During his recent visit to Nilandhoo island of Faafu atoll, President Dr. Mohamed Muizzu made false claims regarding the USD 150 million received from the Saudi Fund for Development, misleading residents about the true purpose of the financing.

Addressing the public on September 23 as part of his tour across the islands, President Muizzu asserted that the Saudi fund was allocated for the construction of a fully-fledged 50-bed hospital on the island. He attempted to justify the lack of visible progress by citing foreign funding protocols, procedural delays, and documentation requirements, claiming the project was still in its preliminary stages.

However, these statements are demonstrably false. The USD 150 million Saudi fund package was secured by the previous MDP-led administration, specifically for the development of Velana International Airport’s new terminal and select healthcare projects. The agreement, finalized in October 2023, earmarked USD 100 million for airport infrastructure and USD 50 million for healthcare sector development.

Contrary to President Muizzu’s assertion that only a month has passed since the financing arrangement, the loan agreement was signed by then-Finance Minister Dr. Shafeeq in May 2024, more than 16 months ago. His claim that such foreign-funded projects require eight to 10 months for preparatory work is also inconsistent with standard timelines for similar agreements.

The healthcare component of the Saudi funding was originally intended for hospitals in Rasdhoo island of Alif Alif atoll, Manadhoo island of Noonu atoll, and Fuvahmulah City, as planned by the MDP government. The current administration has altered this plan, redirecting the projects to Nilandhoo and Fonadhoo island of Laamu atoll, while retaining only Fuvahmulah from the original proposal. No clear justification has been provided for this shift.

President Muizzu’s misleading remarks appear to be part of a broader effort to claim credit for initiatives launched under the previous administration. Despite his assurances to Nilandhoo residents, no tangible progress has been observed on the proposed hospital project, raising further concerns over delays and transparency.