Ungoofaaru Council revealed to have spent MVR 11 million unlawfully in 2020

The 2020 audit report of R. Ungoofaaru Council released by the Auditor General’s Office shows that the council spend over MVR 11 million unlawfully during that year.

One of the biggest issues highlighted in the 2020 audit report of Ungoofaru Council, signed by Auditor General Hussain NIyazy, is expenditure by the council without the required approval from a superior.

As per the audit report – the council acquired services and goods worth MVR 4.5 million without completing the approval form which the Auditor General reports could be viewed as abuse of government funds and transactions carried out for the benefit of a specific party.

Another issue highlighted in the audit report was the expenditure of over MVR 3 million without announcing bids. The audit report states that Ungoofaaru Council spent MVR 3.1 million through 14 payment vouchers in 2020.

The Public Finance Act states that expenditure that exceeds MVR 35,000, whether for a good or service, must be opened for public bidding.

According to the audit report – Ungoofaaru Council acquired goods worth MVR 3.5 million in 2020 without signing for its purchase and receipt. It was emphasized in the report that the lack of signature in the order forms for goods rendered them unable to identify whether the ordered goods were received and were in good condition from documents.

Additional matters highlighted in the audit report include non-receipt of documentation with respect to the lease of land plots under the jurisdiction of the council, non-fulfillment of the register of revenue and failure to document the money stored at the council. It was also noted that Ungoofaaru Council’s bid committee had failed to register with Finance Ministry.