Addu City Council paid MVR 782,942 for security services at several council properties without valid contracts, according to audit reports published by the Auditor General's Office.

The finding was included in the council's 2021 and 2022 audit reports, which noted that public institutions are required under the Public Finance Regulation to initiate procurement processes at least two months before the expiry of service contracts to ensure uninterrupted service delivery.

However, the audit found that the council continued obtaining security services for a number of properties after existing contracts had expired without appointing new service providers through the required procurement process. As a result, security services continued to be provided and paid for without formal agreements in place.

The report also found that the council spent MVR 261,135 over a period of 15 months and 10 days after the contract for security services at the Hulhudhoo Office expired on May 19, 2023. A further MVR 260,000 was spent over 10 months and 25 days following the expiry of the security contract for the Hulhudhoo flats on October 5, 2023.

The audit also found that MVR 125,932 was spent on security services at the Maradhoo Office during the eight months following the expiry of its contract on March 31, 2024. In addition, MVR 97,838 was paid for security services at the Maradhoo-Feydhoo Office during a period of two months and four days after its contract expired on September 26, 2024.

Another MVR 38,037 was spent on security services at Koagannu Cemetery for four months and 22 days after the relevant contract expired on May 20, 2023, bringing the total expenditure on services provided without contracts to MVR 782,942.

The Auditor General's Office noted that State institutions are required to procure and pay for services under agreements established in accordance with the Public Finance Regulation. It recommended that the council ensure procurement processes are initiated before contracts expire, refrain from obtaining services without contracts, and strengthen oversight of agreements relating to security services.