Addu Council bought faulty vehicles and violated finance rules, audit finds

The latest audit report of the Addu City Council has revealed serious irregularities in the procurement of two vehicles purchased for municipal work.

The audit report released by the Auditor General’s Office on Wednesday highlighted the purchase of a pickup truck and a snorkel lift for the Hithadhoo and Feydhoo island offices. The report noted that the council had neglected the required inspection and registration procedures in both transactions.

According to the report, the council did not conduct any inspection before handing over the pickup purchased for MVR 345,000. After the vehicle was brought under the agreement with the supplier, a subsequent inspection by the council office found multiple defects. The audit further stated that the pickup was not suitable for municipal work.

Auditors noted that the vehicle is not being used to its full capacity due to the handover without inspection.

The audit also uncovered major issues in the procurement of a snorkel lift awarded to a private contractor for MVR 549,720 for Feydhoo’s municipal work.

According to the report, the vehicle was manufactured in 2012, despite the announcement calling for a 2017 model. The vehicle was imported into the Maldives in 2019 and registered under a private individual in 2021.

The audit report stated that the council paid the supplier before the vehicle’s registration was transferred to the council, a clear violation of finance regulations.

In addition to the vehicle issues, the audit highlighted significant problems related to the Neighborhood Fish Plants in Addu. Two contracts awarded in 2020 for the construction of fish plants in Hithadhoo, Maradhoo and Hulhumeedhoo have been cancelled, and the advance payment of MVR 1,800,000 has not been recovered. The report also noted that the agreements signed for the construction of the Neighborhood Fish Plants in the same year remain incomplete for various reasons.

The audit report shows that these transactions have caused substantial losses to the state. The Auditor General’s Office has advised the council to rectify the issues and urged full compliance with procurement regulations, including the expedited recovery of funds owed to the state.