Anti-Corruption Commission (ACC) has launched an investigation into alleged corruption in the Police Housing Project (Blues Housing Project), targeting the POLCO.

Following a court order, ACC officials entered POLCO’s office at Iskandar Koshi around 4:30 PM to examine financial irregularities in the construction of police flats.

A special audit report released on January 24 highlighted multiple instances of corruption in the project, which involved building 300 housing units. The report revealed that MVR 1.06 billion was spent on the project, at a rate of MVR 1,851 per square foot. However, the Tender Evaluation Board and private sector construction costs suggest an average cost of MVR 1,000 per square foot. Based on these estimates, the audit report states that the project was overpriced by MVR 354.7 million.

Originally, the project was contracted for MVR 580 million, but costs have since increased by MVR 481 million, nearly doubling the total expenditure. The audit report accuses POLCO of lacking technical expertise, modifying contracts to benefit contractors, and engaging in fraudulent activities.

Further, the report found that the bidding process violated State Finance Rules. In 2013, the contract was awarded to Noomadi Pvt Ltd for MVR 500 million without a public tender announcement in the Government Gazette or proper evaluation by the tender board. Additionally, after terminating the agreement with Noomadi, POLCO paid MVR 96.3 million to the company.

The ACC’s investigation aims to uncover the full extent of financial mismanagement and hold those responsible accountable.