Audit reveals irregularities in Hulhumalé sports school project
The Audit Office has recommended that the case be submitted to the Anti-Corruption Commission (ACC) for further investigation.
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An audit report has uncovered several procedural and financial irregularities in the implementation of the Hulhumalé football school project, managed by the Ministry of Sports between 2018 and 2023.
According to the report published by the Audit Office, MVR 38.5 million was allocated in 2018 for the construction of the football training school in Hulhumalé. The Ministry of Sports awarded the project to the Football Association of Maldives (FAM), despite the project not being included in that year’s budget.
The report highlights several issues:
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No budget allocation was made for the football school within the approved budget framework.
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The decision by FAM to bypass the National Tender Board was not explained.
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The project was executed on the advice of the President’s Office.
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MVR 38.5 million was spent, exceeding the allocated amount by five percent.
Under public finance regulations, projects exceeding MVR 2.5 million must be approved by the National Tender Board. However, in this case, approval procedures were not followed, and the ministry did not provide a rationale for assigning the project to FAM.
Although eight companies submitted bids, only five were evaluated. The remaining two, which reportedly offered lower prices and shorter project durations, were not considered. Further, discrepancies were found between the bid prices and timelines recorded in FAM’s evaluation report and those in the original bids.
Additional concerns identified by the Audit Office include:
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Work unrelated to the project scope was later added.
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FAM was awarded an additional MVR 9.9 million for unrelated items such as furniture and turf construction on FAM property.
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Payment vouchers worth MVR 10 million were authorised without clear documentation.
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It remains unclear whether MVR 20 million paid to the contractor was sanctioned by the appropriate authorities.
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Completion documents were not prepared before payments were made.
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As of October 2020, MVR 17 million had been disbursed in six instalments without the project being completed.
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The contract did not include any provision for compensation due to project delays.
Although the agreement specified a 90-day completion period from 4 July 2018, the work remained incomplete as of 26 September 2022. By that date, MVR 32 million — equivalent to 84% of the total project value — had already been spent.
The Audit Office has recommended that the case be submitted to the Anti-Corruption Commission (ACC) for further investigation.
