POLCO Corruption: The state to take illicitly obtained lands, property

A sub committee of the Parliament's public accounts committee has decided to proposed that the state acquire any land, property and goods purchased from illicit funds obtained through the Police Corporative Society (POLCO) apartment building development project.

According to audit reports, the apartment building developed by POLCO in Hulhumalé was constructed at a cost of MVR one billion, which is a loss of MVR 355 million.

Following this revelation, the public accounts committee of the parliament decided to look into the matter further, and put together a subcommittee dedicated to the case.

After further examining the major issues of fraud highlighted in the audit report, the sub-committee shared its findings with the main committee on Wednesday. Deputy Speaker of the Parliament and Dhiggaru MP Ahmed Nazim said the subcommittee's report includes issues identified in agreements made by POLCO with three different companies in implementing the project.

The tree companies are Noomadi, Island Experts and Amin Construction, Nazim said.

The construction of the 13-storey, 3 tower building in Hulhumalé Phase 1 was first awarded on June 19, 2013 to Noomadi at the price of MVR 580.2 million, to be completed and handed over within 24 months. At the time, 300 housing units were to be developed. However, the number changed multiple times and it was decided to build 361 units instead.

When Noomadi failed to complete the project, it was handed over to Island Experts. The agreement with Island Experts also had to be cancelled after they failed to finish the project as well.

The project was then awarded to Amin Construction in 2021.

Nazim said the police board made made decisions which saw the release of millions to Island Expert as illicit benefit.

This included a payout of MVR 129.5 million and and USD 2.7 million to Island Experts for cancelling the agreement on a mutually agreed basis. Nazim said these funds have still not been recovered by POLCO.

He said the funds given by POLCO was used by the company to acquire a land plot in Hulhumalé Phase 1 and lay out the concrete work for a 17 storey building there. One of the company's directors also used some of the funds to buy a land in Hulhumalé as well, he said.

Nazim also revealed that all the documents proving the fraudulent transactions have been recovered.

“We can know very clearly that this is an asset created using POLCO's money,” he said.

"That these assets in Hulhumalé were created with the state's funds. So, in this report we are recommending that the government take the necessary steps to take over these assets."

Nazim said the report also includes details of the individual police officers involved in payments issued through POLCO, both in accordance and in violation of the agreements.

“We have found enough to hold individual police officers accountable,” he said.

Nazim said the committee report would also include action to be taken against the officers negligent in the matter.

Before sharing the report with the main committee, another meeting of the sub-committee is scheduled for Monday to meet with POLCO officials and seek their comments, he said.

After that, the committee aims to pass the report before the parliamentary session goes on recess, he said.

It also came to light recently that while some of the vehicles brought by POLCO between 2014-2017 for the police blue housing project have disappeared, a total of MVR 3.8 million was spent on 24 vehicles during the project. The Parliament has also asked POLCO to provide information on some of the vehicles.