MREIC ordered to recover US$550 mln issued to Australian company

Maldives Real Estate Investment Corporation Pvt Ltd (MREIC) has been ordered to recover half a billion US dollars released by the corporation to an Australian company to raise funds for the construction of housing units in Hulhumale.'

In 2007, MREIC, of which Maldives Transport Contracting Company (MTCC) owns 99 percent share, released US$550 million (MVR 8.5 billion) to an Australian company, International Finance Corporation Australia (IFCA), to raise large amounts of funds for housing and real estate development. MREIC and IFCA had had discussions to raise funds for the construction of 690 housing units under the efforts.

The Anti-Corruption Commission (ACC) investigated the matter and said the US$550 million allocated to IFCA should have been returned to MREIC after the IFCA obtained the capital required for the work. It is known that the funds were released to MREIC from MTCC for the fundraising project, and the funds had not been returned by IFAC to MREIC to date, ACC noted.

"MTCC and MREIC have been ordered to recover the US$550,000 involved in the case as it is due to the state," the ACC said.