Audit flags WAMCO for millions in alleged graft
The audit office has asked WAMCO to file the matters noted in their report with the ACC for investigation.
By
Aishath Fareeha Abdulla
The Waste Management Corporation (WAMCO) purchased vehicles and vessels to its waste management fleet in 2016 and 2017 illegally, according to its 2016-2017 audit report.
The Office of the Auditor General on Monday released the 2016-2017 special audit of WAMCO. The report found that the company had committed a lot of violations in the purchase of dump trucks.
The report notes that the company purchased vehicles worth MVR 43.9 million outside the public tender process during 2016 and 2017. Thus:
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WAMCO had said that they had to do it thus since some of the vehicles they required were available from one source only
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Vehicles should be purchased based on the specification of the vehicle rather than a brand, and the best bidder should be awarded the bid, the report said
The audit office has directed to file a complaint with the Anti-Corruption Commission (ACC) to investigate the matter to take action against those responsible for the purchase of these goods and services outside competitive tender issuances.
The report then notes:
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On November 16, 2016, WAMCO purchased 10 dump trucks via a private business
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The company was awarded the contract for MVR 6.8 million
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15% was paid in advance
The vehicles supplied are not of the specification and brand requested by WAMCO's Operation and Collection Service Department. Thus:
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WAMCO has been supplied with modified vehicles
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The country and brand of the vehicle has been fiddled with
The agreed price for the supply of the dump truck was MVR 6.8 million, but the contractor was paid an additional MVR 407,642 as GST, the report noted. Thus:
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The work agreement and the supplier's proposal gave a total cost of MVR 6.8 million; the reason for the additional GST payment is not documented
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The Audit Office has ordered the recovery of the additional money spent on the purchase of the vehicles
The audit office has asked WAMCO to file a complaint against those responsible for procuring the dump trucks as it was found that it was purchased outside competitive bidding in a corrupt manner.
Corruption in supplying landing crafts
In October 2016, the company, which was awarded the contract to supply three landing crafts to WAMCO, signed an agreement to equip the landing crafts with Yanmar brand engines. Without changing the price of the contract, the report pointed out that Cummins brand engines were installed instead in the vessels. Thus:
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The USD 10,000 discount offered by the supplier to change the brand of the engine was not included in the amendment to the agreement
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The landing crafts were paid for without deducting the discount
Though the Cummins brand engine is cheaper than the Yanmar engine, and a discount was included, the audit office has asked the ACC to investigate the alleged agreement to install Cummins brand engines on the landing crafts without changing the contract price, as it might have been done to benefit the company entrusted with the work.
In addition, the report then noted a case in which two of the three landing crafts leased for WAMCO for one month were extended month by month and the vessels were used for a total of 20 months.
According to the report:
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During that period, the vessels were rented at the initial rate without reviewing the lease
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This cost more than it should have
Sponsorship given outside policy
The WAMCO audit report also pointed out that funds were disbursed to various individuals on several occasions when the board decided not to release funds as sponsorship without a proper policy. Thus:
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MVR 850,000 to three organizations on four occasions, as sponsor
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This includes MVR 250,000 to run a pre-school and MVR 600,000 to sponsor a futsal tournament
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The funds were released without any guidelines and after the company's board had decided not to give sponsorship to anyone
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The funds were released after the Managing Director of the company signed and a memo was sent to the Finance Section
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The ACC has been directed to investigate the alleged payment of money to benefit a particular party.
