Gaafu Alif Council breached finance rules over overseas visit, audit finds

The Gaafu Alif Atoll Council spent more than MVR 300,000 on an experience visit to Thailand, according to an audit report released by the Audit Office.

The audit, which reviewed the council’s accounts for the previous financial year, identified multiple breaches of the Finance Act and instructed that corrective measures be taken.

According to the report, the council undertook an experience visit to Thailand from 20 May to 30 May last year, involving seven atoll council members and the secretary general. The audit found that the expenditure exceeded budgetary limits and was not in line with a Finance Ministry circular issued to improve efficiency in public spending.

The total cost of the trip amounted to MVR 338,006. Of this, MVR 266,457 was spent on accommodation and meals, while MVR 71,549 was spent on air tickets.

The audit noted that a finance circular issued to government institutions on 31 January 2023 set out requirements for managing expenditure, including a directive that overseas training programmes should not be conducted except for short-term courses and essential training.

The report further stated that the responsibility for identifying and arranging training to improve administrative and technical capacity of councils rests with the Local Government Authority. It added that coordination through the authority is required when observing the operations of foreign councils to gain experience.

However, the audit found that the Gaafu Alif Atoll Council did not consult the Local Government Authority prior to the visit to Thailand.

The Audit Office recommended that future expenditure be carried out in accordance with the finance circular and advised against funding such visits from council budgets. It said similar travel should only be undertaken if sponsorship or external assistance is secured.

The audit also highlighted other issues, including the failure to prepare and maintain accounts receivable by the end of the financial year, making it unclear how much revenue remained uncollected.

It further noted that land within licensed areas had been leased without proper documentation, with unpaid amounts remaining uncertain due to the absence of agreements.

Additional findings included the payment of overtime without clear regulations, amounting to MVR 783,792 paid to 20 council employees; procurement of goods and services in violation of financial rules, with MVR 251,880 spent on 10 transactions without proper process; and the purchase of goods and services from associates and businesses not typically engaged in such trade. Six transactions worth MVR 118,648 were recovered from parties not normally conducting such business in GA. Villingili.