Government owes HDC MVR 10 billion: report

The Maldivian government reportedly owes the Housing Development Corporation (HDC) MVR 10 billion for various projects and land leases, along with an additional MVR 1 billion from SOEs, HDC said today.

HDC revealed the figures in a report submitted to Parliament’s Public Accounts Committee.

Deputy Speaker and committee member Ahmed Nazim disclosed the figures, stating that MVR 4.3 billion is owed directly to HDC, including MVR 1.7 billion for land allocated in Hulhumale' under the previous government’s Binveriyaa Scheme, and MVR 3.9 billion following the government’s decision to reduce rent for Hiyaa and Vinares flats.

“This means the government has recorded MVR 10 billion as overdue to HDC,” Nazim said.

In addition, HDC is owed MVR 976 million from over 500 commercial customers as of August, excluding penalty fees. Including rent from businesses and social housing, the total outstanding debt reaches MVR 2.7 billion.

HDC has recovered MVR 223 million so far in its efforts to collect the overdue amounts.

HDC Managing Director Ali Zuhair told the committee that the company is working to strengthen its policies and improve collection of overdue payments.

“If we have an overdue, it will be difficult for them to do business. They will struggle to continue unless the overdue is settled,” he said.

Zuhair added that HDC is collaborating with banks and the Maldives Monetary Authority to address overdue payments, including registering tenant credit data with the MMA, a process that began three months ago and is showing progress.

The company also intends to coordinate with the government to resolve cases where the public has unpaid rent.

Hanimaadhoo MDP MP Abdul Ghafoor Moosa, raised concern over the scale of the government’s debt to HDC and said that the corporation’s operations could be jeopardized without the owed funds.

Nazim noted that the outstanding debt reflects policies of the previous administration under former President Ibrahim Mohamed Solih.