CSC says Kaafu Atoll Council issued MVR 23,000 in uniform allowances without approval

The Civil Service Commission (CSC) has revealed that MVR 23,000 was paid to employees and councilors of the Kaafu Atoll Council as uniform allowances without the commission’s approval.

The finding is included in the 2023 Compliance Audit Report of the Kaafu Atoll Council, released by the Auditor General’s Office on the 20th of this month. The report also highlights multiple violations of the Public Finance Act and related regulations.

At the time, the President of the Kaafu Atoll Council was Mohamed Nimal, who now serves as the CEO of the Local Government Authority (LGA), the parent body overseeing councils.

According to the audit, the council had not recovered loans for several years due to the absence of a proper system to manage tsunami loans, benefit loans and employee scheme loans. Cases involving loan defaulters had not been filed in court, and MVR 635,036 received from other island councils had not been returned to the Atoll Council.

The report further noted that MVR 221,060 in lease payments for council land had remained outstanding for more than four years.

In addition, MVR 49,800 collected as driving test fees and telecom licence fees up to 2023 had not been deposited into the public bank account at the Maldives Monetary Authority (MMA). Receipts for more than MVR 1.9 million were not issued, while receipts for MVR 7.6 million were prepared after the date of deposit. The audit also found that MVR 94,943 in revenue had been recorded under incorrect budget codes.

Employee-related issues included the payment of MVR 23,000 as uniform allowance to staff and councilors without CSC permission. The audit also stated that the council’s property registry lacked valuations and item details, and that annual physical verification of assets was not conducted. The financial statements were excluded from the report due to significant discrepancies between the figures in the statements and those recorded in the council’s business module.

The Auditor General has instructed the council to rectify the issues and ensure full compliance with the Public Finance Act and its regulations.