Press Statement: Call for Fair and Independent Investigation into Allegations of Corruption in the ‘Binveriya’ Housing Scheme

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20th December 2024

Transparency Maldives expresses deep concerns over allegations of corruption related to the government’s ‘Binveriya’ housing scheme involving political appointees of public institutions, and members of the board and senior executives of State-owned enterprises (SOEs). The suspension of key officials in leadership positions of the state, amid a police investigation highlights the severity of the issue and raises serious questions about the governance of SOEs, public institutions and the highlights the critical role of oversight bodies.

The specific allegations, including claims that the HDC Managing Director’s brother was awarded land despite not meeting eligibility criteria for land under the scheme, point to potential misuse of authority. Reports that as many as 50 land plots may have been allocated outside the regulatory framework further compound concerns about systemic governance risks. Such allegations erode public confidence in the fairness and transparency of public housing schemes and the broader integrity of public institutions.

The ‘Binveriya’ and ‘Gedhoruveriya’ Scheme has faced persistent allegations of corruption and irregularities since its inception in 2023. Media reports have highlighted public concerns, many of which were formally submitted to the Anti-Corruption Commission (ACC). These concerns include the timing of the scheme’s launch, coinciding with the presidential election, and repeated changes to the eligibility criteria, which have raised serious questions about the true intent and fairness of the scheme.

Conflicts of interest among high-ranking government officials is a recurring concern in the Maldives, with many such allegations surfacing in past corruption cases. In the absence of any transparency around politically exposed persons or a full registry of people who are appointed to political positions, these conflicts pose a serious risk of regulatory or state capture, where the system is exploited to enable abuse of power. They can also hinder political will to address systemic failures, particularly when such failures benefit those who are already benefiting from the status quo. To ensure transparency and integrity in governance it is imperative that effective mechanisms are put in place to address cases of conflicts of interest, when they arise. This will ensure transparency and integrity in governance.

To restore public confidence and address systemic corruption, we urge the government to take the following actions:

  1. Thorough and Timely Independent Investigation and Prosecution of corruption cases: Ensure independent and comprehensive investigations are conducted in a timely and transparent manner, with regular public updates to maintain public trust and decisive action must be taken against those responsible, including criminal proceedings and restitution of any misappropriated resources.
  2. Strengthened Oversight Mechanisms: Implement stronger measures to prevent corruption and abuse of power within publics institutions and SOEs, including enhanced whistleblower protections and independent audits.
  3. Clear Conflict of Interest Policies: Introduce and implement comprehensive conflict of interest policies across all public institutions and SOEs to ensure transparency and prevent misuse of authority.
  4. Transparent Appointment Processes: Ensure a merit-based, transparent appointment process with proper due diligence and vetting process for political appointees and board members of SOEs and disclose a comprehensive list of politically appointed persons.
  5.  Asset Declaration Legislation: Introduce and enforce robust asset declaration legislation with comprehensive verification mechanisms to curb illicit enrichment.
  6. Transparent Mechanisms for Addressing Corruption and Strengthening Accountability Frameworks: Develop and enforce a clear, accessible system to investigate and act upon allegations of corruption against public officials.
  7. Strengthen Anti-Corruption Measures: Bolster anti-corruption efforts through an independent judiciary, independent oversight bodies, and law enforcement agencies empowered to hold perpetrators accountable.

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