News In Brief
20
WedMay 2026

Binveriya loss, recovery operation and tuna tariffs

News in brief from Wednesday, May 20.

Binveriya loss, recovery operation and tuna tariffs

The previous government's Binveriya land scheme cost Housing Development Corporation up to MVR 16 billion (US$ 1.1 billion) in potential lost revenue, a special audit by the Auditor General has found. Under the scheme, 4,120 Malé residents received 1,408 plots totalling 2.8 million square feet in Hulhumalé Phase 2 and Phase 3, free of charge. The audit estimates the foregone HDC revenue at between MVR 14.85 billion and MVR 15.93 billion, in addition to another 563,642 square feet of land HDC had reserved for essential services that had to be handed over to the government, complicating service delivery. "This financial loss creates a financial risk that the company's operating costs cannot be covered from its revenue, and that it will have to rely on the state budget to repay its loans," the report said. At an average 690 square feet per recipient, the per-person cost worked out at MVR 3.9 million, 70 percent more than the Hiya flat scheme and 63 percent more than the Gedhoruveriya scheme on a per-square-foot basis, the audit noted. Unlike recipients of the Hiya and Gedhoruveriya flats, who pay rent, Binveriya beneficiaries paid nothing. In January last year, HDC and the government signed a compensation agreement worth MVR 5.4 billion: Kaafu Fushidhiggaru Falhu (Rasmalé) valued at MVR 3.8 billion, MVR 734.7 million written off in tax owed to MIRA, MVR 792.2 million written off in finance ministry loans, and MVR 100.7 million in loan interest and penalties. The audit raised concerns that the compensation isn't direct revenue, that Rasmalé will take years to reclaim and monetise, and that the reclaimed land won't fetch Hulhumalé-equivalent prices. The audit also found no proper feasibility study or survey was conducted before launching the scheme. It recommended that the government revise the compensation paid to HDC, implement HDC's Hulhumalé development plan, and consider the financial and social impact on state-owned companies when shaping policy.

Recovery teams retrieved the final two bodies – Muriel Oddenino and Georgia Sommacal – from the underwater cave near Vaavu Alimatha, completing the search and recovery phase of the operation. The bodies will now undergo advanced forensic examination. The government thanked the Finnish expert team from DAN Europe, MNDF and police divers, and Maldivian volunteer organisations Water Solutions and Foresight for their contributions to the operation, which also cost the life of MNDF Staff Sergeant Mohamed Mahudhee.

Both Maldivian and Italian authorities launched investigations into the deaths of five Italian divers near Vaavu Alimatha last Thursday. Italian prosecutors opened a negligent homicide investigation with plans to conduct autopsies on the bodies after repatriation and question the crew of the safari vessel Duke of York. The Maldives government is investigating whether the dive organisers took required safety measures and adequate precautions for what officials described as an extremely dangerous dive, reaching about 60 metres into a cave with strong currents and near-zero visibility. Police launched an investigation into the death of MNDF Sergeant Mohamed Mahudhee, who died last Saturday after participating in the search operation for the missing divers.

The UK government scrapped import duties on tuna with immediate effect. President Muizzu welcomed the move as a historic decision that will boost fishermen's incomes and improve livelihoods in fishing communities. UK High Commissioner Nick Low said it would lower seafood prices in Britain and open better market access for Maldivian pole-and-line caught tuna.

STO dismissed an employee, Ali Shafeeu of Seenu Hithadhoo, for allegedly violating the Criminal Court's gag order related to the Adhadhu documentary about President Muizzu's alleged affair with a staffer. Shafeeu was sacked after an internal investigation found he had posted on social media stating he would not comply with the order. The company's letter to Shafeeu also cited language in the post deemed disrespectful toward President Muizzu and First Lady Sajidha Mohamed and concluded that his conduct violated both the court order and STO's employee code of conduct. The dismissal marks the first known case of a private sector employee losing their job over the controversial gag order.

The Health Protection Agency reported two new measles cases, bringing the total number of cases this year to seven, following two cases detected in the Malé area two weeks ago. More than 74 contacts have been identified and contact tracing is underway. HPA urged anyone experiencing fever accompanied by a rash to seek medical attention promptly, noting that measles – a highly contagious airborne disease – had previously been declared eliminated in the Maldives, though cases emerged again in 2023.

A Maldivian national was arrested in Sri Lanka as part of an operation by the Mount Lavinia Divisional Crime Investigation Bureau that uncovered an illegal TV and radio transmission centre operating under the guise of a travel company in Attidiya, near Ratmalana Airport. The centre was streaming pirated TV channels via satellite to viewers in Sri Lanka and abroad, with equipment valued at 50 million Sri Lankan rupees – including satellite receivers, dishes, computer systems, and a Starlink unit – seized by police. A second suspect was also arrested in the operation.

Parliament's general affairs committee allocated just 10 minutes for Deputy Speaker Ahmed Nazim to respond to the no-confidence motion filed against him by PNC, rejecting an MDP proposal for 20 minutes. The motion, signed by 73 PNC members, accuses Nazim of sowing discord, showing political bias, and failing to protect members' rights and privileges. The parliament session, originally scheduled to recess on May 15, has been extended to the end of the month to resolve the matter, with a vote expected next week. Nazim was also removed from the President's WhatsApp group for ruling party MPs on the same day PNC's parliamentary group decided to pursue the removal.

The Environmental Regulatory Authority fined MTCC MVR 550,000 (US$ 35,670) for illegally clearing trees from a protected wetland, mangrove, and marshland area in Haa Alif Baarah during road widening works carried out as a CSR project at the request of the island council in 2023. The fine comprises MVR 500,000 under the regulation on protected natural areas and MVR 50,000 under the regulation on preserving island vegetation, and must be paid within one month. ERA noted it had previously instructed the council not to clear any trees from protected areas and called the unreported violation "highly irresponsible."

The first pharmacy run by the new state pharmaceuticals company opened, the State Pharmaceutical and Medical Supply Company said. The 24-hour pharmacy, in the hospital's OPD area on the site of the former Life Support pharmacy, was opened by Malé City Group of Hospitals CEO Ibrahim Haleem and the company's Managing Director Dr Shah Mahir. The State Pharma outlet will sell over-the-counter medication, dispense prescriptions, and source medicines unavailable in the Maldives from overseas, with arrangements being made to supply medication and medical equipment to IGMH inpatients. The state pharmaceuticals company was established in September last year to address chronic medicine shortages. Medicines and medical consumables had previously been imported by STO. The handover from STO is to be completed by July, when all STO pharmacies will transfer to the new company.

Khadeeja Abdurrahman, 79, graduated with a degree in Arabic language from the Islamic University of Maldives after five years of uninterrupted study, becoming a mother of eight, grandmother of 19, and great-grandmother of seven who proved that age is no barrier to education.

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