The Auditor General’s Office has reported that Fuvahmulah City Council is owed MVR 3.6 million in outstanding revenue and has not deposited over MVR 1 million into the public account, citing multiple instances of non-compliance with public finance regulations.

According to the compliance audit for 2023 and the audit of the council’s financial statements for 2024, the council had not received MVR 4,387,485 as of 31 December 2024. The audit report stated that only MVR 747,714 was recovered in 2025, leaving an outstanding balance of MVR 3,639,771 as of 25 December 2025.

The council informed the Auditor General’s Office that letters and phone reminders had been issued to parties required to make payments, and that efforts were underway to establish a repayment schedule spread over 12 months. However, the audit noted that the council had not taken recovery action in accordance with procedures outlined under the Public Finance Regulation.

The audit further highlighted that State revenue collected by the council must be deposited into the public account as required under the Public Finance Regulation. As of 31 December 2024, the council had failed to deposit MVR 1,040,405 as State income, including MVR 827,305 collected for ID cards and MVR 213,100 from security certificates.

In addition to revenue management issues, the audit also flagged shortcomings in project oversight. A contract awarded for the installation of street lights in Fuvahmulah City, valued at MVR 1,049,976, was scheduled for completion within 105 days by 8 January 2024. The contract was terminated on 7 October 2024 after the project failed to progress, and the audit noted that due to negligence by the council, MVR 83,998 was not recovered as a performance guarantee.

The Auditor General’s Office stressed the need for the council to strengthen financial controls, ensure timely recovery of public funds, and comply fully with statutory requirements governing revenue collection and project management.