Bodufolhudhoo Council allocated land plots in violation of regulations: Audit report

The Auditor General’s Office has stated that the AA. Bodufolhudhoo Island Council failed to follow established regulations when leasing land under its jurisdiction.

The Auditor General’s Office, in its 2024 compliance audit report for the North Ari Atoll Bodufolhudhoo Island Council, noted that Clause 6(d) of the Regulation on the Allocation and Registration of Land for Non-Residential Purposes allows for the allocation of land for specific purposes through public announcement, even in instances where the standard bidding process outlined in Clause 6(a)(2) does not apply.

They are:

1. Land leased for a period of three years or less for activities such as fish processing (cooking and drying), salting, and sea cucumber fishery operations.

2. Land leased for agricultural purposes for a duration of three years or less.

3. Land leased for animal husbandry for a period of three years or less.

4. Land leased for a period of one year or less for the operation of food cart businesses.

5. Land leased for a period of one year or less for cleaning and maintenance purposes.

The audit report states that the council leased land for food stalls and outdoor restaurant seating in 2024 without a public bidding process. Furthermore, the report highlights that these land leases were issued in violation of the council's approved Land Use Plan.

Consequently, the Audit Office has advised the Council to allocate land in accordance with the procedures stipulated in Section 6(d) of the Regulation on the Lease and Registration of Land for Non-Residential Purposes.

Furthermore, the report noted that the council's administrative land registry has not been compiled.

The report noted that Section 23(a)(12) of the Decentralization Act mandates island councils to compile and maintain a local land registry. Furthermore, councils are required to provide the necessary data to the national authority responsible for maintaining the national land registry. Additionally, Clause 2 of the land registry management guidelines established by the Local Government Authority (LGA) stipulates that every administrative division must ensure that its respective island councils record and maintain a comprehensive registry of all land within their jurisdiction.

The audit report further stipulates that this registry must categorize land based on its specific allocation. This includes residential plots, government-held land, and commercial leases, as well as land designated for public utility, temporary vessel maintenance yards, private use, industrial activities, and social purposes.

However, the report highlighted that the council office had failed to maintain a land registry up until the end of 2024.