Defence Ministry

Auditor General's report of the Ministry of Defence and National Security for 2011 has revealed major inconsistencies and suspected attempts at fraud, including misrepresentation of recurrent and capital expenses in the ministry’s financial statement for the year 2011.

The Auditor General’s report stated that in an attempt to deceive, the ministry had included some MVR 122 million in capital expenses allocated for SAARC Summit, as recurrent expenses. The ministry’s assets were also understated in its financial statement, the report said.

The report revealed that the ministry had neglected for valuate and include the different gifts received by the Maldives military during the SAARC Summit. Records of these gifts were not received by the Ministry, and thus, not included in their annual financial statement, the Auditor General's report said.

It also noted 75 percent of a payment owed to a Sri Lankan company, Development Interplan Ceylon Limited was paid against the Public Finance Act. Although the company had failed to compete the intended SAARC Summit project in time, the government was also forced to make a full payment to the company because it the Ministry had failed to include a clause to protect the government's interests, the audit report said.

The Auditor General's report stated the value MVR 37.8 million, declared by the 2011 Maldivian Democratic Party (MDP) administration as a valuation of the capital assets, was a false declaration.

The report recommended authorities to investigate and prosecute the guilty parties.