An audit report on the Police Housing Project, known as the Blues Housing Project, has uncovered significant overpayment issues. The report revealed that POLCO paid an additional MVR 20 million to Noomadi Private Limited beyond the amount owed for the construction of housing units.

The audit, released yesterday, highlighted discrepancies in the payment schedule outlined in Schedule 4 of the cancelled development agreement. According to the agreement, payments excluding the initial down payment were to be made in 240 monthly instalments, with the payment period starting on 8 December 2015. However, the audit found that POLCO had agreed to pay Noomadi in instalments for the remaining contract amount, rather than aligning payments with the actual progress of work.

By 26 January 2016, the amount owed to Noomadi, excluding the down payment, was MVR 64.3 million. However, the audit revealed that POLCO had already paid a total of MVR 96.3 million by the time the agreement was terminated. This resulted in an overpayment of MVR 20.2 million, which the audit attributed to POLCO failing to assess work completion using project completion certificates.

The initial agreement, signed on 19 June 2013, involved the construction of 300 housing units at a cost of MVR 580 million, with a 24-month completion deadline. The agreement was later amended to include 341 housing units, but the project faced delays and was ultimately terminated.