The state has yet to recover MVR 136 million in advance payments made to contractors for 25 projects that were started under the previous Maldivian Democratic Party (MDP) government and later cancelled, the Auditor General’s Office has revealed.
The findings are part of a compliance audit of the Ministry of Housing, Land and Urban Development covering 2018 to 2023.
According to the report, the 25 projects were launched between 2019 and 2023. Their contracts were terminated after changes in state policy and because the contractors failed to carry out the work adequately.
Contractors were paid a total of MVR 180,291,915 in advances for the projects. Of this, only MVR 43,758,957 has been returned to the state, leaving MVR 136,533,958 unrecovered.
The audit found that although the ministry sent letters asking the contractors to repay the money, it did not follow the procedure set out in the Public Finance Regulation. Under the regulation, if payment is not received by the deadline, a seven-day grace period must be given, and the matter must be taken to court if the money is still not paid.
The Auditor General’s Office urged the authorities to make sure contractors are capable of delivering projects before contracts are awarded. It also recommended action against those responsible for failing to recover the money as required by the regulation.
