Fayyaz faces corruption claims: Company contracted to build police stations building Male’ home instead

The project contracted to India’s Indira Projects during the previous administration to build dozens of police stations across the Maldives remained stalled, says Homeland Security Minister Ali Ihusan, adding that the only project the company is currently undertaking in Male’ is a project to build Moonimaage, a home in Galolhu district of the Maldivian capital.

The project to build 61 police stations across the Maldives was announced by the Maldivian Democratic Party (MDP) administration in 2019. Ashoka Buildcon and Indira Projects and Development entered into a joint venture to form ABL Indira Projects JV LLP to execute the project. In 2021, Maldives Police Service and Indira Projects signed a contract for the project. According to the terms of the agreement, 85 percent of the project funding would come from the Exim Bank of India, and the remaining 15 percent would be sourced from the Maldivian government.

But Ihusan told the Parliament on Monday morning that Indira Projects has not done any work on the project despite taking money from the state.

He said that the only work that Indira Projects is doing in the Maldives is to build Moonimaage after buying shares from the Business Image Group (BIG) – a company run by the family of Fayyaz, the chairperson of the main opposition MDP and the country’s former economic minister.

BIG had previously taken a loan from the Bank of Maldives (BML) to construct part of Moonimaage. The Civil Court had issued a judgement against BIG at the time, permitting the bank to sell Moonimaage after it defaulted on a MVR 30 million loan it took from the bank to build the house.

Responding to a question by Ibrahim Falah, the parliamentary group leader of the main ruling People’s National Congress (PNC), Ihusan told the Parliament on Monday that the project to build the police stations is valued at around USD 60 million.

He said that the project was kept on hold by the Economic Ministry for two years before the contract was finally signed in 2021.

“But no practical works on the project have been initiated to date,” said Ihusan.

He also noted that Indira Projects was paid 15 percent of the contract value in advance.

“The very first thing that Indira Projects did was to ask the government to advance them 15 percent of the loan. Paperwork from back then show the government gave them USD 3.6 million,” he said.

Ihusan had previously also expressed concern over the advance payment.

He said that Indira Projects previously confirmed it received the USD 3.6 million, it has not been able to explain what it did with the funds.

Ihusan said that “the only thing” Indira Projects has done is to buy shares from BIG and work on constructing Moonimaage.

“We have been informed that it bought shares from some company called BIG and is carrying out speedy work and is near to completing the construction of some house called Moonimaage,” he said.

But despite the serious accusations, Ihusan did not directly name Fayyaz.

BIG is co-owned by Fayyaz’s older brother Hassan Ismail and Mohamed Munshid – a former photographer at the President’s Office.

Hassan Ismail denied the allegations made by Ihusan.

Fayyaz had also previously denied the allegations when questioned by a reporter during a MDP press briefing.