Defence Ministry to file charges against those who failed to repay loans

Ministry of Defence has made the decision to file charges against employees who have failed to repay the loans granted between 1980 and 2005.

The issue was highlighted in the Audit Report for Ministry of Defence for 2010.

At today’s meeting of the Parliament’s Finance Committee, Chairperson and Dhiggaru MP Ahmed Nazim presented Defence Ministry’s response to the issues highlighted in the Audit Report.

Nazim referred to the letter sent to Finance Committee by Defence Ministry and said that Defence Ministry had notified the individuals to repay the loans, and is working on filing the cases to court.

“They have indicated that some individuals are making the repayments accordingly, and that they are preparing to take legal action against those who did not respond to their notification to repay the loans,” he said.

Defence Ministry’s Audit Report for 2010 revealed that loans were provided to 45 MNDF employees and four private individuals between 1980 and 2005. Out of this, 40 individuals have failed to repay the loans, resulting in Rf3.98 million being owed to the state. The loans were given at an interest rate of six percent.

“These loans were not granted justly or with equal opportunity,” reads the report.

The Auditor General had advised to send the cases of groups which had failed to repay the loans to the Attorney General’s Office.

Committee members noted that it is not part of the Ministries’ mandate to grant loans.

“Ministries should not grant loans to anyone; loans should be given by financial institutions,” Bilaydhoo MP Hamza said.

Discussions also took place on Audit Reports of Transport Ministry and Attorney General Office. No serious issues were noted in these reports by the Auditor General.