Audit office concerned over sovereign fund discrepancy

The audit report of the entire government expenditure done by the Audit Office has revealed that the figures given by the former government on investment by the Sovereign Development Fund (SDF) to pay off foreign debt do not match.

The Audit Office recently released its audit report on government expenditure for 2022. The sovereign fund had invested MVR 2.7 billion at the end of the year.

However, the statement of the sovereign fund provided by the Ministry of Finance at the request of the auditors shows that MVR 3.2 billion has been invested, the report said. This is a difference of MVR 550.3 million.

The audit report noted that the audit office had not provided the Ministry of Finance with adequate details of the difference.

“Due to this discrepancy, the quantum of sovereign fund figures and the authenticity of the amount invested cannot be ascertained,” the audit report said.

The audit report recommended that the sovereign fund's accounts be validated.

President Abdullah Yameen's government deposited more than USD 50 million into the Sovereign Fund he established in 2017. The Ministry of Finance said:

The government aims to raise the fund to USD 100 million by the end of this year. The government says the fund will spend USD 250 million (MVR 3.8 billion) annually next year and in 2026.