The 2023 compliance audit of the Thinadhoo City Council Office has revealed multiple financial irregularities, including the failure to collect over MVR 7.5 million in rent and waste collection fees.

According to the report issued by the Auditor General's Office, the council had not recovered a total of MVR 7.5 million as of December 31, 2023. This includes MVR 7.07 million recorded in the council’s own outstanding payments report and an additional MVR 459,991 that was not included in that report.

While letters had been sent to some individuals to recover the outstanding amounts, the report stated that in many cases, the council failed to take the legal measures required by law to enforce payment.

The audit also highlighted several issues related to travel and financial oversight. The council was found to have overpaid MVR 49,800 in accommodation costs during official trips, and expenses totalling MVR 59,300 were unaccounted for, with no bills submitted to support those payments. Furthermore, State revenue of MVR 175,859 collected by the council during 2023 had not been deposited into the public bank account as of February 27, 2024 - the date of the audit.

Additional irregularities were uncovered in the council’s handling of allowances. From April 4, 2022 to December 31, 2023, the council paid MVR 148,750 in committee allowances to members of the Bid Evaluation Committee and Bid Committee without obtaining approval from the Civil Service Commission.

In October 2023, before Thinadhoo was officially designated as a city, seven council members were paid an additional MVR 118,210 based on the rate set for city council members. Of this amount, MVR 70,024 paid to four members remains unpaid to the council as of July 7, 2025.

The audit calls attention to the need for stronger internal controls and better compliance with public finance regulations to prevent further financial mismanagement at the council level