made in five year installments for a land plot that Fazul's wife was purchasing

- Decision to swap a land plot owned by a company he has stakes in, and granting them a 15,000 sqft land plot

- Giving three land plots from Hulhumale' in exchange for West Park with no consideration towards due policies

Zuhoor also said that after issuing a five hectare land to the company contracted to build RasMale', HDC had also given them millions of dollars.

Zuhoor further alleged that USD 5 million had been taken from five companies to build luxury housing projects in a manner which allows USD 1 million to be taken from each project, and claimed this had been done in Fazul's personal interest.

He went on to allege that Fazul had taken a plot of land from MWSC and given it instead to a company he holds stakes in. This was done by proposing it to the board without declaring the conflict of interest, he said.

Zuhoor also noted that;

- the building of lifts in Hiyaa Flats had been contracted at USD 18 million, which is several times higher than the market rate

- several million dollars were issued as advance to build the auto centre before the loan was approved

- advance payment was issued before loan was arranged to build commercial spine

Zuhoor stated that he had diligently tried to reform the wrongdoings within HDC, even to a small limit, but that these efforts had only led to his dismissal.

Zuhoor further said that he had requested for an appointment with the President, which he had failed to receive even up to the point where he was dismissed.

Fazul did not respond to calls when Mihaaru News attempted to contact him regarding these allegations.