Corruption Allegations, State Revenue Loss Over Major Township Project Sent to ACC

A private individual, Ahmed Saleem, has submitted a formal complaint to the President of the Anti-Corruption Commission (ACC), Adam Shamil, alleging corruption in a government-led township project.

The letter states that while land reclamation was already underway to develop N. Dhigufaru and Dhekunufaru as a 262-room ultra-luxury tourist resort under the name "Project Aila," President Dr. Mohamed Muizzu’s administration introduced sudden amendments to the Special Economic Zone (SEZ) Act. These changes established a new category titled "Sustainable Township," under which the resort project has now been granted SEZ status.

The letter highlights that granting Special Economic Zone (SEZ) status to the Aila project—an existing resort development—and transitioning it into a sustainable township less than a month after the legal amendments took effect raises numerous questions.

The letter states that if the property is developed as an ultra-luxury resort featuring 262 rooms, the government could potentially generate an annual direct revenue of MVR 70 million or more. This income would be derived from land rent, TGST, Green Tax, and income tax.

However, it was also noted that due to the substantial tax exemptions and customs duty concessions granted under the SEZ framework, the state would receive only a minimal fraction of the revenue typically generated by a resort.

The letter also noted that while Maldivians are currently required to pay an 8 percent GST to the government when purchasing property on the open market, there is a possibility that taxes on transactions within these townships could be reduced to approximately 1 percent.

The letter states that the sudden reclassification of this development as a Special Economic Zone (SEZ) project is suspected to be a calculated move to facilitate corruption. It further alleges that the decision prioritizes providing concessions to wealthy foreign investors purchasing luxury properties over the interests of Maldivian citizens seeking to buy homes in their own country.

The letter further stated that Henley & Partners, the firm awarded the contract for the Maldives' residency-by-investment visa program, is a company facing significant international scrutiny and serious allegations regarding such investment migration schemes. It emphasized the need for an investigation into the process by which the project was awarded to this particular firm.

The letter therefore requests an injunction to halt the project and calls for an expedited investigation into the matter.

What we are witnessing here is the sale of an area located within inhabited islands to foreign entities, granting them full ownership and the freedom to practice any religion of their choosing. This arrangement paves the way for gambling, the operation of casinos, and the recognition of same-sex marriage, all while stripping the government of any authority to intervene or exercise oversight, effectively granting these parties absolute control over the land. This is something the Maldivian people will neither accept nor condone. Even during the Faafu Atoll controversy, the public voiced their concerns, making it clear that leasing or selling vast territories to foreign parties in this manner is against the will of the people. Furthermore, the most sensitive issue at stake is the significant threat this poses to the sovereignty and national security of the Maldives.

Maaz Saleem's letter to the Anti-Corruption Commission (ACC)

The letter noted that during the Maldives-Singapore Business Forum held in Singapore last July, the government signed an agreement with Henley & Partners to introduce a 'Residence by Investment' program in the Maldives. However, the government did not disclose how the firm was selected for the project at the time, nor did it reveal any details regarding the commercial transactions involved in the deal.

The letter further expressed concerns that this project, which involves the use of power and influence to the detriment of the state despite its potential for significant public benefit, could lead to catastrophic consequences. It warned that unless the Anti-Corruption Commission (ACC) issues an injunction to halt the proceedings, the state treasury faces losses amounting to billions of dollars, posing a severe threat to the nation's sovereignty and national security.