2018-2023 audit reveals irregularities in MVR 1B sports projects

An audit by the Auditor General’s Office has revealed that the Ministry of Sports, Fitness and Recreation failed to maintain proper records of sports projects worth MVR 1 billion carried out between 2018 and 2023.

The audit examined 576 projects implemented by the ministry over this period, including infrastructure development in various parts of the Maldives. According to the report, the ministry did not maintain a central database or complete documentation for these projects.

The report noted that the ministry’s records were incomplete, with missing details such as project start dates, costs, and implementation timelines. In a file shared with the Auditor General’s Office, several required data points were absent.

The audit revealed that annual expenditures increased steadily over the review period, with the largest spike in 2023—an election year. Spending in 2023 was 64% higher compared to 2022. However, despite this increase in funding, the report found no corresponding improvements in project management or oversight.

Of 129 projects reviewed in detail, 23 were implemented by splitting work between multiple contractors. These projects cost over MVR 154 million, with 18 of them individually exceeding MVR 5 million in value. The audit noted that dividing projects among different contractors resulted in delays and duplicated efforts, increasing costs to the state.

The report also highlighted widespread non-compliance with financial regulations. In 55% of audited projects, the ministry paid advance amounts exceeding the 15% limit set by state financial rules. In one case, the contractor received 55% of the project amount before turf-laying materials were delivered to the site.

Several expenditures were recorded under incorrect accounting codes, and some projects were incorrectly split into multiple entries in the government’s SAP system. These errors led to an increase in reported budget expenditures.

Further findings from the report include:

The audit also reported that many projects from 2019 and 2020 remain incomplete. Some sports fields deteriorated due to prolonged suspension, leading to higher future restoration costs.

In terms of asset management, the audit found discrepancies in inventory records. Assets valued at MVR 442,201, acquired in 2022, could not be located during the audit. The loss was not reported to either the police or the finance ministry. Additionally, there was no proper documentation for asset transfers to employees or youth centres.

During the transition of government in 2023, when the ministry was split into two separate entities, an IT staff member reported asset losses. The lack of formal asset handover protocols has made it difficult to determine accountability.

The audit also found that procurement of gym equipment for 61 islands was carried out in violation of financial procedures. The project was awarded to the Sports Corporation, resulting in an additional MVR 1 million in expenses from the state budget.

In another incident, a contract awarded in 2019 for the purchase of a new six-seat Nissan van ended with the ministry receiving an old van instead. Although nine parties submitted bids, the contract was awarded to the fourth bidder.

The report further stated that some youth centres constructed using public funds remained unused and had deteriorated. In several cases, the need for such facilities had not been assessed before construction.

Lastly, in 2018, MVR 36 million was allocated to various sports associations by the ministry. The audit found that there was no monitoring of how the funds were spent, and the recipient associations had not documented their expenditures in writing.