Audit: Services to 11 island before payment, documents mismanaged

It has come to light that Ministry of Tourism provided services to multiple islands leased for tourism prior to settlement of lease transfer and lease mortgage up until 2015.

The issues came to light after Auditor General’s Office released its financial audit of Ministry of Tourism for the year 2014 this week.

Former Vice President Ahmed Adeeb Abdul Gafoor has been Minister of Tourism during the period.

Adeeb is currently behind bars on corruption and terrorism convictions.

Multiple issues have been brought to light in the audit report.

It has come to light that Ministry of Tourism provided its services to 11 islands before settlement of lease transfer and lease mortgage payments.

State financial policy dictates that payment for work, services or sales by State agencies be settled within one-month after completion.

It was noted in the audit report that Ministry of Tourism reported to Auditor General’s Office that it only provided its services after full settlement of payment.

However, by end of 2014, Ministry of Tourism provided its services to seven islands prior to full settlement of lease transfer payment.

The islands and the lease transfer payments owing by end of 2014 were:

1. A. A. Mathiveri Finolhu (USD 5,000)

2. B. Hibalhidhoo (USD 5,000)

3. V. Fohtheyo Bodu Fushi – leased to Leisure Beach (USD 5,000)

4. Dh. Maagau – leased to Italian company Baglioni (USD 5,000)

5. B. Bodufaru Finolhu (USD 5,000)

6. N. Medhufaru – Soneva Jani (USD 5,000)

7. R. Faara Fushi (USD 5,000)

Ministry of Tourism also provided its services to four islands prior to full settlement of lease mortgage payment by end of 2014.

The islands and the lease mortgage payments owning by end of 2014 were:

1. A. Dh. Thundu Fushi (MVR 10,000)

2. K. Boli Fushi – Jumeirah Vittaveli (MVR 10,000)

3. R. Dhigali – leased to Universal Resorts (MVR 10,000)

4. K. Maadhoo – Ozen by Atmosphere at Maadhoo Island

Auditor General’s Office also noted in its audit report that Ministry of Tourism had not properly managed its financial documents with the relevant details; which renders it unable to verify the exact amount which the ministry should have received as income in 2014 and the amount owing.

Auditor General Hassan Ziyath noted in the report that mismanagement of financial documents could lead to hindrances in retrieving the money and possible damage to State finances.