Committee approves changes to fund allocations from Exim Bank loan

Public Accounts Committee of the Parliament has approved and fowarded to the parliament floor a committee report granting changes sought by the government to allocation of funds from a loan from China’s Exim Bank. The changes seek relocate some of the funds, designated to construct 1,500 housing units in four southern atolls, to construct 704 housing units in Hulhumale'.

At the third meeting of the Public Accounts Committee meeting held today, the committee decided to send the committee report compiled on 17 December 2012 by the former Public Accounts Committee, which consents to changes requested by the President to reallocate the funds from the Exim Bank loan, to the parliament floor without any changes.

The proposal was passed with 5 votes from Progressive Party of Maldives (PPM) and 1 vote from Maldives Development Alliance (MDA) in favour, of the eleven MPs present. Maldivian Democratic Party (MDP) and Jumhoory Party (JP) MPs voted against the proposal.

MDP MPs at the committee also requested to summon Minister of Housing and Infrastructure Dr Mohamed Muizzu, along with Minister of Finance and Treasury Abdulla Jihad to the committee. However, MDP’s proposal to further review the issue was ignored, and the committee passed previous committee's report without going for a vote on MDP’s request.

In a letter to the parliament on Wednesday, President Abdulla Yameen Abdul Gayoom asked to review and amend the allocation of funds from a MVR 2.5 billion (982,500,000 Yuan) Exim Bank loan, which was taken by former president Mohamed Nasheed in 2011 for the construction of 1,500 housing units in four southern atolls, to construct 704 housing units in Hulhumale’.

President stressed in his letter to parliament on Wednesday that the government should be free to re-allocate funds as required and said that the current restrictions hinder the development process. He further noted that the government, through a needs assessment, has determined the adequate housing needs in the southern most atolls for the time being, justifying its re-allocation of funds for the 704 units in Hulhumale'.