Devvadhoo council audit reveals gross violations

Northern Huvadhoo Atoll’s Devvaadoo island council had spent hundreds of thousands in violation of the Public Finances Act, the Auditor General’s Office (AGO) said.

The council’s 2015 audit found that it had not deposited the MVR 49, 729, which it said was the income accumulated for the state through the council in its consolidated fund.

The audit further revealed that the council had spent MVR 217, 206 to purchase goods ‘in violation of’ the public finance regulations.

The council had also, says the AGO, procured services worth MVR 82,945 and MVR 93,422 without holding the due bidding processes, as required by finance regulations. The audit also revealed that the council had acquired assets worth MVR 133,130 - an expense not included in the council’s accounts.

AGO’s audit also stated that the council spent MVR 141, 418 for reasons outside that which was stated in the annual budget for the year, in violation of article 99 of the law of decentralization.

This article states, which requires the formation and passing of a supplementary budget, which provides justification for the additional expense. No such budget nor justifications had been made.

The council’s practices were also in violation of regulations, including not holding general council meetings, negligence to attain due rent properties under the council and maintain a clear registry of such properties and their tenants, and unanimous negligence to submit expense and income reports.

AGO’s audits for 2015 also found discrepancies in the financial handlings of other councils, and most notably the Foreign Ministry.