Parliament’s Public Accounts Committee refers Addu City Council audit discrepancies to police for investigation

Parliament’s Public Accounts Committee has decided to refer fiscal discrepancies flagged in the Addu City Council’s recent audit reports to the police for investigation.

The committee, which met on Monday, reviewed the compliance audits for 2022 and 2023 and the financial audit for 2024, and concluded that several findings amounted to potential violations of the State Financial Regulations. Members voted to submit the matter to police for a criminal inquiry.

According to the audit reports, the council spent MVR 1.2 million on overseas “experience trips” undertaken in 2023 and 2024, despite directives issued by the Ministry of Finance and the former Ministry of Local Government to reduce expenditure.  

The 2023 trip involved eight councilors and two council office staff, costing MVR 515,101. The 2024 trip involved nine members of the Women’s Development Committee, one councilor and the council’s secretary‑general, costing MVR 685,509.

Auditors also highlighted irregularities in land allocated for tourism development. A total of 166,340 square feet was added to 10 plots across Addu without public announcement, while lease amendments were made to eight plots in Meedhoo and Feydhoo. The report further noted that MVR 492,533 in government revenue, including MVR 274,200 collected as ID card renewal fees, had not been deposited into the public account at the Maldives Monetary Authority.

The audit additionally flagged procurement issues, including the purchase of a pickup truck for MVR 345,000 without conducting the required inspection. A subsequent assessment by the council found multiple defects and concluded that the vehicle was not suitable for municipal work.

Addu City Mayor Ali Nizar has previously dismissed several findings in the audit, stating that many of the issues highlighted were “illegal and unlawful”.