MVR 19 billion spent on land reclamation over 30 years, much of it unused: Auditor General

The Maldives has spent approximately MVR 19 billion on more than 70 land reclamation projects over the past three decades, but much of the reclaimed land remains unused, Auditor General Hussain Niyazy has said.

Speaking at a parliamentary committee meeting on Tuesday to examine the proposed 2027 state budget, Niyazy said approximately 2,500 hectares of land had been reclaimed through around 70 projects over the past 30 years, excluding the Ras Malé development.

He said the government had spent approximately MVR 19 billion on these projects, but much of the reclaimed land had not been developed for housing, industrial or other purposes.

"Although land has been reclaimed under many projects, electricity, water and other infrastructure have not been established. As a result, much of the land has not been put to substantial use for industrial activities or housing," Niyazy said.

The Auditor General raised concerns about the economic returns from reclamation projects, stressing the need to ensure that public spending on land development generates benefits for the state.

Niyazy also highlighted the financial implications of allocating land in Hulhumalé free of charge under the Gedhoruveriya housing scheme introduced by the previous Maldivian Democratic Party (MDP) administration.

He said approximately 2.8 million square feet of land had been allocated free of charge under the scheme, with an estimated market value of MVR 15 billion.

According to the Auditor General, using the land for commercial purposes could have enabled the government to recover approximately 80% of the MVR 19 billion spent on land reclamation projects over the past three decades.

He said the value of land should be recognised when determining how state-owned property is allocated and developed.

"We must recognise that land is a valuable asset in the Maldives. It is important to utilise state-owned land in a manner that generates revenue and benefits for the government," Niyazy said.

The Auditor General said land reclamation projects, including Ras Malé, should incorporate commercial components capable of generating financial returns.

He warned that without such provisions, reclaimed land could remain unused, as had occurred with several previous projects.

"Otherwise, these reclaimed lands will be no different from piles of stones and rocks. It is therefore important to include a commercial component in these projects," he said.

Niyazy stressed that reclamation projects should be planned with consideration for their long-term economic use, rather than focusing solely on the creation of additional land.

He said the government should identify ways to generate revenue from reclaimed land while ensuring that the necessary infrastructure is developed to support its intended use.

Niyazy also confirmed that the Auditor General's Office would audit expenditure on the Ras Malé project and other major government development projects, with the findings to be published.

He said the audits would examine public spending on land reclamation and other major infrastructure investments.

The Auditor General noted that reports recently published on Maldives Airports Company Limited (MACL) and a subsidiary established to undertake land reclamation did not contain detailed information on reclamation expenditure.

He said further audits would be undertaken to examine the costs associated with these projects and provide greater transparency over government spending.