Thinadhoo Council flagged for improper financial transactions in audit report

The Auditor General's (AG) 2023 compliance audit report has revealed that the Gdh. Thinadhoo City Council administration has made serious errors in financial transactions.

Auditor General Hussain Niyazy released the audit report on Tuesday, which mainly highlights the irresponsible nature in the handling of funds by the Thinadhoo City Council and the inaccuracy of the accounts related to some matters.

According to the AG's report, 19 properties that are included in the register of money owed to the Thinadhoo City Council up to December 2023 does not match up to the calculations that have been done. According to auditors' figures, the council should receive MVR 3 million for the 19 plots. However, according to the council office registry, the allotted figure the council was to receive MVR 2 million within that period.

"The auditor's calculations show that there is a difference of MVR 832,012. In addition to that, the registry prepared by the council does not include MVR 459,991 owed by various parties. Due to this, it can be concluded that the figures in the registry prepared by the council is invalid," said the Auditor General.

The audit report states that council register shows that the amount Thinadhoo City Council administration was to receive up to 31st December 2023 was MVR 7 million. However, the council has not shared the accounts with the auditors even up til 30th July 2024, the report stated.

The audit report also notes that some travel allowances have been issued as travel allowance in violation of the rules set by the Finance Ministry.

A daily rate of MVR 500 was the amount given for trips to island and atoll councils, islands with airports and islands where local tourism has been introduced. However, the audit report states that the Women's Development Committee of the Thinadhoo City Council allocated the following figures for the following trips:

- Daily spending amount of MVR 700 for an experience-gaining trip to Kaafu atoll

- Daily spending amount of MVR 1,500 for a trip to Alifu Alifu Atoll

These expenditures were made without approval from the Ministry of Finance as stated by the audit report.

Therefore, the cost of accommodation on the trips is MVR 49,800 more than the rate fixed by the Ministry of Finance. There was also an extra MVR 1,000 allocated in accommodation for two individuals in the Kaafu Atill and Alifu Alifu Atoll trips stated by the audit report. The report also stated that the food budget had an extra spending of MVR 5,120.

"MVR 59,300 was issued for additional expenses on these trips. Due to a bill for those expenditures not being produced, it has not been possible to establish whether these expenses have actually been incurred," as was stated in the AG's report.

The AG stated, state revenue that was given to Thinadhoo City Council, a sum of MVR 175,859 up till 2023, was not allocated to the public account by February 2024.

The audit report said that fishing license fees, property zakat and ID card fees were the amounts not deposited in the public account.

Money recognized as state revenue is required to be deposited into the public account under the Public Finance Act.

Any person working in the Civil Service shall be entitled to any allowance only after the Civil Service Commission has notified the institution to pay such an allowance under the Civil Service Act.

However, according to the audit report, from 4th April 2022 to 31st December 2023, bid committee members of the Thinadhoo City Council Office received MVR 148,750 in violation of the guideline. This figure was accumulated due to the MVR 250 given to the bid committee for each evaluated and finalized case.

The AG ordered the recovery of the money as it was released without the permission of the Civil Service Commission.

Receipts were not prepared for 19 transactions worth MVR 24 million considered as audit samples. These transaction records are not available on the Viya portal as a result.

However, according to the Public Finance Regulation, payments made by check, account credit, debit or credit card must be accepted along with a receipt and must be kept up to date.

"Due to this, the revenue reports taken from the Viya portal will not be valid as these figures are not included," says the Auditor General.

Due to the issue of financial transactions, certain property lease dates not being properly monitored, not regularly getting the money due for certain properties and the council administration giving an unauthorized payment of MVR 101,000 issued as aid to a private organization in 2023 have been pointed out as issues as stated by the Auditor General.

On 25th June 2025, the Local Government Authority (LGA) moved to suspend Thinadhoo City Mayor Saud Ali for three months without pay over the various issues within the Thinadhoo City Council.

The LGA made the decision after an inquiry conducted by the authority. The LGA stated the main reason for the action was that the mayor was not fulfilling his responsibility to run the council in accordance with the law and guidelines.

The LGA's inquiry report also highlighted 19 cases related to the Thinadhoo City Council, which were:

- The issue of not replying to letters sent by agencies to the council.

- The issue of charging a fee of MVR 5000 for change of residence from Thinadhoo to other islands.

- Failure to comply with LGA's order to stop charging relocation fees.

- The issue of Thinadhoo City Council not sending information requested by Atoll Councils and other government agencies.

- Failure to comply to requests made by the Atoll Council.

- Giving allowances to the council bid committee and bid evaluation committee without approval from the Finance Ministry.

- Thinadhoo City Council's failure to cooperate with an Anti-Corruption Commission (ACC) investigation.

- The council's official social media accounts post to defame the council.

- The announcing for applications for 200 housing units in Thinadhoo without consultation and approval from the Ministry of Housing.

- The funds for a local monument project announced by the council being deposited into a private business account registered in the name of the mayor.