Former HDC Chairman Warned President About Widespread Corruption in State-Owned Company

The former chairman of the Housing Development Corporation (HDC), Ahmed Zuhoor, raised serious allegations of corruption within the state-owned company, it has been revealed.

In a detailed seven-page letter sent to President Dr Mohamed Muizzu in July, Zuhoor outlined questionable practices and accused HDC’s Managing Director, Fazul Rasheed, of engaging in corruption to further personal interests.

advertisement

Fazul and his brother Fazeel Rasheed, is currently at the center of a scandal involving forged documents used to claim ownership of land plots in Hulhumale under the Binveriyaa scheme. 

Zuhoor, who was appointed as HDC’s chairman at the request of President Muizzu, was removed from his position in May. 

In his letter, he claimed that bribery was necessary to expedite processes within HDC. “I must inform you that there are repeated warnings from businessmen and the public that you need to offer bribes to get anything done through HDC,” he stated. 

Zuhoor also alleged that Fazul Rasheed prioritised personal enrichment over the company’s responsibilities, citing examples of questionable land allocations and financial irregularities.

Allegations Against Fazul Rasheed

Zuhoor accused Fazul of making significant decisions without the approval of HDC’s governing board. He alleged that:

• Instalment payment plans were granted for the sale of land by Fazul’s wife.
• A 15,000 square feet plot was approved for a company in which Fazul holds a stake.
• Three plots of land were allocated as compensation for West Park without board approval.

Zuhoor further claimed that Fazul awarded a five-hectare plot of land and several million dollars to CMC, the company contracted to reclaim Rasmale. Additionally, five companies involved in luxury housing projects allegedly received funds to advance Fazul’s personal interests.

Mismanagement Allegations

The letter detailed other alleged instances of mismanagement, including:

• The seizure of land from the Malé Water and Sewerage Company (MWSC), where Fazul previously served as managing director, and its reassignment to a company associated with him.
• Awarding an $18 million contract to install lifts in the Hiyaa flats at rates reportedly higher than market value.
• Approving advance payments for projects, such as an auto centre and a commercial spine, before securing loans for the initiatives.

Zuhoor alleged that Fazul restructured HDC’s organisation and made unilateral hiring decisions without consulting the board. He claimed that board members were often pressured to approve items on the agenda without sufficient time for review and were sometimes misled into believing actions were ordered by the president.Zuhoor expressed regret that Muizzu had not attempted to clarify the truth when he was removed from his position. Zuhoor said that he had asked for an appointment with the president to explain the issues but he was denied the opportunity.