Anti-Corruption Commission (ACC) has revealed
it is investigating the decision to contract the Hiyaa housing project to the contractor that proposed the highest expenses.
Five companies submitted proposals for the Hiyaa housing project launched by the administration of former President Abdulla Yameen.
The chosen company proposed to complete the project at a cost of USD 62,000 per housing unit.
The company with the second-highest proposed expenses had proposed USD 10,000 less per housing unit and the other companies proposed expenses in the range between USD 50,000 and USD 52,000. The proposed expenses result in USD 105 per square foot, which is more expensive than more costly housing projects which cost USD 77 per square foot.
ACC began its investigation in June and is currently obtaining the relevant documents.
China State Construction Engineering Corporation Limited was chosen to complete the development of 7,000 housing units as part of the Hiyaa housing project. The Hiyaa housing project was not completed to the standards and the loans taken to complete the project were beyond the commercial rate, government has stated.
Furthermore, Auditor General's Office (AGO) conducted an audit after the Housing Development Corporation (HDC) requested AGO to review the prices of the housing units set by Yameen's administration.
The audit has revealed the prices of the flats in the Hiyaa housing scheme set by the previous government were economically unfeasible. The report stated a debt of USD 583 million would be incurred in net cash flow in a 25-year period if the Hiya housing units were leased at the prices set by the previous government.