Audit: MVR 4.68M owed to Fuvahmulah Council in unpaid dues

An audit has uncovered that MVR 4.68 million is owed to Fuvahmulah City Council in unpaid dues.

According to the Fuvamulah City Council’s 2023 compliance audit and 2024 financial audit report, the Council is owed a total of MVR 4,684,351 in unpaid dues.

The audit report indicates that the Council failed to enforce the measures prescribed under public accounts regulations against parties who defaulted on their scheduled payments. Consequently, of the total amount of MVR 4,387,485 due as of December 31, 2024, only MVR 747,714 was recovered during the year, leaving an outstanding balance of MVR 3,639,771 as at December 25, 2024.

The audit further observed that lease agreements for land awarded for the provision of telecommunication services had not been renewed and that the associated rental payments remained unpaid. Two land plots had been in use for a period of four years without valid lease renewals, while rental fees for another plot allocated for the same purpose were also outstanding. As a result, the audit identified total receivables amounting to MVR 1,044,580 in respect of these three plots.

In addition, the audit revealed that MVR 1,040,405 collected by the Council as state revenue as of December 31, 2024, had not been deposited into a bank account as at the audit date of June 16, 2025. This amount comprises MVR 827,305 collected from ID card services and MVR 213,100 derived from security certificate fees.

The Auditor General’s Office recommended that these funds be deposited into the Public Bank Account without further delay.

The audit also reported that an agreement was executed on January 8, 2024, with a private company for the installation of new streetlights in designated areas of Fuvahmulah City, at a contract value of MVR 1,049,976 and with a stipulated completion period of 105 days. The project was not completed within the agreed timeframe, and notwithstanding a 30-day extension granted by the Council, no physical progress was undertaken.

It was further noted that the Council did not formally instruct the contractor to renew the performance guarantee for the duration of the extended period.

According to the audit, due to the contractor’s failure to progress in accordance with the contractual terms, the Council terminated the agreement on October 7, 2024. However, as a result of the failure to ensure renewal of the performance guarantee, the Council forfeited the opportunity to claim MVR 83,998 that should have been recoverable under the guarantee.

The audit recommended that a thorough investigation be conducted into the matter and that appropriate action be taken against any parties found to have acted negligently.

The audit also identified the unauthorized payment of attendance allowances to Council employees, in contravention of directives issued by the Civil Service Commission. The report states that, at meetings held on January 19 and March 13 of the preceding year, the Council approved the payment of an attendance allowance that was not included within the Civil Service Commission’s approved framework. Employees were paid MVR 50 for each full working day, with the payments disbursed from Council revenue funds.

The Audit Office further directed the Council to recover the excess allowances paid and recommended that action be taken against those implicated.