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GA Dhaandhoo. Photo/Huvadhoo Atoll Facebook

MVR 1.2 million dues missing from Dhaandhoo council, audit says

With the audit reports of island councils being released now, it shows that many councils are experiencing similar financial problems.

29 August 2024

By Aishath Maha

An audit report has revealed that MVR 1.2 million due to Gaafu Alifu Dhaandhoo council has not been received in the form of land rent and penalty.

That was revealed in the council's 2022 financial audit report released on Wednesday.

The audit report shows that it is due land and penalties from 12 plots by 2022. The audit found that the council had not worked to recover the money as required by the rules.

According to the State Finance Rules:

  • They must be given seven days to recover the money if they have not paid within the stipulated time 

  • The deadline must be reminded in writing twice

  • If still unpaid then the council must appeal the case at court to recover the money owed 

The audit report also identified other issues besides that. They include:

  • The balance included in the bank reconciliation statement does not match the balance shown in the council's books; therefore, the MVR 2.3 million in the accounts of the council office is not valid

  • The money recognized as state revenue has not been deposited in the bank account; MVR 50,140 not deposited

  • The revenue money in the council’s safe was used to pay for some of the expenses of the council; of which MVR 1,84,378 was spent, of which MVR 139,057 was used without using cheques and without obtaining permission from the finance ministry

  • Some employees have not been deducted from their salaries for the STO credit scheme for a long time

  • There were also financial problems in the construction of the Dhaandhoo Indoor Badminton Complex

  • Bid performances not taken

With the audit reports of island councils being released now, it shows that many councils are experiencing similar financial problems. It has also come to light that MVR 600,000 is missing from the Thaa atoll Dhiyamigili council’s safe.

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