Audit reports for 2021 and 2022 have found that the Addu City Council increased the size of several plots allocated for tourism development without public announcement and amended head lease agreements improperly.

Reports issued by the Auditor General’s Office revealed the council transferred head lease and development rights for eight tourism plots during 2021 and 2022. The audit found that additional land was added to existing plots and new agreements were drafted without public disclosure.

Five plots in Feydhoo originally measuring 29,000 square feet were expanded by 139,945 square feet, bringing the total to 163,945 square feet. Similarly, three plots in Meedhoo were increased from 17,000 square feet to 44,595 square feet after an additional 27,595 square feet was added.

Auditors also found that lease agreements were amended despite outstanding rental payments owed to the council. As per the report, MVR 244,481 remained unpaid for the Feydhoo plots, while MVR 194,816 was outstanding for the Meedhoo plots, bringing total arrears to MVR 439,297.

The report said the revised agreements did not include provisions for recovering the outstanding amounts.

In addition, the audit found that the council approved the addition of 2,000 square feet to a 3,000-square-foot tourism plot in Hithadhoo and a further 1,800 square feet to another 3,000-square-foot guesthouse plot.

In total, 166,340 square feet of additional land was added across Hithadhoo, Feydhoo and Meedhoo beyond the original allocations.

The Auditor General’s Office said the changes disadvantaged other potential bidders and raised concerns over compliance with established procedures.