Audit reveals government overpaid for military housing flats

An audit of the Defence Ministry has revealed that the state project to construct 300 housing flats for servicemen and women in Hulhumalé, the capital’s fast-growing urban extension, was severely overpaid for.

The Auditor General’s Office revealed on Tuesday its audit for the ministry’s expenses in 2015, which shows that that it had paid MVR 129 million when the cost of construction was stated to be 33.3 million, when the government announced that it had terminated the project.

The audit states that ministry had paid 115.3 million for the construction as an initial payment and collected 10.6 from the officers that had acquired the flats.

It also revealed that the ministry did not inspect the progress of the project and had paid beyond the work done.

The Auditor General’s office stated that a number of bills for services rendered ranging from MVR 100,000 to 150,000 had been signed off by the officer charged with reviewing the progress of the project.

The office had asked the ministry to begin work to re-attain the excess amount that had been paid to the company appointed to construct the flats.

The ministry had signed a contract with Noomadi Resorts and Residence Ansalt to build the flats.