2020 audit finds Male' City Council obtained quotations from related businesses, raising risk of illegal benefit

The Male' City Council obtained quotations from related businesses in 2020 in a manner that benefited certain parties, according to an internal audit conducted this year by the newly elected council.

The audit examined the council’s financial and procurement practices in 2020 and found that 27 of the 46 sampled payment vouchers below MVR 35,000 had been quoted by “related businesses.” 

These were either two outlets belonging to the same company or separate businesses owned by the same shareholders, the audit said.

The audit further revealed that the total value of the services included in these 27 vouchers amounted to MVR 732,043.86.

According to the audit, obtaining quotations from related businesses undermines competitive procurement, does not ensure reasonable pricing, and is not economically viable. It also increases the likelihood of certain individuals receiving illegal benefits, the report stated.

The audit recommended that the procurement of goods and services be carried out in the best interest of the state, in a responsible and transparent manner, and in a competitive environment in accordance with state finance regulations.

The report also referenced a corruption case from 2020, when the Mayor of Male' was Shifa Mohamed. She had previously been accused of corruption. On 29 September 2020, the Anti-Corruption Commission (ACC) requested the Prosecutor General’s Office to prosecute Shifa over alleged corruption in the construction of a public park. A month later, the Prosecutor General’s Office returned the case to the ACC, stating that additional investigative details were required.