An audit revealed that Eydhafushi Council failed to collect MVR 342,702 in revenue for 2024, violating State Financial Regulations requiring collection within one month. The uncollected funds include hotel rent, waste fees, and advance payments for a vehicle. The Auditor General has ordered an investigation and directed action against responsible parties for not following proper recovery procedures.
President Dr. Mohamed Muizzu meets Eydhafushi Council members
It has been revealed that the Eydhafushi Council did not receive MVR 342,702 due to it for the year 2024.
Under Article 5.24 (a) of the State Financial Regulations, any income owed to a state office for work performed, services rendered, rent for leased properties, or the sale of items must be collected within one month from the completion of the respective activity. Article 5.26 (a) further outlines the necessary measures for recovering outstanding funds.
According to the audit report, the Council Office indicated that letters had been sent to some parties to recover the outstanding funds, and telephone communications were made to remind certain parties about overdue payments.
However, the audit noted that the process of taking appropriate action in line with the State Financial Regulations, when payments were not received, was not fully carried out.
A significant portion of the outstanding amount consists of rent owed from the hotel section of the multipurpose building, waste collection fees from registered households and shops, and advance payments made for the procurement of a pickup truck.
In response, the Auditor General's Office has instructed the Council to act in accordance with Articles 5.26 (a) and (b) of the State Financial Regulations.
The office also directed that the matter be investigated, as failing to follow regulations to recover due funds is considered an unauthorized act under the State Financial Regulations.
Further, the Auditor General's Office has advised that action should be taken against the individual or parties found responsible after the investigation.
