HDC incurs USD713mln loss due to Binveriya Scheme: AGO

The Auditor General's Office (AGO) has stated that the Housing Development Corporation (HDC) incurred a loss of USD713 million due to the Binveriya Housing Scheme.

The audit report released by the AGO shows that several state-owned enterprises (SOEs) experienced significant losses last year. Specifically, HDC faced severe financial losses attributed to the Binveriya Scheme. The report also shows that the state should compensate for these damages.

The Binveriya Scheme involves the allocation of land in Hulhumale', Gulhifalhu, and Giraavarufalhu. It was planned to distribute 1,351 plots in Hulhumale', 2,218 plots in Gulhifalhu, and 5,432 plots in Giraavarufalhu. The audit report reveals that HDC suffered a loss ranging from USD467 million to USD681 million due to the free allocation of these plots, based on HDC documents.

The report also detailed that HDC lost USD500 million in land value alone, along with an additional USD214 million in potential revenue from the commercial allocation of the land. In response, the government has decided to compensate HDC with land to offset the loss of revenue. The AGO noted that an agreement with the Ministry of Finance has been reached to determine the USD500 million in land value compensation.

The AGO concludes the distribution of free land under the Binveriya Scheme will result in substantial losses for the country in the future.