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An audit has found that the Haa Dhaalu Atoll Council failed to adequately monitor whether MVR 1.8 million in financial assistance provided to island councils was used in line with regulations.
The 2024 Compliance Audit Report, released by the Audit Office, states that a total of MVR 1,803,456 was disbursed in 2024 for solar panel installation and island development projects based on proposals submitted by island councils. However, the Atoll Council did not sufficiently oversee or verify how the funds were utilized.
Compliance with agreements not verifiable
The audit notes that existing regulations and agreements require the Atoll Council to ensure compliance with agreed terms. Despite this, there was no documentary evidence to confirm that monitoring had taken place, making it impossible to verify whether the funds were used for their intended purposes.
The report further highlights that some agreements had expired without being formally extended, and that the agreements did not clearly state how funds should be handled when projects were not completed within the stipulated timeframe. In addition, detailed project reports for several initiatives had not been submitted to the council.
Audit Office recommendations
In response, the Audit Office has instructed the Atoll Council to regularly monitor and oversee the use of aid funds provided to island councils and other parties. It also recommended that future agreements clearly outline corrective measures to be taken if projects are delayed or left incomplete.
Early payment made for State House renovation
The audit also raised concerns over payments made for the renovation of the Haa Dhaalu Atoll Council State House. According to the report, payments were released to a contractor before the work was fully completed, without preparing an official completion certificate or inspection report, in violation of Public Finance Regulations.
A total of MVR 580,803 was paid to the contractor after deducting MVR 102,495 as liquidated damages for delays. The audit further found that some work was carried out in deviation from the approved project information sheet, with no documentation to confirm council approval for the changes. Due to the absence of a detailed Bill of Quantities (BOQ), the exact cost of individual work items could not be determined.
To access the full Compliance Audit Report of the Haa Dhaalu Atoll Council for the Year 2024 for further details.
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