State failed to follow procedures in some compensation cases: Audit Office

Audit Office has said that state institutions have not fulfilled their responsibilities in handling compensation payments, resulting in significant financial losses to the government.

Speaking before Parliament’s Public Accounts Committee yesterday, Assistant Auditor General Ibrahim Aiman said government entities often cancel agreements without completing the required procedures.

“When contracts are terminated, there are instances where procedures are not followed or necessary documentation is not submitted. We will be requesting investigations into the responsible parties in such cases,” he said.

Aiman added that, in addition to government negligence, some private parties have exaggerated their claims or sought compensation in excess of what was due.

Auditor General Hussain Niyaazi also raised concerns over claims based on allegedly forged documents.

“In these cases, we have obtained original documents from banks and relevant agencies, as well as statements from individuals whose signatures appear on them. We are currently working on four reports involving claims of more than MVR 100 million,” Niyaazi said.

While emphasizing that fair compensation should be given when the state fails to pay for contracted work, Niyaazi warned against systemic loopholes. He urged legal reform to prevent opportunities for fraud and wrongful amendments to agreements.

The Auditor General’s Office is currently auditing 17 compensation cases on the orders of the Public Accounts Committee. These include instances where islands and lagoons were given as compensation, in addition to cash payments. Audit Office said the audit report is expected to be released in August, and the draft has already been completed.

According to the Audit Office, the total amount of compensation paid by the state in the cases under review stands at MVR 6 billion. One case highlighted in a report released yesterday revealed that the state had overpaid a company by MVR 23 million.