Auditor General orders Kulhudhuffushi Hospital to recover over MVR 3 million, including overpayments to political employee

The Auditor General’s Office has instructed Kulhudhuffushi Regional Hospital to recover more than MVR 3 million, including over MVR 100,000 paid to a political employee who worked at a health centre under the hospital for more than two and a half years.

According to the hospital’s 2021 and 2022 compliance audit reports released on Wednesday, the employee’s late attendance and days of absence were not deducted from his salary as required under the Political Employees Regulation.

The employee was appointed on March 4, 2021. The audit states that a total of MVR 136,773 should have been deducted from his salary up to November, but the amount was paid in full without any deductions.

Under the regulation, pay must be deducted for late attendance, and employees who fail to report to work without following leave procedures must have their salary reduced for the days of absence.

The audit also found that the hospital handed over the maintenance of its buildings and grounds to a private contractor and made payments without verifying whether the work had been completed. Under two separate agreements, the hospital paid MVR 1.84 million in 2021 and MVR 2.54 million in 2022 without written confirmation that the contractor had fulfilled the terms of the agreements.

In addition, three sampled procurement projects, the supply of surgical beds, drill systems, and arthroscopy systems, were not completed within the agreed timeframe. The audit noted an outstanding amount of MVR 429,479.

Another contract, signed on June 17, 2021 and later cancelled on April 28, 2022, left the hospital without MVR 42,245 owed to it.

The Auditor General’s Office recommended that the hospital recover all overpaid amounts from the political employee and ensure that salary deductions are made in accordance with regulations. It also advised the hospital to investigate why bills submitted to Allied Insurance were rejected, publicly announce contractors for works exceeding MVR 35,000, and maintain proper records of receivables.