WAMCO files complaint over expenses breaching regulations

Waste Management Corporation (WAMCO) has filed a complaint with relevant authorities over payments totaling MVR 6.3 million made in advance for dump trucks and a landing craft, which were not delivered within the agreed timeframe.

WAMCO said it signed an agreement in 2021 with a local company to procure 10 two-ton dump trucks and a landing craft. According to the contract, MVR 6.3 million was paid in advance on 29 December 2021, with delivery expected within four months.

However, as of 30 October 2022, the landing craft had still not been delivered.

It remains unclear whether the vehicles have since been received.

The company said the agreement does not provide for compensation for losses suffered due to the delay.

WAMCO said the supplier had not refunded the advance of MVR 1.7 million or the additional MVR 4.6 million paid for the purchase.

WAMCO also highlighted internal financial management issues.

Transactions with third-party outlets were not properly recorded, with outstanding balances maintained manually in spreadsheets rather than through a financial management system.

An audit of 231 random transactions between 1 January 2021 and 31 December 2022 found that MVR 6 million was paid without proof of receipt of goods or services.

The company noted that expenditures outside the approved budget had occurred in 2018 and 2019, including 178 working advance transactions totaling MVR 1.7 million issued for purposes not covered by the finance policy.

WAMCO said it will continue to disclose information transparently and confirmed that the cases have been referred to the Anti-Corruption Commission (ACC), the Auditor General’s Office, and the police, with those responsible to be brought to justice.