The 2021 and 2022 audit reports of the Addu City Council have found that the council has not recovered advance payments made for the establishment of Neighbourhood Fish Processing Plants in Addu City, despite the projects not being completed as agreed.

The report issued by the Auditor General's Office states two contractors were each paid MVR 900,000 in advance for the construction of fish processing plants in Hithadhoo and Maradhoo, amounting to a total of MVR 1.8 million.

The audit found that the agreements were later cancelled due to delays in project implementation. However, the council had not recovered the advance payments at the time of the audit.

The council has since taken the matter to court to recover the funds, and according to the report, the court ordered the contractor to repay the advance within three months on 11 February 2025.

The council had awarded contracts to establish fish processing facilities in three locations across Addu City. Work on the Hithadhoo facility has since been completed, with the council informing the audit office that the plant became operational on 17 February 2026.

For the Maradhoo project, the contract was awarded on 22 July 2020 at a cost of MVR 27.7 million with a planned completion period of 274 days. However, despite additional expenditures of more than MVR 2 million, the project was not completed, leading to termination of the agreement. A new contract was signed with another party on 13 November 2025 to continue the work.

For the Hulhumeedhoo project, the contract was awarded on 22 July 2020 at a cost of MVR 12.6 million with a completion period of 330 days. The project has since been completed, and fish processing trials have been carried out. The facility is now awaiting approval from relevant Government authorities to begin sales operations.