Business & Tourism
More than MVR100 million given illegally to MRDC
The money was not included in the state budget.
The Maldives Road Development Corporation was given more than MVR100 million (US$6.47 million) that was not included in the state budget, an audit report has found.
The audit report of state enterprises revealed that the MRDC was provided with MVR89.9 million as capital, despite the amount not being listed in the state budget.
It was handed out during a four-year period: MVR21.8 million in 2013, MVR19.1 million in 2014, MVR2.2 million in 2015 and MVR46.7 million in 2016.
The report, published last month, also found that an additional MVR11.4 million was issued illegally. The total amount given to the company – in violation of finance laws and rules – was MVR101.2 million.
“Providing funds to state companies illegally causes difficulties in managing the state budget and increases debt,” said the report, which was signed by Auditor General Hassan Ziyath.
An audit report from August 2016 found that the MRDC’s income declined by 34 percent in 2013 and 41 percent in 2014 because of carrying out projects that were not in its mandate.
The company reportedly built futsal stadiums, sold construction sand and managed waste in several islands. The audit also said the company needed to recover MVR17.8 million.
The Housing Ministry is now working to abolish the company and its work has been transferred to the the ministry amid allegations of corruption.
The company gave MVR10 million as advance payment to a private company to purchase cement but the shipment was not delivered.
There are also reports of corruption in a project worth MVR123 million to purchase vehicles from a foreign company.
The MDRC’s website says it is “on liquidation process.”
It has previously fallen foul of the auditor general. In 2014 a report uncovered an illegal advance payment of MVR120 million to the MRDC from the housing ministry.