The Auditor General office's report has stated that the Housing Development Corporation (HDC) has experienced a loss between MVR 14.85 billion and MVR 15.93 billion due to the Hulhumale' Phase 2 and Hulhumale' Phase 3 plots that were allocated under the "Binveriya" scheme that took place during former President Ibrahim Mohamed Solih's government.
The report that assessed the financial losses reads that under the Binveriya scheme, HDC released 2,841,400 square feet of their property. In assessing the losses, the report states that plot sales would be calculated as per market rates.
"If HDC sells the government-issued plots at Hulhumale' Phase 2 and Hulhumale' Phase 3 under the Binveriya scheme as per market rates via a competitive bid for gainful revenue, we estimate there would be a price between MVR 14,847,279,200 and MVR 15,932,847,200," as was written in the report.
According to the report, the 188 plots that were allocated to 473 people in Hulhumale' Phase 2 under the Binveriya scheme are "beachside plots" and can be sold as such. As the plots cover 347,600 square feet, it will come to a total sale of MVR 2.5 billion if sold at the market rate.
521 plots totaling 909,250 square feet in Hulhumale' Phase 2 have been allocated to another 1,166 individuals. The audit report estimates that, if sold at the market rate, HDC would receive MVR 4.9 billion.
669 plots totaling 1,584,550 square feet in Hulhumale' Phase 3 have been allocated to 2,481 individuals. The audit report estimates that, if sold at the market rate, HDC would receive MVR 8.4 billion.
As per the report, the price of the plots were estimated by comparing the prices according to the plots allocated under the Binveriya scheme as per a bid basis by HDC between 2022 and 2024.
The report further states that bringing plots of value at no cost under the names of 4,120 individuals will bring about negative effects to state expenditure due to the vast expenses incurred by HDC.
"It is apparent that the plots under the Binveriya scheme were allocated without conducting proper research into how it would affect state finances," as was written in the audit report.
The audit shows that the state spent MVR 3.8 million per person who were allocated plots under the Binveriya scheme. This is a 70 percent increase in the cost of a flat under the Hiyaa project and a 63 percent increase in the cost of a flat under the Gedhoruveriya project.
