Parliament Reveals Over MVR 1.2 Billion in Unpaid Rent in Hulhumale’

The Housing Development Corporation (HDC) is owed over MVR 1.2 billion in unpaid rent for land it has leased, according to revelations at a Public Accounts Committee meeting in parliament today.

Committee Chair and Eydhafushi MP Ahmed Saleem described the situation as “a big problem,” criticising the lack of consistent efforts to recover the overdue fees. He highlighted concerns about the absence of monthly collections and questioned the measures HDC has taken to address the issue.

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“There are large companies that haven’t paid any fees since acquiring the land. These are businesses actively operating. Why has no action been taken against them?” he asked.

In addition to unpaid rent, Baarashu MP Ibrahim Shujau disclosed that MVR 195 million is owed to HDC from terminated contracts, bringing the total amount owed to MVR 2.2 billion.

“These amounts have accumulated over a long time. Prominent companies owe millions. We are talking about state-owned companies going bankrupt. Of course they will go bankrupt if land has been taken and money isn’t being paid for it,” Shujau remarked, proposing the need to clarify HDC’s debt recovery efforts.

Hithadhoo MP Ahmed Azaan Marzooq questioned the guidelines followed by HDC when granting payment extensions.

The committee members agreed to seek a detailed report from HDC on its recovery efforts and plans for action against defaulters. The Finance Ministry and other government institutions are reportedly working to address the issue of unpaid fees.

The committee’s inquiry underscores growing concerns about the financial management of state-owned enterprises, particularly as significant sums remain uncollected from active businesses.