Fisheries Audit Report 2010:
More than Rf 200,000 given as fuel subsidies to vessels not active

The Audit Report of Ministry of Fisheries 2010 has revealed that more than Rf 100,000 was released as fuel subsidies, due to the negligence of the Ministry, to vessels currently not used for fishing.

The Report signed by Auditor General Niyaz Ibrahim and published on the Audit Office website today, says that failure to ascertain if a vessel is involved in fishing before offering subsidies has resulted in the release of subsidies to one vessel used for picnics and another used for removing sand from the sea. Subsidies had also been given to a vessel which had not been out for fishing for about a year. A total of Rf 243, 302 was provided as subsidies to these three vessels.

It was also noted that The Ministry continued to give subsidies to two vessels even after complaints were received that this money was being used for the operation of a private power station.

It was recommended that The Ministry of Fisheries file cases against Valiya Oil Supply and Izza Investment Private Limited, as it is believed that the release of money to these groups involved dishonesty.

The report also highlights that out of the budget for fuel subsidies approved by the Parliament, Rf 549,764 was used for the Ministry’s expenses. This money was used for the payment of overtime salaries of employees involved in the provision of subsidies, administrative expenses, expenses in relation to Fisherman’s Day celebrations, and expenses involved in the shift of the office to Velanage Building.

The Report which highlights several problems, says that two individuals were unofficially employed by the Ministry on part-time basis. No contract was drawn up following their employment and Rf 625, 816 was spent as salaries and privileges for them. The report also noted the lack of a proper reporting procedure for employees. No proper records were kept of employee attendance or allowances.

The report also highlights the case of Rf 54.1 million owed to the government by operators of islands leased for agricultural purposes.

Discrepancies were observed even in the Financial Statement of the Ministry. Auditor General said that it is not possible to “rely” on the Ministry’s Financial Statement, as there are large discrepancies between the actual expenditures and the figures indicated in the statement.