Audit: MVR 191M in student loans unpaid by 2022, recovery stalled

The Auditor General’s Office has revealed that MVR 191 million in higher education loans remained unpaid by the end of 2022, with no documented efforts to recover the funds in accordance with state finance regulations.

The findings were published in the 2022 audit report of the Ministry of Higher Education, released on Sunday. According to the report, the ministry had disbursed MVR 3.1 billion in student loans by 2022. Of this, MVR 2.99 billion was managed by the Maldives Inland Revenue Authority (MIRA) and the Bank of Ceylon, under a memorandum of understanding with the Ministry of Finance. The remaining MVR 134 million was directly administered by the ministry.

The audit found that only MVR 651 million had been recovered by 2022, leaving MVR 190 million outstanding. Of this, MVR 81 million, representing 60 percent of the loans managed directly by the ministry, had not been recovered in line with the Public Finance Regulation.

The regulation requires state offices to:

• Send a written reminder within seven days of a missed payment deadline  

• Issue a second notice if payment is still not received  

• File a case in court if the payer fails to comply  

• Refer unresolved cases to the Ministry of Finance for further action

However, the audit found no evidence that these steps were taken for the MVR 81 million in overdue loans.

The Auditor General’s Office recommended:

• That ministries prepare annual financial statements in line with finance rules  

• That outstanding revenue and receivables be properly recorded  

• That a centralized database be maintained to track student loan repayments and defaulters

The report also included the ministry’s financial statement for 2022, showing a budget of MVR 661 million, of which MVR 660 million was spent.