Tag: tsunami reconstruction

Government announces completion of all tsunami housing units

The government has announced the completion of all housing units constructed by the state for people made homeless in the 2004 tsunami disaster.

In a joint press conference held today by the housing and finance ministries, Minister for Housing and Infrastructure Dr Mohamed Muizzu declared that 298 housing units in four islands in Gaafu Dhaalu Atoll, and 41 housing units in Thaa Madifushi have now been completed.

Muizzu stated that the government had taken direct control of the project last November on the decision of President Abdulla Yameen following numerous attempts to negotiate with the contractors regarding the delays in work.

On the ninth anniversary of the disaster in December 2013, Yameen had pledged to complete permanent housing for all the 427 families who remained homeless.

Muizzu did not reveal whether new private contractors had been brought in to complete the unfinished work, saying only that there would be no “legal problems in any of the work the government has directly been involved in”.

He also stated that the government took over the project after seeking legal advice from the attorney general and noted that the Anti Corruption Commission and the auditor general were invited to review the proceedings.

Finance minister Abdulla Jihad stated that Vimla Construction Pvt Ltd was awarded a US$20 million contract in October 2008 to build the housing units in Gaafu Dhaalu Atoll for completion within 14 months. Jihad said that approximately US$16.6 million had been spent up to now.

He also noted that the delays and the need for the government to become directly involved in the completion of the housing units meant the projects were likely to cost more than expected, although the full amount has not yet been determined.

“STO has supplied substantial amounts, we estimate that the value (of supplies by STO) will be a significant sum,” Jihad said.

The finance ministry’s audit report of 2011 revealed that it had spent MVR17.5 million to transport materials for the construction of the tsunami housing units in Gaafu Dhaalu. The audit report noted that the expenses, which were not included in the finance ministry’s budget, should not have been paid.

Further, the audit report also recommended a specific audit be done and a report published on the tsunami housing units contracted to Vimla Construction.

The 2004 tsunami resulted in 82 deaths and 26 missing persons in the Maldives. Figures from the UN show that the disaster displaced nearly 10 percent of the Maldives’ population, severely damaging a quarter of inhabited islands with 14 completely evacuated.


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Government transferred tsunami money to Denmark, alleges budget committee

Money intended to rebuild houses in Meemu atoll Kolhufushi after tsunami damage was instead sent to another country via telex transfer, chairman of budget review committee Ahmed Nazim alleged last night.

Nazim claimed that Rf 256 million (US$20 million) allocated to the reconstruction project in the supplementary budget on 20 April 2009 had been sent overseas 18 days earlier.

“This was done in violation of the budget passed by the People’s Majlis,” reads the budget committee report.

The Rf256 million was originally earmarked for purchasing shares of the Maldives Water and Sewerage Company (MWSC), but was reallocated to construct houses in Meemu Kolhufushi and Thaa Madifushi, two islands devastated by the tsunami.

“The amount was still included in the budget proposed 18 days later and even when the item was changed, we note that the government did not provide this information to the Majlis,” Nazim said. “This has to be looked into further. We will investigate and find out how this happened.”

During last night’s debate, Maafanu West MP Abdullah Abdul Raheem said the Rf 256 million was telexed abroad on two separate occasions on 2 April.

“I don’t know where it was sent yet, but I believe it was sent to Denmark,” Raheem said.

The transfer was not so much suspicious as “a matter of misleading the parliament,” Nazim claimed.

“The government submitted the budget requesting Rf256 million to purchase MWSC shares from two companies. Now we know that money was transferred before the budget was tabled in the Majlis,” he said.

During his presentation of the budget report, Nazim was interrupted by a point of order from MDP MP Ahmed Hamza who accused him of misusing the time to present the budget report on unrelated matters.

“These things have been written in the report and can be seen by the members,” Nazim responded. “This is not something I am saying on my own. This is the truth. No matter how much you try to hide the truth, it can’t be done.”

The budget review committee had also found that the government failed to conduct a research study into universal health care in the first six months of 2009, and had sold its shares in telecoms provider Dhiraagu without seeking parliament’s approval.

Responding to the accusations in parliament today, Finance Minister Ali Hashim said MPs had been “repeatedly informed” of how the funds were used.

“The transaction occurred before the revised budget was passed under an agreement signed by the government,” he said. “I have informed Majlis about this before as it was stated in the agreement.”

The agreement was made with a foreign company to purchase shares of MWSC, he said, adding the government has secured funds to rebuild houses for displaced victims of the tsunami.

Moreover, said Hashim, the majority stake of Dhiraagu was sold in accordance with the constitution and the financial regulations.

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