Foakaidhoo Council bid exceeding MVR 1M won with false documents

The 2024 audit report concerning the Sh. Foakaidhoo Council has disclosed that a private company secured a government contract exceeding MVR 1 million through the submission of forged documentation.

According to the report, the Council failed to adequately verify the authenticity of the documents provided during the bidding process. As a result, the contract was awarded to a contractor on the basis of falsified information. The project, valued at over MVR 1.2 million, involved the procurement of an excavator and a dump truck for the Council.

The audit further noted that both procurement bids for the vehicles were awarded to the same contractor. It was determined that the contractor had submitted forged documents to satisfy eligibility requirements, specifically falsifying experience certificates and tax clearance documents issued by the Maldives Inland Revenue Authority (MIRA).

Although the contract was obtained through fraudulent means, the audit confirmed that the two vehicles had already been delivered to the Foakaidhoo Council.

However, the Auditor General's Office has recommended that the matter be referred to the Maldives Police Service for a criminal investigation, as the findings indicate clear elements of a criminal offense.

Submitting false or misleading documents to a state institution constitutes a serious offense under the Penal Code of the Maldives. Pursuant to Article  311 of the Penal Code, knowingly using a forged or invalid document as if it were authentic is a criminal act and carries penalties equivalent to those for forgery.

Furthermore, under Article 521 of the Penal Code, providing false information or submitting fraudulent documentation to a state authority or public official is also a punishable offense. Where such actions are intended to influence official decisions or deceive an institution, criminal charges may be brought under this provision.

These offenses are generally classified as Class 5 felonies or, in certain cases, Class 1 misdemeanors. The severity of sentencing depends on factors such as the nature of the document and the potential consequences of the fraudulent act; for example, the use of official government seals would result in more severe penalties. Typically, such offenses may carry a prison sentence of nine months and 18 days or longer.

If the fraudulent document relates to specific sectors—such as taxation, corporate, or elections—the offender may also be subject to additional charges under relevant specialized legislation, in addition to those prescribed under the Penal Code.