Audit says Nilandhoo council’s failure to issue registry caused investor millions in losses and deprived atoll council of revenue

The Auditor General has reported that the Nilandhoo Council’s failure to issue a registry for a guesthouse project on the island has caused the investor losses amounting to millions of rufiyaa, while also depriving the Faafu Atoll Council of significant revenue.

According to the 2024 compliance audit of the Faafu Atoll Council, released on March 3, the council should have received MVR 381,677 in rent for the land allocated for the guesthouse. The property was leased in 2016, with approval from the Home Ministry, for a 30‑year period to generate income for development projects in Faafu Atoll.

However, the audit states that the Nilandhoo Council did not issue the registry for the guesthouse building and land, preventing the investor from obtaining the necessary permissions to begin operations. As a result, the facility has remained unused for years, and the island has not received the economic benefits it was expected to generate.

The Auditor General noted that the delay has caused the investor losses estimated in the millions, while the atoll council has also missed out on MVR 400,000 in potential revenue.

The report recommends that the relevant authorities engage in discussions to resolve the issue and ensure the guesthouse can be brought into operation. It further highlights that the people of Nilandhoo have been denied the benefits they should have received from the project.