Parliament calls for swift action on MPL diesel procurement fraud
The audit recommended investigations by the Anti-Corruption Commission and the police, recovery of losses from those responsible, and procedural changes.
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The Parliament on Monday approved a request to the Prosecutor General and the courts to expedite efforts to identify those involved in the disappearance of oil purchased for operations at the Male Commercial Harbour.
The decision follows the Finance Committee’s approval of the Special Audit (2018–2020) on diesel procurement for Maldives Ports Limited (MPL), which was passed with 69 votes in favour.
The audit found that MVR 28 million worth of diesel supplied by Fuel Supply Maldives (FSM) to MPL was unaccounted for between 2018 and 2020. The breakdown includes MVR 9.6 million worth allocated to generators, MVR 18.5 million allocated for tugboats, and MVR 127,616 allocated for RGT cranes.
The report also stated that 799,900 litres of diesel, valued at MVR 7.2 million, sent to the Hulhumale jetty area was not supplied to MPL tugboats. Tug captains confirmed that the vessels were not refuelled from the Hulhumale location, despite FSM delivery notes indicating otherwise. MPL procurement staff and FSM drivers signed documents recording these deliveries.
The audit concluded that employees of both MPL and FSM were likely involved. It further revealed that forged request forms were used to procure 1.4 million litres of diesel, valued at MVR 13.2 million. These forms, containing falsified information, allowed repeated purchases beyond operational requirements and the diversion of fuel to unauthorised recipients.
Additional findings include:
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Changes to delivery quantities and locations under bulk purchase orders were made by telephone, not in writing.
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MPL’s diesel purchases in 2020 rose by 59% compared to 2019, despite reduced port operations due to COVID-19.
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A 2019 internal audit had already identified unexplained losses in generator fuel use, but procurement planning did not account for actual operational needs.
The audit recommended investigations by the Anti-Corruption Commission and the police, recovery of losses from those responsible, and procedural changes to prevent recurrence.
The Finance Committee directed:
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The Prosecutor General and the courts to prioritise recovery of compensation and report progress to Parliament.
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MPL to implement the Auditor General’s recommendations.
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FSM to modernise its monitoring systems, including cameras on tankers and upgraded fuel discharge meters.
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The Audit Office to conduct a special audit of FSM’s transactions, risk management, and internal controls.
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MPL to install automatic identification systems on its vessels to track fuel deliveries beyond city limits.
