Maldives Parliament Committee to Probe in to Police Station Project

The Maldives' Public Accounts Committee has unanimously approved an investigation into an unfinished project awarded to Indian firm Indira Projects, which was tasked with constructing 60 police stations in rural areas. The project, initiated during the administration of former President Ibrahim Mohamed Solih, involved financing from the Exim Bank of India for 85% of the project’s cost, with the remaining 15% funded by the company. However, concerns have emerged over the management and transparency of the funds, specifically in light of allegations that public money may have been misappropriated for private interests.

In 2019, Indira Projects secured the contract, valued at $3.6 million, with funds provided by the Maldivian government. During a committee meeting, Hithadhoo Central MP Ahmed Azaan noted that Indira Projects had acquired a stake in Big Company, owned by former Economy Minister Fayyaz Ismail's family. Azaan cited concerns that government funds intended for the police station project might have been diverted for personal purposes, referencing a property known as “Moonima” under construction in Malé’s Galolhu area, reportedly linked to Fayyaz’s family.

In an earlier session, Homeland Minister Ali Ihsan informed the committee that $3.2 million had already been transferred to the project company, yet no visible progress on the construction had been made. Ihsan confirmed that the funds remained with the company, though the government had received no accountability or financial details regarding the expenditure.

The investigation is expected to review how the funds were allocated, potential mismanagement or conflicts of interest, and adherence to contractual terms with Indira Projects. The committee’s decision comes amidst increased scrutiny over foreign-funded infrastructure projects, with Maldivian lawmakers seeking to ensure transparency and safeguard public resources.