Maldives Police Project Under Scrutiny as Indian Firm Linked to Ex-Minister
Home Minister Ihusaan Ali has alleged that an Indian joint venture, originally contracted to build police stations across the Maldives, is instead constructing a building linked to a company associated with former Economic Minister Fayyaz Ismail.
Minister Ihusaan made these statements during a question-and-answer session in parliament today.
The USD 48 million contract was awarded in July 2021 to ABL Indira Projects and Development, a partnership between the Indian firms Indira Projects and Ashoka BuildCon, a Fortune 500 infrastructure company. The project was to be financed through a loan from India’s EXIM Bank, covering 85 percent of the costs, with the remaining 15 percent funded from the Maldivian state budget.
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The initial scope of the project included the design, development, and construction of 61 facilities: eight atoll stations, 23 island police stations, 21 police posts, one detention centre, two expansions of existing facilities, and police stations in Malé and Hulhumalé, along with four accommodation buildings.
However, Ihusaan stated in March that despite an advance payment of USD 3.6 million (15 percent of the project’s value), the joint venture had not commenced any tangible work on the planned sites. This led the Maldives Police Service to investigate both the joint venture and the contract.
In his statement to parliament today, Ihusaan claimed that a review of ABL Indira’s activities in the Maldives revealed that the company had acquired shares in Business Image Group (BIG), a Maldivian company linked to former Economic Minister Fayyaz Ismail. He further asserted that the joint venture is currently constructing a building for BIG at G. Moonimaage instead of the contracted police stations.
During the Q&A session, Ihusaan suggested that the former Economic Minister’s influence played a role in the project’s direction, noting that the original proposal was brought to the Economic Ministry before it was handed over to the Maldives Police Service.
“After two years in the Economic Ministry, it was sent to the Maldives Police Service, and the project was planned and agreements were signed to build 60 police stations in a project worth almost USD 60 million, financed by EXIM Bank.”
The Minister reiterated concerns that no work has been carried out on the police stations despite the joint venture having collected the advance payment.
“The first thing they did was request a 15 percent advance for the project,” Ihusaan stated. “To this day, they haven’t provided any details on how the advance payment has been utilised. In one meeting, they told us they still have the funds, but they have not conducted any physical work.”
Ihusaans comments raise questions about the project and the involvement of Fayyaz who is currently the chairperson of the opposition Maldivian Democratic Party.
Business Image Group currently owned by Fayyaz’s brother Hassan Ismail has previously faced scrutiny over contracts awarded from the Maldives National Broadcasting Corporation (MNBC).
