A recent audit report by the Auditor General's Office reveal over MVR 28.3 million of diesel supplied by Fuel Supplies Maldives (FSM) to Maldives Ports Limited (MPL) was "misplaced".
The special audit report exclusively focused on fuel purchase requests and subsequent transactions made from 2018 to 2020. The significant figure strongly evidenced towards involvement of employees from both MPL and FSM in the graft.
Earlier in 2021, several MPL employees were terminated for their alleged involvement in the scandal.
The report further detailed the nature of fuel siphoned out, which include MVR 9.6 million worth diesel issued to operate power generators, MVR 18.5 million towards operating tug boats, and MVR127,616 to operate the RTG cranes.
The misplaced fuel includes 799,900 liters worth MVR 7.2 million which FSM supplied via its bowsers to MPL Hulhumale' commercial harbor site, to refuel tug boats. However, according to the boat captains, FSM did not refuel the vessels.
Moreover, audit evidenced on delivery notes indicating supplied fuel for tug boats on dates where the vessels did not operate, or were on site.
For the period of 2018 to November 2020, request forms sent to MPL procurement stores were duplicated bearing forged signatures. Many of these forms were processed with amended dates, with the bills amounting to MVR 13.42 million. Moreover, graft conduct was observed through advance notice for fuel procurement.
Recurrent fuel requirements for MPL were communicated strictly through mobile phone calls instead of the official communication channel; email. This created room for misconduct, enhancing fuel supply to venues not designated for official MPL operations.
- Though commercial harbor operations declined in 2020 compared to 2021, diesel purchase was 59 percent higher amid the pandemic
- Fuel purchase limit was reduced in 2021 in comparison with 2020 to bring positive changes to MPL's internal controls
- A 2019 audit assessing fuel utilization in powering the generators indicated significant portions of diesel purchased for the purpose were either misplaced or "lost", however no internal assessment was conducted through individual observation of each department for their fuel requirement.
- The signed delivery note by the assistant manager of MPL Hulhumale' wing procurement store was a misdirection to show fuel was purchased for tug boats, though it was never supplied.
Due to the aforementioned elements, the report strongly suggests intimate involvement of both MPL and FSM employees in the graft. The Auditor General's office provided a set of nine distinct recommendations to MPL to strengthen its internal control parameters, which include;
- Identification of the culprits in the graft and filing a formal case with Anti-Corruption Commission (ACC) and Maldives Police Service for thorough investigation.
- Extracting damages/compensation from the persons involved in the graft.
- Collecting fuel consumption reports from all relevant MPL departments to better assess fuel usage in generator and vessel operations; which will be analytical tools for the following year's budget.
- Installing fuel gauges/meters to read stored fuel in tanks, tugs and vessels of MPL to ascertain the exact quantity of fuel purchased.
- Purchase orders should include support documents with valid authorization/signatures if and when delivery venue or quantity is amended.
MPL Chief Executive Officer Shahid Ali, during Sunday's press conference, confirmed terminating the individuals found guilty of involvement. He assured the case has been filed with Maldives Police Service for further investigation.
Sign In
