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February 14, 2025

The Public Accounts Committee of Parliament has asked the Auditor General to carry out a special audit of the 300-flat project undertaken by Sifainge Cooperative (SIFCO).

In a letter addressed to Auditor General Hussain Niyazy, the committee requested an examination of the SIFCO flat project, focusing on its expenditures, outstanding bills, and payments made to contractors and subcontractors.

The Auditor General’s Office has been instructed to update Parliament by noon on Sunday regarding the timeline for delivering the audit reports.

This request comes after a recent report from the Attorney General’s Office concerning “Blue Housing,” a project run by the police welfare company POLCO, which uncovered serious issues.

The Public Accounts Committee is currently assessing the findings. Senior officials from the Auditor General’s Office have been called to meet with the committee this week to discuss the POLCO report. During this meeting, members noted that the POLCO and SIFCO housing projects began around the same period, yet the SIFCO flats experienced delays, justifying the need for a similar audit.

The foundation stone for the “SIFCO Hiyaa” flats was laid on November 26, 2014, with an initial completion timeline of 18 months. However, construction faced delays due to complications with the original contractor, resulting in the project being transferred to China’s The 23rd Metallurgical Construction Group. After over nine years, the project was finally completed, and MNDF officers moved in last year.

The audit report on the POLCO flats indicated that the project’s cost surpassed MVR 1 billion, which is double the original estimate.

The report claimed that various agreements were designed to benefit specific individuals, prompting an order for an investigation to identify those accountable and take necessary action.

The Anti-Corruption Commission is also prioritizing this case.