‘Taxi Nafaa’ loan scheme branded a scam as drivers told to begin repayments without receiving cars

It has come to light that the incumbent administration is instructing applicants of the ‘Taxi Nafaa’ loan scheme to begin repayment, contrary to the agreement, before they have even seen the cars they were promised.

The scheme was launched in 2023 by the previous government through SDFC to support individuals wishing to operate taxis in the Greater Malé Region (GMR). To facilitate the program, the then-government amended the regulations for registering land-based motorized vehicles, easing the process of registering cars imported under the scheme.

However, before loans were disbursed to selected applicants, the government changed. The new administration, aligned with the parliamentary elections, released funds to the vendor Car MV to purchase cars for some recipients. Under the agreement, the vendor was responsible for importing and registering the vehicles. In the first phase, cars for 12 individuals were imported and handed over. But while these vehicles were undergoing registration, the transport ministry abruptly annulled the amendment made by the previous government, blocking the path for registering cars purchased under the scheme in GMR. As a result, those 12 individuals continue to repay their loans without any ability to register their vehicles.

Amid this unresolved situation, the Bank of Maldives on Tuesday abruptly added a debt of MVR 179,400 to the loan accounts of all remaining applicants and instructed them to begin monthly repayments of MVR 6,840. They were informed that cars had been imported in their names, beyond the initial 12 recipients, and registered to the ‘B’ Zone. Yet it is understood that none of these applicants have even “seen” the cars. The development also contradicts the loan agreement, which specifies that vehicles can only be registered in the Malé Zone, designated as the ‘A’ Zone.

An applicant who spoke to this newspaper said the scheme has now become an outright case of fraud and deception. Participants are preparing to file a case with the Maldives Police Service (MPS), seeking an investigation into what they describe as a major act of deception and fraud by the government.

A loan recipient described waking up to instructions to repay a substantial loan without receiving a vehicle, noting that he already pays MVR 9,000 monthly for the car he currently drives, and is now being told to pay an additional MVR 7,000 to the government, calling the situation a large-scale scam.

Another taxi driver said the transport ministry continues to register cars for GMR in exchange for large sums of money. He stated that despite official claims that registrations are not happening, individuals inside the ministry are demanding MVR 190,000 to register vehicles to the Malé zone. He pointed to cars currently visible on the streets, without garages, with plates ending in “C,” and numbers starting from 2000 onwards, registered during Minister Ameen’s tenure, including luxury private vehicles parked on public streets. He argued that vulnerable drivers are being targeted because officials hold the power, adding that such oppressive practices will eventually come to an end.