Audit reveals financial irregularities by Ministry of Youth and Sports

Audit on Ministry of Youth and Sports has revealed violations of State finance regulation by the ministry in its projects run in 2015.

The finance audit on Ministry of Youth and Sports, released by Auditor General Hassan Ziyath during end of November, reveals that the ministry has violated the State finance regulation with makes it compulsory that projects valued at more than 25,000 needs to be awarded after an open bidding process and evaluation.

The audit reveals the MVR 223,747 project to repair the youth center “Muni Ufaa” was carried out without an open bidding process. It also reveals that Ministry of Youth and Sports sent the request to Ministry of Finance, claiming the repair work was urgent, more than a month after the project was awarded to a party.

Audit also reveals that Construction of a futsal turf in Baarah was assigned to Maldives National Defense Force without a written contract. Ministry had also awarded the MVR 250,000 project to house and feed 15 MNDF officers for 80 days in Baarah to a private party without an open bidding process and without an estimate of the cost.

It reveals that National Bureau of Classification’s work on the float for the 50’th Independence Day float parade was awarded NBC’s recreation club without an open bidding process. The club was given MVR 250,000 by Ministry of Home Affairs and MVR 45,500 from Ministry of Youth and Sports’ budget for the work.

Issues when awarding projects to State-owned companies!

Additional issues revealed in the audit report includes violations of State finance regulation when awarding projects to State-owned companies.

State finance regulation states that a service that needs to be rendered to the general population by the State can be awarded to a State-owned company or a company listed in

Maldives Stock Exchange that the State has a share in without a bidding process or submission to Tender Evaluation Board.

But it is required that the nature of the work, the estimate, and details of the party the work is awarded to be disclosed to Ministry of Finance.

Audit reveals Ministry of Youth and Sports awarded construction projects for futsal turfs in five islands to Maldives Road Development Corporation (MRDC) without disclosing details of each project, but by disclosing only the total estimate of all five projects.

It also reveals that Ministry of Finance provided the permission for the five projects without evaluating expenditure for each project, individually.

MVR 1,171,909 was spent to build futsal turfs in Hithadhoo, Maradhoo, Hulhudhoo, and Meedhoo in Addu City, and MVR 1,331,909 to build the futsal turf in G. A. Vilingili.

Audit reveals additional projects awarded to State-owned companies without a written contract or permission from Ministry of Finance. It includes the MVR 104,424 given to MRDC to water the jogging track in G. Dh. Thinadhoo stadium and repair and clean the grass on the stadium ground; and MVR 49,335 given to Fenaka Corporation to provide electricity to the stadium built in Hoadhandu district of Fuvahmulah City.

The top position in Ministry of Youth saw multiple changes during the past three years.

Mohamed Maleeh Jamal – a cousin of former Vice President Dr. Mohamed Jameel Ahmed – filled the position of Minister of Youth and Sports until May 20, 2015.

The position was then filled by Ahmed Zuhoor, who had been Minister of Health at the time.

Zuhoor was then transferred to the position of Minister of Home Affairs after Umar Naseer resigned from the post earlier this year.

The position was then filled by Iruthisham Adam, who had been Minister of Health at the time.