Audit reveals cancellation of 60% of disaster management funding
The audit report states that USD 9.85 million of the total fund has been cancelled, leaving a balance of USD 6.65 million.
An audit report released on Saturday has revealed that 60 percent of the funding allocated for the Maldives Urban Development and Resilience Project has been cancelled due to changes in government policies and planning issues.
The project, signed on 28 April 2020 during the previous administration, was financed through the World Bank’s International Development Association (IDA), with a total allocation of USD 16.5 million—comprising USD 8.25 million in grants and USD 8.25 million in loans.
The audit report states that USD 9.85 million of the total fund has been cancelled, leaving a balance of USD 6.65 million. The cancellation affected several components of the project, including:
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A rainwater drainage system
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A stormwater drainage master plan
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A treatment plant for safe water disposal
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A firefighting system strengthening project
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Construction of a new building for the National Disaster Management Authority (NDMA)
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Procurement of hazardous materials protection equipment such as hazmat suits
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Implementation of an Electronic Construction Permit Management System
The report noted that the cancellation of significant portions of the project—designed to address flooding, climate change impacts, and disaster management—stemmed from a lack of consistent planning standards between successive governments and insufficient coordination between implementing agencies.
One reason cited for the withdrawal of funds was the failure to transfer ownership of the new NDMA building from the Housing Development Corporation (HDC) to the NDMA, a step that had not been completed since the tenure of the previous government.
This is the second audit report on the project, following an earlier one released last year. The report underscores the need for improved inter-agency coordination and policy continuity in order to safeguard development funding and ensure the implementation of projects with direct impact on public welfare.
