Taxi drivers’ loans are scam, association says

The Drivers Association has stated that the taxi benefit loan scheme is a scam and has called for immediate intervention from relevant state bodies.

At a press conference held Wednesday, the association raised concern over recent deductions from the taxi benefit loans. Spokesman Ibrahim Niyaz said the previous government announced the scheme with an option for drivers to register a taxi by bringing in a vehicle. However, although the programme was announced earlier, the loans were arranged and disbursed only in March last year.

Niyaz said some taxi drivers received a loan of MVR 179,000 despite not being able to use their vehicles. He said this act by state ministries has placed drivers in a difficult position, and called it a scam. He said government agencies should be held accountable and a solution must be found.

Taxi driver Adam Saleem, who obtained a loan under the scheme, said he wrote to the President’s Office in July. He said 22 drivers and 44 guarantor families are now tied to loan repayments while no vehicle has been provided.

Saleem said loan agreements announced during the previous administration were signed under the current one. He noted that ahead of parliamentary elections, funds were deposited with a vendor named CarMV, with 60% of the money transferred to the company. The company claimed to have 14 cars, three of which were registered in B zone. Saleem said documentation for the remaining vehicles is incomplete and their status is unknown.

He said that for a year no ministry has resolved the matter. According to him, there is no government agency addressing the issue of drivers being required to repay loans without receiving the cars.

Saleem said he approached the police, who advised him to contact the Anti-Corruption Commission due to the involvement of a ministry. He said the police also indicated they could investigate the matter as a criminal case if required.

Saleem called on former leaders to speak on behalf of the drivers.

Another driver who received the loan said this is the first time a state has placed a loan burden on people through what he described as a scam. He has requested that the loan be deferred or made interest-free.

SDFC announced in 2023 that it would provide loans of up to MVR 300,000 under the taxi loan scheme. Eligible applicants included existing taxi drivers replacing old vehicles, current drivers purchasing new vehicles, and new taxi entrants. The loan carried an interest rate of 6%–8% over five years.