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MVR 10.82 mil spent unlawfully from Water Crisis Fund: Audit report

Mariyam Malsa
18 June 2020, MVT 14:52
Fen Building in Male City, the headquarters of MWSC. PHOTO: HUSSAIN WAHEED/MIHAARU
Mariyam Malsa
18 June 2020, MVT 14:52

The Auditor General’s Office, on Wednesday, publicised an audit report on the 'Male' Water Crisis Management Fund', revealing that during 2014, expenses amounting to MVR 10.82 million were left unaccounted.

Therefore, the audit concluded that these funds were likely spent outside of regulation.

Maldives Water and Sewerage Company (MWSC) established the fund after a fire occurred at one of its desalination plants on December 4, 2014, which left the population of Male' without drinkable water for nine days.

In addition to consumption, most residents also depend on desalinated water for personal hygiene, household cleaning and other needs.

The report revealed that MWSC faced difficulties financing bills presented by the National Disaster Management Authority (MVR) during the period that the MVR 10.82 million was spent without specifying expenditure details.

According to the audit report, a total of MVR 127.52 million was accumulated by the fund, out of which MVR 85.82 million was spent on alleviating impacts of the crisis. The remaining was transferred to the Loan and Capital Works Fund.

The Auditor General’s Office also highlighted that the Male' Water Crisis Management Fund was not established as a trust fund in accordance with Section 25 of the Public Finance Act.

Furthermore, the report disclosed that MWSC was apportioned MVR 12.75 million from the fund, which the company did not spend to manage the crisis.

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