The Auditor General’s Office has stated that Mandhu College has already received MVR 19.7 million in compensation following the termination of the agreement related to the building where the Malé English School (MES) operated.

The findings were included in an assessment report on compensation claims filed in connection with the cancellation of the agreement between the Ministry of Education and the company involved in operating an international school at the MES building.

According to the audit report, several payments were made to facilitate the continuation of educational activities and related expenses. This included MVR 286,819 allocated to temporarily relocate the Arabiyya School to the MES building and MVR 264,300 for repairs to sections of the building used by the school. An additional MVR 451,189 was released to cover electrical repair works at the facility.

The report also noted that MVR 3.48 million was paid as compensation for the failure to vacate designated sections of the MES building during the agreed period.

Following the termination of the building agreement, MVR 15,012,500 was issued as direct damages by March 2021 to cover expenses such as rent and equipment required to ensure the immediate continuation of Mandhu College’s educational operations. In total, MVR 19,709,808 was paid to Mandhu College in connection with matters related to the agreement.

Mandhu College has since sought MVR 498,883,522 in additional compensation, claiming indirect damages. The claim includes estimated profits from operating Mandhu College, projected income from conducting night classes through Malé High Pvt Ltd, and anticipated earnings from operating an international school if the agreement had continued.

However, the Auditor General’s Office stated that the calculation of these projected profits does not comply with the guidelines established by the Supreme Court for determining future earnings when assessing compensation claims. The audit therefore concluded that the additional MVR 498 million compensation claim is not justified.