An audit report revealed that the State is yet to receive over MVR 930 million in environmental damage compensation as of mid-September 2024.

The Compliance Audit Report covering 2019, 2020 and 2022, released by the Auditor General’s Office, penalties amounting to MVR 930,328,480 were imposed under the Environment Protection and Preservation Act of Maldives. However, the audit found that the majority of this amount remains outstanding, with the State yet to receive more than MVR 930 million in compensation.

The audit report recommends that corrective measures and enforcement actions be taken to recover the outstanding amounts and strengthen follow-up mechanisms to ensure penalties imposed are collected in a timely manner.

In addition to the uncollected environmental compensation, the audit identified several other governance and compliance issues across multiple projects and programmes.

One of the other key issues highlighted relates to the procurement of Microsoft volume licences by the National Centre for Information Technology (NCIT). The audit found that 41,577 licences were purchased under a three-year agreement signed with Microsoft in June 2021, at an annual cost of MVR 42.2 million.

However, a significant portion of the licences paid for in 2021 were not utilised, as they were not handed over to State institutions. The audit estimates that MVR 18.26 million was spent on unused licences, with an additional MVR 2.57 million spent on unassigned non-Microsoft 365 products. The report also noted that NCIT had not completed a comprehensive needs assessment prior to purchasing the licences and that usage was not adequately monitored.

The audit further found weaknesses in the implementation of the Home Solar Programme. An agreement signed in 2021 to operate the programme over five years was not accompanied by proper monitoring and evaluation of its objectives. The report noted that details relating to a MVR 20 million revolving fund established for the programme, including expenditure, receipts and customer payments, were not adequately tracked or reviewed.

Another concern raised in the report relates to waste management grants issued to local councils. Agreements worth MVR 10.7 million were signed with 20 island councils to establish waste collection systems and improve waste management. However, the audit found that the projects had not been completed as agreed and that work was not carried out in line with contractual requirements.

The Auditor General’s Office has recommended that ministries and implementing agencies strengthen monitoring, ensure compliance with agreements, and take action to recover outstanding funds, particularly in relation to environmental damage compensation owed to the State.