The Privatisation and Corporatisation Board (PCB) has suspended all members of the Housing Development Corporation (HDC) board, except its chairman Ahmed Naasif, following a criminal investigation by police into allegations of fraudulent land allocations under the “Binveriya” housing scheme.
The PCB also announced the suspension of HDC Managing Director Ibrahim Fazul Rasheed until further notice. The board’s decision comes amid mounting public pressure over alleged misconduct within the state-owned corporation.
In a brief statement, the PCB said the suspensions were effective immediately. Presidential spokesperson Helena Waleed, in a post on X, assured the public that all eligible applicants under the Binveriya scheme would receive their rightful land allocations.
The suspensions follow allegations that HDC facilitated the allocation of land worth MVR 450 million to approximately 50 ineligible individuals, including Fazul’s brother, Mohamed Fazeel Rasheed, Deputy Managing Director of the Maldives Water and Sewerage Company.
At a press conference on Wednesday, Fazul denied the allegations, insisting that all processes were followed lawfully. “Even for my own blood, I am doing everything by the book,” he said, attributing the controversy to a coincidence. However, Fazul avoided key questions about the allegations, appeared visibly agitated, and dismissed claims that fraudulent registries were issued by HDC.
The scandal has triggered widespread public criticism and protests, with demonstrators gathered outside HDC headquarters calling for Fazul’s arrest. Media reports indicate that leaked documents shared by the pseudonymous X account @HKurusee brought the allegations to light.
Investigations by the Maldives Police Service and the Anti-Corruption Commission are underway. However, critics fear the focus may shift to identifying whistleblowers rather than addressing the alleged fraud.
The controversy has drawn additional scrutiny following a fire last week that destroyed critical documents in three government ministries, including the Ministry of Housing, further fuelling suspicions about a possible cover-up.
The opposition Maldivian Democratic Party (MDP) has called for Fazul’s immediate dismissal and urged swift action against all those involved. In a statement, the MDP criticised investigative agencies for failing to act decisively on corruption in state-owned enterprises.
The government has yet to issue a detailed response to the ongoing crisis.