HDC is over a billion dollars in debt: Economic Minister

The Housing Development Corporation (HDC) is over a billion dollars in debt, Economic Minister Fayyaz Ismail has said.

Minister Fayyaz said on Thursday that this was the extent of the company’s financial situation when the new government took over after September’s presidential elections.

Fayyaz said that much of the debt was accumulated through expenses on former president Abdulla Yameen’s bid for re-election, including purchasing and setting up billboards.

In October of 2018, the Anti-Corruption Commission (ACC) began allegations that the corporation had purchased metal poles for use in the campaign, at its own expense.

A high-ranking employee at HDC had said that large sums were spent on President Yameen’s campaign, an assertion supported by the fact that the government is currently working to supplement HDC’s ‘cashflow’, which recently took an abrupt down turn. Critics say that HDC may have spent an upwards of MVR 30 million on the campaign.

The employee further said that 150 new staff were hired ahead of the campaign, with each of them being given over MVR 8,000 as monthly compensation.

Ali Nashid, the senior finance officer at HDC, even confessed to their employees threatening supporters of president-elect Ibrahim Mohamed Solih, Yameen’s electoral rival.

HDC, and multiple other state enterprises, have been accused of being involved in the ruling party’s activities. HDC’s vehicles have even been used to carry equipment and utilities used at rallies.

President Abdulla Yameen’s administration has also denied allegations that they coerce, intimidate, and bribe employees of state enterprises and the civil service to support them.