Audit report reveals gross misappropriation of funds to benefit Lintel Investments and Villa Shipping

Auditor General’s audit of the 2011 SAARC Summit has revealed gross misappropriation of government funds in favour of Lintel Investments and Villa Shipping.

The audit report shows that MVR 1.8 million was granted against the Public Finance Act, to leading local retail company Lintel Investments in which former government's Finance Minister Ali Hashim and Finance Secretary Ahmed Massood own shares.

The report also shows that a sum of MVR 2.4 was granted against the Public Finance Act to Villa Shipping, owned by tourism magnate Gasim Ibrahim.

The Auditor General's audit report for the 2011 November SAARC Summit states that the government had purchased two display units from Lintel Investments for the Equatorial Convection Centre in Addu City for a sum of MVR 1.8 million, without the proper request for the purchase to the Tender Board.

Signed by the Auditor General, the report advices that the issue be filed at the Anti-Corruption Commission (ACC) and properly investigated.

The report also notes that a MVR 2.4 million payment for a Tar Machine delivered to Southern Utilities Limited (SUL) for a road development project by was paid by the Finance Ministry’s contingency budget, although the payment should have been rendered by SUL.

The Auditor General has recommended that the people responsible for the matter be properly penalized.

Additional issued noted by the report include the payment of an excess of MVR 61 million to AMIN Construction for a project agreed for MVR 210 million. It also states that an advance payment was paid for the project, contrary to the Public Finance Act.

The report reveals that the government suffered a MVR 5.9 million loss for a project that was carried out by SUL and that the company had also claimed payment for work carried out by the military and the police.

The audit report shows that the government had spent an excess of MVR 436.6 million from the budget granted to them by the parliament to hold the 2011 SAARC Summit.

Other discrepancies noted by the report shows that the President’s Office had neglected to call for interested parties when they hired for certain projects and that they had also granted a total of MVR 95,000 for compensations without record of proper details.

It also shows that the Defence Ministry had tried to purchase 5000 proximity cards from a particular company. They had allowed MVR 350,000 in advance payments, which have not been sought back.

The report calls on the relevant authorities to take the appropriate steps against those responsible for the misappropriation of public funds.