Asset distribution documents were not properly handled during Mifco, Kooddoo split: Audit Report

Audit of Kooddoo Fisheries Maldives has revealed that the asset distribution papers were poorly handled during the break away of Kooddoo Fisheries Maldives Ltd from Maldives Industrial Fisheries Corporation Ltd (Mifco).

The 2011 Audit Report of Kooddoo Fisheries Maldives released by the Auditor General’s Office yesterday states the company had neglected in maintaining the documents detailing the distribution of assets during spinoff. The report noted that the authenticity of the documents are questionable and that this, in turn, produces questions regarding the actual value of revenue generated by the Kooddoo Fisheries Maldives. The company announced a revenue of MVR 17.8 in 2011.

The report states that Kooddoo was awarded MVR 207 million during the split and that in 2011, the company spent MVR 1 million from the amount awarded, although none was used on share capital.

The report also notes that due to the unavailability of proper documentation, the Auditor General’s Office was unable to gather the required information to produce a conclusive statement regarding the financial statement of Kooddoo Fisheries Maldives.