Over MVR 1.2 billion owed to HDC by private companies

A total of over MVR 1.2 billion is owed to Housing Development Corporation (HDC) by multiple private companies, it was revealed today.

Speaking at the Public Accounts Committee of the Parliament, Baarah MP Ibrahim Shujau said that MVR 195 is owed for cancelled agreements.

Most of the funds owed to HDC, which manages Hulhumalé, are from private companies that were contracted by HDC to develop flats. According to information shared in the committee meeting today, there is over MVR 900 million pending.

"There are big, famous Maldivian companies which have not paid in millions for the lands. This is concerning," he said.

Central Hithadhoo MP Ahmed Azan posted a picture of the document detailing the companies and how much they owe to HDC, on social media today.

He also said that about MVR 900 million is owed to HDC by various private companies. As per the document, the largest sum owed is by NPH Development, which is MVR 213 million. The company is currently developing a luxury flat building in Hulhumalé.

Speaking at the Public Accounts Committee, Azan said that extensions were given to companies that are already well established in the business sector of Maldives.

"We have to look into the policies on which payment extensions were given to companies that have not paid for so long. Many times, it is the ordinary poor businesses are not even given an extension for not paying this rent," he said.

Azan expressed concern over big companies always getting protection in such situations, and it was decided to summon HDC officials to the committee to seek further information.

Most of these companies that owe HDC have flat construction agreements and have also sold flats, however, with some projects stopped midway.

Shujau said that while the topic of state owned enterprises going bankrupt is being discussed, one of the reasons for this situation is because of unpaid dues.

As such, he proposed to seek the details HDC's efforts to recover these funds, highlighting that HDC has been very lenient with the repayment.

"Many lots are showing as terminated. Especially many commercial units and lands have been terminated. [I] believe that HDC's cashflow issues will be resolved when these lands are leased within the policy to parties that are able to pay the rent," Shujau said.