Special audit to be conducted to determine state expenditure

Auditor General Niyaz Ibrahim has said that efforts are under way to conduct a ‘public debt audit’, to determine government expenditure over the past five years.

Niyaz said this in response to a question raised at the Parliament’s Public Accounts Committee meeting today, in relation to the $300 million loan obtained from Bank of Maldives Limited (BML) by the government.

He said that he can only comment on that issue after conducting the public debt audit, which is currently in progress.

“The audit will look into whether loans were obtained by the government in line with the Public Finance Act. It is our commitment, to announce the audit results before the end of the year,” he said.

Niyaz informed that the audit was commenced last September, and until the end of yesterday, the focus was on obtaining details of loans and debts of the government over the past five years; and that work is now in progress to study these details.

“This audit is of utmost importance, as it is connected to the state’s sustainability as well. It will reveal the state’s approach to obtaining loans. It is part of our mandate to exercise caution in relation to loans obtained by the government,” he said.

This is the first ever public debt audit to be conducted in the Maldives.

“This requires technical expertise. I am ashamed to inform that we do not have the necessary resources for this. Nonetheless, our plan is to commence similar audits shortly as well,” he said.

The Audit Office is also auditing the public-private partnership projects carried out by the government.

Concluding today’s meeting, Chair of Public Accounts Committee and Dhiggaru MP Ahmed Nazim said that the Committee’s discussion on the issue of the $300 million loan obtained by the government will be halted, as it is currently ongoing at the parliament floor.