Monday, May 23, 2022
DhiDaily - English Edition
  • Home
  • Local
  • Reports
  • World
  • Business
  • Sports
  • Entertainment
  • Tech
  • ދިވެހި
No Result
View All Result
  • Home
  • Local
  • Reports
  • World
  • Business
  • Sports
  • Entertainment
  • Tech
  • ދިވެހި
No Result
View All Result
DhiDaily - English Edition
No Result
View All Result

Reducing Hiya Flat Rent Would Result in a Significant Loss – Audit

Adam Ahid by Adam Ahid
October 23, 2021
0
Reducing Hiya Flat Rent Would Result in a Significant Loss – Audit
0
SHARES
13
VIEWS

Housing Development Corporation (HDC) estimated the rent for the flats developed under the Hiya housing project after considering the loan and other factors, and lowering it will result in a considerable loss, the Auditor General’s Office said.

According to an audit report on Hiya flats provided in response to HDC’s request, imposing the MVR 6,600 rent determined in 2018 would result in a loss of MVR 1.2 million on each unit. In addition, the report said if the 2018 rent was maintained for the next 25 years, HDC’s net cash flow would result in an MVR 9.2 billion loss.

The audit also noted that even with the existing rent, HDC would have a net cash flow shortfall of MVR 138.6 million.

According to the audit report, Male City Council estimated a rent of MVR 5,548 for Hiya units while Libor, an international standard for calculating the benchmark of a loan’s interest rate, was low.

It further said Male City Council estimated rent while Libor was at 0.6 percent owing to the COVID-19 outbreak, even though Libor is generally more than 3.3 percent and that loan repayments were made this year when Libor was at 1.74 percent.

The monthly rent of MVR 6,600 set for Hiya units in 2018 did not consider the interest rate on loans obtained for the project and refinancing, nor did it take into consideration the cash flow impact on HDC, the report said.

The audit report, which was delivered to the President’s Office and the People’s Majlis, suggested that the rent be calculated by considering the cost of capital to cover the loan’s financing cost. It also recommended that HDC be assisted by subsidised additional expenditures not included in the project’s cost. Land charges, building management fees, and supplemental development expenditures are not included in the project cost.

Tags: Auditor General's OfficeHDCHiya Housing Project

Related Posts

BML Introduces Digital Wallet in Mobile App
Business

BML Introduces Digital Wallet in Mobile App

May 23, 2022
MFDA Warns of Rotten Eggs Being Sold at Stores
Local

MFDA Warns of Rotten Eggs Being Sold at Stores

May 23, 2022
Newly Registered Party Members to Receive Text Notification 
Local

EC Publishes List of Individuals Registering in Political Parties

May 23, 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Trending
  • Comments
  • Latest
The Power of Women’s Leadership, A Powerful Economy

The Power of Women’s Leadership, A Powerful Economy

March 14, 2021
Fire Breaks Out in Vakkaru Resort

Fire Breaks Out in Vakkaru Resort

December 14, 2021
The Defining Challenge & Scandal of Solih's Gov't

COVID-19 & Ventilators: The Defining Challenge & Scandal of Solih’s Gov’t

March 28, 2021
Investigative Journalism is Dead Upon Arrival

Investigative Journalism is Dead Upon Arrival

April 7, 2021
Speaker Nasheed Undergoes Multiple Successful Surgeries

“I Will Not Compete Against President Solih” – Nasheed

1
Cat Strangling Video Receives Backlash

Cat Strangling Video Receives Backlash

1
UK Prime Minister Boris Johnson Reveals His Cautious Lockdown Easing Plan

UK Prime Minister Boris Johnson Reveals His Cautious Lockdown Easing Plan

0
Nasheed Expresses His Concerns and Seeks To Find Answers Regarding The One Room Apartment Project

Nasheed Expresses His Concerns and Seeks To Find Answers Regarding The One Room Apartment Project

0
BML Introduces Digital Wallet in Mobile App

BML Introduces Digital Wallet in Mobile App

May 23, 2022
MFDA Warns of Rotten Eggs Being Sold at Stores

MFDA Warns of Rotten Eggs Being Sold at Stores

May 23, 2022
Newly Registered Party Members to Receive Text Notification 

EC Publishes List of Individuals Registering in Political Parties

May 23, 2022
Two Dead in Speedboat Accident at GA. Villingili

Two Dead in Speedboat Accident at GA. Villingili

May 22, 2022

Recent News

BML Introduces Digital Wallet in Mobile App

BML Introduces Digital Wallet in Mobile App

May 23, 2022
MFDA Warns of Rotten Eggs Being Sold at Stores

MFDA Warns of Rotten Eggs Being Sold at Stores

May 23, 2022
Newly Registered Party Members to Receive Text Notification 

EC Publishes List of Individuals Registering in Political Parties

May 23, 2022
Two Dead in Speedboat Accident at GA. Villingili

Two Dead in Speedboat Accident at GA. Villingili

May 22, 2022
DhiDaily - English Edition

© 2021 Dhidaily

Navigate Site

  • About
  • Advertise
  • Privacy & Policy
  • Contact

Follow Us

No Result
View All Result
  • Home
  • Local
  • Reports
  • World
  • Business
  • Sports
  • Entertainment
  • Tech
  • ދިވެހި

© 2021 Dhidaily