Audit reveals MVR 261 million on idle Fenaka project staff

The Auditor General’s Office on Wednesday released a special audit report revealing that Fenaka Corporation spent MVR 261 million on salaries and allowances for employees hired under in-house projects, including during periods when these projects were inactive.

The audit, focused on the recruitment, promotion, salaries and allowances of employees working under in-house projects, showed that Fenaka implemented 80 such projects between 2021 and 2024. A total of MVR 437 million had been paid in salaries and allowances to employees hired for these projects as of last year.

The report highlighted that several projects had only reached the stages of land clearance and foundation laying, after which no further work had been carried out for extended periods. Despite the inactivity, employees hired for the projects continued to receive regular payments. The audit noted that temporary staff were not dismissed even when no construction activity took place.

According to the audit, MVR 13.5 million was spent on staff assigned to three specific projects where no physical construction had begun by 2024. These projects include:

The report also indicated that seven employees initially hired for these idle projects were later transferred to other assignments.

In addition, projects that did begin but experienced significant delays incurred further personnel-related expenditure. MVR 247 million was spent on salaries and allowances for employees assigned to such delayed projects.

The audit further revealed that 646 employees received extra compensation for their work on in-house projects, beyond their official salaries and allowances. These additional payments totalled MVR 19.5 million from 2021 to 2024.

Moreover, a discrepancy was identified where certain employees received excess payments. A total of MVR 229 million was paid to employees beyond their entitled remuneration for in-house project work. The audit cited instances where 37 employees were paid for two separate projects within the same monthly salary cycle, effectively resulting in duplicate payments.

The Auditor General’s Office has not disclosed individual names or accountability measures but recommended enhanced oversight mechanisms and improved project management procedures to ensure the efficient use of public funds.