Audit of Arbitration Center: MVR 3.2 Million Spent Without Achieving Objectives

The Maldives International Arbitration Centre (MIAC) has spent 3 million Rufiyaa over the past three years, despite failing to facilitate any actual arbitration proceedings during this period.

The Auditor General’s Office has released the 2025 compliance audit report for the Maldives International Arbitration Centre, an institution established during President Ibrahim Mohamed Solih’s administration. The report indicates that the center’s financial operations and management have been conducted in accordance with the State Finance Act and its accompanying regulations.

The Maldives International Arbitration Centre (MIAC) was initially allocated a budget of MVR 3,667,255 for the past year. However, following budgetary adjustments, the final figure was revised to MVR 3,391,157. By the end of 2025, the center’s total expenditure amounted to MVR 3,330,473. Consequently, MVR 276,098 remained from the original allocation, while MVR 60,685 was left over from the final revised budget.

An analysis of MIAC's expenditure reveals that 98 percent of its total budget, amounting to MVR 3,247,953, was utilized for recurrent expenses. Within this category, personnel costs accounted for MVR 2,382,916, representing 76 percent of the total recurrent expenditure. Meanwhile, capital expenditure comprised only 2 percent of the overall spending, totaling MVR 82,520.

According to the Auditor General's report, the center's budget expenditures remained within the authorized limits and were utilized strictly for purposes approved by the People's Majlis. The report further noted that the audit was conducted in accordance with the international standards established by INTOSAI.