A recent special audit report on the Police Housing Project, also known as the Blues Housing Project, has revealed significant financial irregularities. According to the report, POLCO paid MVR 96 million to Noomadi Private Limited for the construction of housing units, whereas the actual value of work completed was assessed at MVR 38 million.

The project began on 19 June 2013, with an agreement between POLCO and Noomadi to construct 300 housing units at a cost of MVR 580 million. The project was initially slated for completion within 24 months but faced delays and amendments, including an increase in the scope to 341 housing units. Despite these changes, the agreement was eventually terminated.

The audit report stated that POLCO hired a quantity surveyor to assess the value of work completed by Noomadi as part of the termination process. The valuation confirmed delays that extended the project well beyond the original timeline. Following the termination agreement, POLCO paid MVR 96.32 million to Noomadi, far exceeding the MVR 38.2 million valuation of the work completed.

The report also noted that MVR 37.8 million of the amount paid was claimed by Noomadi as compensation and other expenses, including payments to HDC for 80 per cent of the value of the land and equipment procured for the project.