Ex-minister caught fibbing reg. "Hiyaa" flats, at committee

The People’s Majlis Committee on National Development and Heritage has caught former Minister of Housing and Infrastructure, Dr. Mohamed Muizzu fibbing regarding the price tags of the 7,000 housing units built under the former administration’s “Hiyaa” housing scheme.

The committee summoned Dr. Muizzu alongside the current Minister of National Planning, Housing and Infrastructure, Mohamed Aslam to it’s meeting on Thursday.

Responding to inquiries by the committee members, Dr. Muizzu asserted that the project where 16, 25-story towers were construction in Phase Two of Hulhumalé, "was not carried out under his supervision".

However, he stated MVR 5,600 as the monthly rent for the units based upon the information provided by the Housing Development Corporation (HDC) as well as the President’s Office, back then.

When committee members questioned regarding the price tag, Muizzu stated that the flats can be issued under the price and that the former administration of now incarcerated former president Abdulla Yameen had planned to hand the flats over to the recipients, upon completion.

While Muizzu made this statement, the current Minister Aslam stated that the monthly rent for the units is estimated to be at MVR 6,849 without the risk value, based on the construction expenses as well as a six percent interest rate.

The minister’s statement was backed by the senior HDC officials present at the meeting.

Earlier, the minister assured that the monthly rent for the flats under the “Hiyaa” housing project will not exceed MVR 7,000.

According to Aslam the agreement did not include finishing touches such as installing fans, doors, tiles and lighting and the government had initially planned to obtain a loan of USD 42 million to complete the work.

However, the government had later decided against it and is now working to finish the work allocated under the scope of the agreement, instead of taking an additional loan for the project.

China State Construction Engineering Corporation Limited was contracted with the project to build the 16 25-story towers on 20 July, 2016. The government acquired a USD 434 million approximately MVR 6,692 billion in loans to conduct the project. This is a rate of USD 62,000 or MVR 956,040 per flat.

The incumbent administration has decided to issue 6,720 out of the 7,000 flats so that the ground floors of the towers can be used to run shops, for security purposes as well as waste maintenance and administrative work.