Author: Ahmed Naish

President’s Office spent MVR30 million in excess of approved budget in 2011, audit reveals

The President’s Office (PO) spent MVR30.6 million (US$1.9 million) in excess of the approved budget in 2011 while MVR2.8 million (US$181,582) was used to cover expenses that were not directly related to the office’s mandate, the PO’s audit report (Dhivehi) has revealed.

Among the unrelated expenses were MVR1.8 million (US$116,731) spent on trips by former President Mohamed Nasheed to 88 islands ahead of the February 2011 local council elections, MVR904,855 (US$58,680) spent for then-Vice President Dr Mohamed Waheed to stopover in Singapore after attending the “Third Symposium on the European Academic Space” in Italy, and MVR139,676 (US$9,058) spent on a trip by the PO to check progress on the editing of ‘The Island President’ documentary.

While MVR526,454 (US$34,140) was spent for two trips to the United States by the vice president and his family, the report made public yesterday noted that there were no details of expenditure for MVR364,267 (US$23,623) of that amount.

Moreover, MVR235,556 (US$15,276) was spent out of the vice presidential residence’s budget for the vice president, his wife, child, and father to make the Hajj pilgrimage, but there were no details of expenditure for MVR60,524 (US$3,925) spent on food and accommodation.

“And while MVR69,112 (US$4,481) was spent for medical treatment during a trip by the vice president and his wife to Singapore in 2011, no documentation concerning the medical treatment was submitted,” the report stated.

Similarly, the report noted that MVR462,326 (US$29,982) was spent to cover the medical expenses of the president’s family in 2011, but were no documents related to the medical expenses.

A total of MVR677,369  (US$43,927) was meanwhile spent in 2011 on holidays for the president’s family, the report revealed.

Auditors also found that the PO paid mobile phone bills for political appointees out of the office’s budget in the absence of either a ceiling limit or rules to determine whether the calls were made for official purposes.

While MVR187,397 (US$12,152) was loaned from the PO budget to political appointees for personal expenses, auditors found that MVR184,191 (US$11,944) had not been repaid.

Moreover, MVR51,669 (US$3,350) was spent out of the vice presidential residence’s budget to pay mobile bills of the vice president’s wife, Madam Ilham Hussain, in contravention of the law governing privileges and state benefits for the vice president.

While the law stipulates that security for the vice president and his family must be arranged by the Ministry of Defence and National Security, auditors found that travel expenses for bodyguards during unofficial overseas trips by the vice president and his wife were settled out of the vice presidential residence, Hilaaleege’s budget.

Among other cases flagged in the report, auditors found that the PO had to pay MVR555,808 (US$36,044) as compensation to Shady Cabin after screws and sponges from 170 rented chairs went missing. The chairs were rented for the SAARC summit held in Addu City in November 2011.

The PO also covered expenses for foreign dignitaries out of its budget in the absence of rules for hospitality, the report noted.

Auditors found that MVR294,037 (US$19,068) was spent out of the presidential residence Muleeage’s budget for the stay of two British citizens from February 16 to 23.

Moreover, MVR29,058 (US$1,884) was spent out of the Muleeage budget for the “son of the president of a neighbouring country” to stay in a resort.

Auditors also discovered that there were 25 cable TV decoders in Muleeage and 12 decoders in Hilaaleege, for which MVR174,080 (US$11,289) and MVR81,917 (US$5,312) respectively was spent in 2011.

Lastly, auditors found that the PO did not maintain inventory records in accordance with public finance regulations. Plots of land and buildings under the care of the official residences of the president and vice president as well as fittings, furniture, and vehicles were not valued and included in the asset register.

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No re-votes as High Court concludes Majlis election-related cases

The High Court has delivered verdicts today in 13 election-related cases filed by losing candidates in the March 22 parliamentary polls seeking annulment of the results.

In 12 cases, the High Court ruled that there were no grounds to annul the results and order a re-vote as the evidence submitted was not sufficient to prove electoral fraud.

In the case concerning the Lhaviyani Kurendhoo constituency, the court ruled that there were no grounds to grant the request for a recount of ballot boxes.

Losing candidates from both opposition and government-aligned parties had challenged the outcome of the Majlis elections.

The 13 constituencies were Haa Dhaal Nolhivaram, Shaviyani Funadhoo, Lhaviyani Kurendhoo, Lhaviyani Naifaru, Kaafu Kaashidhoo, Vaavu Felidhoo, Thaa Thimarafushi, Laamu Isdhoo, Gaaf Alif Villigili, Gaaf Alif Gemanafushi and the mid-Hithadhoo, Hithadhoo North and Feydhoo constituencies in Addu City.

While opposition Maldivian Democratic Party (MDP) candidates for Kaashidhoo, Nolhivaram, Feydhoo and Funadhoo filed cases at the High Court on their own accord, cases concerning the Villigili, Isdhoo, and Gemanafushi constituencies were filed by the party.

The rest of the cases were lodged by candidates of the ruling Progressive Party of Maldives (PPM) and its coalition partner Jumhooree Party (JP).

Coalition concerns

Following his loss to an independent candidate, the incumbent JP MP for Lhaviyani Naifaru, Ahmed Mohamed, accused the PPM of attempting to “destroy” its coalition partner.

The veteran MP explained that PPM members contested as independents in constituencies assigned for the JP in the seat allocation deal reached among the coalition parties.

While the independent candidate – Ahmed Shiyam – used the PPM party office, colour, and logo in his campaign for the Naifaru seat, Ahmed Mohamed alleged that the government gave jobs and promotions in the nearby Felivaru fish cannery at his opponent’s request.

“And if that wasn’t enough, [they] anti-campaigned against me while voting was ongoing,” he claimed.

Shiyam – along with three of the five successful independent candidates – signed for the PPM within days of the polls’ conclusion.

JP MP for the Hithadhoo South constituency, MP Hassan Latheef, also accused the PPM of campaigning against him after two senior members of the ruling party contested as independents.

Latheef reportedly alleged that the PPM members used money to bribe voters and influence within the government to provide jobs.

Latheef also noted that he was not invited to a campaign rally in Hithadhoo that was attended by President Yameen. The two independent candidates were however present at the rally, he said.

Marked ballots

Meanwhile, briefing members of the MDP’s national council last week, former Human Resources Minister Hassan Latheef – a member of the party’s legal committee – explained that that the party filed cases concerning the Villigili, Isdhoo, and Gemanafushi constituencies.

As both the constitution and electoral laws stipulate that voting must be conducted through secret ballot, Latheef said the Elections Commission was responsible for ensuring secrecy of the ballot.

Based on precedents established by the High Court and Supreme Court, Latheef explained that the MDP had asked the High Court to declare that ballot papers tagged with a symbol or mark would be invalid.

In the Gaaf Alif Villigili constituency election, Latheef said that about 300 ballot papers were tagged, all of which were counted as valid votes for the PPM candidate.

Similarly, in the Laamu Isdhoo constituency, Latheef said the number of tagged ballot papers was more than 150 while there were more than 100 tagged ballot papers in the Gemanafushi constituency.

Latheef noted that in all three constituencies, the margin between MDP and PPM candidates was smaller than the number of tagged ballot papers identified by observers.

Under a precedent established by a Supreme Court ruling, Latheef said that if the number of ballots whose secrecy was compromised exceeds the margin of victory, the poll would not be valid.

As compromising the secrecy of the ballot in any election was illegal, Latheef contended that tagged ballot papers should be considered invalid votes.

Earlier this month, the MDP issued a press release accusing government-aligned parties of unduly influencing the March 22 polls through coercion and intimidation in addition to vote buying.

Some voters were asked to tag their ballot papers with a special mark or symbol for PPM observers and candidate representatives to identify their votes, the party alleged.

Voters were threatened with dismissal from their government jobs if they did not follow the instructions and proved they voted for the coalition candidate, the press release stated.

In the wake of the Majlis elections, NGO Transparency Maldives stated that while the polls were well-administered and transparent, “wider issues of money politics threatens to hijack the democratic process”.

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Parliament approves import duty hikes

Parliament has approved amendments to the Import-Export Act to raise import duties on a range of goods as part of the current administration’s revenue raising measures.

The amendment bill submitted on behalf of the government by MP Mohamed Rafeeq Hassan was passed with 34 votes in favour and 19 against at yesterday’s sitting of the People’s Majlis.

Once the amendments (Dhivehi) are ratified by the president, a 15 percent tariff will be reintroduced for construction material, articles of apparel and clothing accessories, silk, wool, woven fabrics, cotton, man-made filaments, wadding, special yarns, twine, cordage, ropes, cables, carpets and other textile floor coverings, lace, tapestries, trimmings and embroidery.

Tariffs will also increased from the current zero percent to five percent for sugar confectioneries and diesel motor oil and raised from 10 to 15 percent for organic chemicals and compounds of precious metals, rare-earth metals, radioactive elements or isotopes.

Custom duties for vehicle seat covers will be raised from 35 percent to 75 percent.

While custom duties for organic and chemical fertilisers and pesticides as well as for live chickens, ducks, turkey, quail, and chicks will be eliminated, duties for polythene bags and items that contain hydrochlorofluorocarbons (HCFCs) will be hiked to 400 percent and 200 percent respectively.

The tariff hikes reverses changes brought to the law when import duties for most items were eliminated in late 2011 by the administration of former President Mohamed Nasheed ahead of the introduction of a Goods and Services Tax (GST).

Import duty was also eliminated for food items – with a few exceptions such as bananas, mangoes, watermelons, and papaya to protect the local agriculture industry – as well as for construction material, fabrics and garments, paper and books, environment friendly goods, paints, floor coverings, footwear, steel, medicine, medicinal machineries and products, fertilisers, electric vehicles, cosmetic goods and domestic appliances.

During yesterday’s final debate on the government-sponsored amendments, MPs of the opposition Maldivian Democratic Party severely criticised the indirect tax hikes, contending that the burden of increased prices of goods would be borne by ordinary citizens.

In a press statement yesterday, newly-appointed Maldives Monetary Authority Governor Dr Azeema Adam predicted a rise in the inflation rate as a result of hiking tariffs.

The central bank previously estimated the inflation rate to hold steady at four percent as global commodity prices were expected to decline this year.

The Maldives Customs Service meanwhile revealed last week that revenue in March increased by 12 percent compared to the same period in 2013 on the back of a 30 percent increase in imports.

“Total revenue collected in March 2014 was MVR 139.7 million, while it was MVR 124.8 million in March 2013,” MCS said in a statement.

“Importation of fuel (such as diesel, petrol and jet fuel) shared 36 percent of total imports in March, twice the value of food items imported during the same period. Third most imported category of goods in March was machinery and electronics which accounted for 15 percent of total imports in March.”

Exports, however, dropped by 65 percent last month compared to the same period last year, which was “linked to the 97 percent reduction in the volume of exports by the state-owned Kooddoo Fisheries Maldives Ltd, whose main export is Frozen Skipjack Tuna to Thailand.”

Customs also revealed that imports in the first quarter of 2014 amounted to MVR7.1 billion, which represented an 11 percent increase compared to the first quarter of 2013.

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Police defend Anbaraa arrests as MDP alleges breach of constitutional rights

The Maldives Police Service (MPS) has denied allegations by the opposition Maldivian Democratic Party (MDP) that constitutional rights and procedures were violated in the arrest of 79 youth last weekend from a music festival in an uninhabited island.

In a press release issued in response to a statement yesterday by the MDP’s rights committee, police insisted that all the suspects taken into custody from Vaavu Anbaraa were informed of their constitutional rights as well as the reason for the arrest.

“In addition, they were informed in writing of the reason for their detention in accordance with the law, and they were told that they had the right to legal counsel,” the press release read.

It added that all suspects detained from Anbaraa were brought before a judge within 24 hours of the arrest. Police also noted that the island was raided with a court order.

The MDP’s rights committee however contended that procedures specified in the constitution for arrest or detention – such as informing suspects of the reasons in writing within 24 hours, providing access to legal counsel, and presenting suspects before a judge within 24 hours for a remand hearing – were breached by the police.

Moreover, the committee alleged that police did not act in accordance with regulations governing the exercise of law enforcement powers concerning arrest and detention.

The rights committee suggested that it was “absolutely necessary” to ensure that law enforcement efforts are focused on citizens and the community while respecting human rights and democratic principles.

“While police powers and discretion is afforded within specifically determined parameters of the law, we remind the Home Minister of the Maldives at this juncture that police powers and discretion cannot be used outside those parameters,” the MDP statement read.

The police statement however stated that the MPS “assures the beloved citizens of Maldives that no actions that could violate human rights or demean human dignity were committed in the operation conducted in V. Anbaraa.”

The press release went on to address the MDP’s statement, contending that it was “misleading” and expressed in a manner that “encourages youth to commit crimes”.

Police further argued that the opposition party’s statement could confuse the public concerning “the principles and rules of the democracy that Maldivians are seeing today.”

Police also reminded the MDP that actions encouraging drug use or trafficking were prohibited by article 128 of the Drugs Act.

The police statement concluded with an appeal to all parties to cooperate with law enforcement efforts to “safeguard youth and this society from the danger of drugs” and refrain from actions that could cause loss of public confidence in the MPS.

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Parliament approves amendment for state to cover expenses of president’s private residence

Parliament today voted through an amendment to the law governing renumeration and benefits for the president and vice president making it mandatory for the state to cover expenses of the pair’s private residences.

If either the president or vice president choose not to live in the official residences, the amendments stipulate that the state should provide employees and cover other expenses required for the private residence out of the budget allocated for the official residence.

However, aside from expenses for maintaining security, the amendment states that the expenses should not include “any additional capital expenditures.”

The amendment bill proposed by ruling Progressive Party of Maldives (PPM) MP Riyaz Rasheed was approved with 35 votes in favour, 15 against and one abstention.

The amendments (Dhivehi) were sent to a select committee for review following preliminary debate on March 31. The opposition Maldivian Democratic Party was not represented in the committee, which consisted exclusively of pro-government MPs.

Immediately after being sworn in on November 17, President Abdulla Yameen announced he and his vice president – Dr Mohamed Jameel Ahmed –  would be fulfilling a campaign pledge of only taking half of the MVR100,000 (US$6500) salary afforded to the head of state.

“The reason behind this is that Dr Jameel and I both live a simple life. No matter what has been said about us we are not wealthy. We want to be an example to others and lead by example,” Yameen said.

After assuming office, President Yameen announced that he would continue to live in his private residence while Dr Jameel moved into the official vice presidential residence, Hilaaleege.

However, despite Yameen’s decision, the budget allocated for the official residence was increased by MVR2 million (US$130,208) in the state budget for 2014 – rising to MVR19.1 million (US$1.2 million).

In December last year, Parliament’s Budget Review Committee Chair Gasim Ibrahim – leader of the JP – said the increased budget was necessary in case the president decides to move to Muleeage.

Highlighting the increased budget for Muleeage at the time, MDP Spokesperson Hamid Abdul Ghafoor described Yameen’s decision to live in his personal house as a “symbolic act.”

“Unlike in the past, even media points out inconsistencies in what leaders say and what reality presents these days. I do not believe the public will be deluded about any of this,” Hamid said.

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Police investigating threatening phone call from MP Siyam to sacked resort worker

Police have begun investigating a threatening phone call from MP Ahmed Siyam to a former employee at his Vilu Reef resort who was sacked last month.

The ex-resort worker, Hussan Yousuf, submitted the case to police last week with an audio recording of the phone conversation.

In the approximately three-minute long clip shared with local media, the resort tycoon – owner of the Sun Travels & Tours group and leader of the government-aligned Maldives Development Alliance – is heard threatening to “destroy” Yousuf, claiming that he was out to harm Siyam’s business interests.

“Is it because you want to go to jail that you’re trying to destroy my business?” a voice that appears to be Siyam’s is heard saying.

A punishment from God such as paralysis could befall Yousuf as a result of challenging or confronting Siyam, he suggests.

In response, Yousuf tells the resort magnate that he was seeking his rights and refers to a petition signed by over 150 staff listing their grievances.

“Let me tell you, you don’t have any rights, [Vilu Reef] is not your place,” Siyam replies, claiming that Yousuf begged for a job at the resort.

Siyam further warned the dismissed employee that he could exercise the power of the government to incarcerate Yousuf.

“If you keep pestering me like this I can send my team to really pester you. If you try to harm my business I will destroy you. [God] will not even give any money in this life to an evil devil like you. Woe on you, evil devil,” Siyam is heard saying before hanging up the phone.

Yousuf meanwhile told opposition-aligned private broadcaster Raajje TV that Siyam’s threats have caused psychological distress to him and his family.

Police told Yousuf that the threats would be investigated as a serious case, he said.

The MP for Dhaal Meedhoo – reelected in the March 22 parliamentary polls – is also currently on trial for alcohol smuggling and possession after a liquor bottle was discovered by customs officers at the airport upon his return from an overseas trip in March 2012.

At the last hearing of the case in March, Siyam denied the charges at the Criminal Court.

Meanwhile, following the presentation of the staff petition to the Vilu Reef management last month, 18 employees were fired and given an hour to leave the island.

Tourism Employees Association of Maldives (TEAM) Secretary General Mauroof Zakir told Minivan News that the association would assist the staff in taking the case to the Employment Tribunal, though he felt there would be “no hope” for a fair case.

“Shiyam is very strong here,” he noted, “one of the partners of the government.”

“Since 2012 the decisions are against international standards and international best practice,” he added. “It’s all corrupt judiciary, and High Court decisions against employment cases are one of the key factors.”

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All 79 suspects arrested from Anbaraa festival tested positive for drugs, police reveal

All 79 suspects taken into police custody from the island of Anbaraa in Vaavu atoll tested positive for drugs, police have revealed.

Briefing the press today, Chief Inspector Abdulla Satheeh explained that police received intelligence information suggesting that alcohol and drugs were being used and sold at the two-day music festival held on the uninhabited island.

Police raided the island with a court order at midnight on Friday night (April 18), he noted.

The Drug Enforcement Department, Specialist Operations, police intelligence department, and the forensic department conducted the operation, Satheeh said.

Upon searching the island as well as the 198 partygoers, Satheeh said police discovered different types of drugs and more than MVR90,000 (US$5,836) in cash.

In addition to beer cans, the drugs confiscated from the island included pills, LSD stickers, and hash oil joints as well as rubber packets, cellophane packets, and film canisters containing cannabis, Satheeh said.

The drugs, beer cans, and cash were displayed in a video presentation at the press briefing.

While all 198 persons on the island were held and searched, the chief inspector noted that the 79 individuals were arrested after drugs were found either in their possession or at the scene.

Police revealed earlier that the 79 suspects included one female minor, 19 women and 59 men, including one foreign male.

While the remaining 119 were released without charge, Satheeh revealed that none of them were tested for drug use.

Arrangements were not in place to conduct drug tests on the island, he added.

The 79 persons taken into custody were arrested either with drugs in their possession or because police suspected they were under the influence of drugs, Satheeh noted.

Contrary to media reports claiming that a number of people were naked, Satheeh said individuals of both genders were “wearing revealing clothing” when police raided the island.

Asked about the organisers of the festival and lease holder of the uninhabited island, Satheeh said he could not disclose further details as the initial stage of the investigation.

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Audit uncovers corruption in MNBC sales agent agreement with BIG

A special audit of the defunct Maldives National Broadcasting Corporation (MNBC) has uncovered corruption in a deal designating Business Image Group Pvt Ltd (BIG) the former state broadcaster’s exclusive sales agent with a 15 percent commission from the main income items.

The audit report (Dhivehi) made public on Thursday (April 17) revealed that an agreement was signed with BIG on March 7, 2010 to formulate a business plan and provide marketing consultancy.

In addition to making BIG the exclusive sales agent for a five-year period, MNBC agreed to pay the company a monthly fee of MVR25,000 (US$1,621) as well as 15 percent of all income generated through BIG.

Auditors found that the contract was awarded to BIG without a transparent and competitive bidding process.

While an announcement seeking a marketing consultant was made on January 3, 2010, the audit report noted that it made no mention of either an exclusive sales agent or a sales commission.

“Therefore, the bidding process was carried out in a way to facilitate undue benefit to a particular party,” the report stated.

The report further noted that MNBC did not share any documentation from the bidding and evaluation processes with the audit office.

In the absence of any documentation with the exception of the MNBC board’s decision to make BIG the exclusive sales agent, the report stated that auditors were unable to ascertain whether a cost-benefit analysis was carried out.

While MNBC’s income increased in 2010 and 2011, the report explained that there was no measure to evaluate BIG’s performance or assess the company’s contribution to the revenue growth.

MNBC was formed in January 2009 as a 100 percent government-owned corporation by the administration of former President Mohamed Nasheed.

The television and radio channels operated by the company were handed over to the Maldives Broadcasting Corporation (MBC) – created by an act of parliament in June 2010 – in the wake of the controversial transfer of presidential power on February, 7, 2012, during which the state broadcaster was stormed by mutinying police and soldiers.

The audit meanwhile revealed that as of August 2012 BIG was paid a total of MVR5.78 million (US$374,837) as sales commission.

Auditors were unable to verify from the available documentation – payment vouchers and invoices submitted by the company – that the commission was provided from additional income generated as a result of BIG’s work.

Moreover, BIG sought a further MVR6.7 million (US$439,040) in October 2012. The release of the funds was however halted on instruction from the Anti-Corruption Commission (ACC) pending the completion of an investigation.

Auditors concluded that BIG was not owed a commission from income generated from public announcements, SMS, my tones, advertisements, and airtime sales.

Based on the findings, Auditor General Niyaz Ibrahim recommended that the case should be investigated by the ACC and that action should be taken against the officials responsible for drawing up the agreement in a manner detrimental to the interests of MNBC.

Meanwhile, in March this year, three pro-government Malé City councillors alleged corruption in the awarding of the ‘Clean Green Malé’ project to BIG by the opposition Maldivian Democratic Party-majority (MDP) council. The allegations by the ruling Progressive Party of Maldives councillors were denied by those of the opposition party.

Other cases

The special audit also flagged four other cases of ostensibly corrupt practices at MNBC.

In January 2011, the Finance Ministry arranged a MVR47.8 million (US$3 million) loan from the State Bank of India to settle unpaid bills and develop an uplink system.

However, the uplink system project was halted after imported equipment was not paid for, auditors found. Of the US$3 million loan provided to MNBC, only US$127,000 was spent on the project for an advance payment and bank charges.

After paying an upfront fee, management fee, and interest payments, the report noted that the rest of the loan was used to pay salaries for MNBC staff and cover other recurrent expenditure.

As 85 percent of the loan was used for recurrent expenditures, the audit concluded that the purpose for which the loan was obtained was not served.

Moreover, as a result of MNBC’s failure to repay the loan in monthly installments at the end of the grace period in February 2012, the report noted that the State Bank of India liquidated the deposit kept at the bank by the Finance Ministry.

In another case, auditors found that MNBC provided MVR1.5 million to an individual in September 2011 to exchange for US$100,000.

While the individual was not licensed to exchange foreign currency, the state broadcaster has not received either the dollars or the rufiyaa as of the report’s publication.

As MNBC asked police to investigate the matter five months after the dollars were due, the audit office concluded that the corporation’s senior officials and board members were negligent and responsible for the loss.

The auditor general recommended an ACC investigation of the case and action against responsible officials.

In a third case highlighted in the report, auditors discovered that MNBC was owed MVR10 million (US$648,508) as of March 2012 for sales as well as services rendered.

As MNBC has since been dissolved, the report noted that no efforts were underway to recover the money owed.

Lastly, auditors found that the Finance Ministry provided MVR10 million to MNBC ahead of the 17th SAARC summit held in Addu City in November 2011 after the state broadcaster informed the ministry that it lacked funds in the budget to cover the summit.

In order to arrange the funds, the report revealed that the Finance Ministry decided to take MVR15 million (US$972,762) as dividends from the state-owned Kooddoo Fisheries Maldives Ltd.

A MVR10 million cheque sent to the ministry by Kooddoo was given to MNBC without depositing the funds in the public bank account as required by the Public Finance Act, the report revealed.

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Corruption charges sought against former province minister for unauthorised sports expenses

The Anti-Corruption Commission (ACC) has asked the Prosecutor General’s (PG) Office to press corruption charges against former state minister for the Upper South Province, Umar Jamal, as well as his two deputies for authorising expenses in violation of public finance regulations.

Jamal and his deputies – Mohamed Shareef of Gongali, Gaaf Alif Villigili, and Mohamed Shareef of Fusthulhaage, Gaaf Dhaal Thinadhoo – are accused of abuse of authority to unduly benefit a third party by releasing MVR118,522 (US$7,686) from the province office budget in 2009 and 2010 as financial assistance for sports tournaments and friendly matches.

The ACC investigation was prompted by a complaint alleging that MVR9,000 (US$584) was spent out of the Gaaf Dhaal atoll office budget in April 2010 for a football team from Gaaf Dhaal Gahdhoo to travel to a match.

Moreover, one of the deputies was accused of hiring a boat from Thinadhoo for more than MVR15,000 (US$973) in March 2010 to go to Villigili for a football match.

The commission found that MVR30,764 (US$1,995) in 2009 and MVR87,758 (US$5,691) in 2010 was spent to purchase sports equipment and cover transportation costs for teams to travel between islands for matches.

The expenditure was made out of budget items earmarked for fuel expenses, domestic travel, financial assistance for efforts beneficial to the community, cash prizes from the government, and overtime pay, the ACC found.

The ACC also discovered that MVR780,866 (US$50,640) in excess of the allocated amount was spent in 2009 out of the five budget codes.

The commission noted that public finance regulations prohibit expenses out of the office budget for sports tournaments – even if a state institution was fielding an office team – as well as the purchase of sports items in the absence of a budget item for sports.

“And authorisation should not be given for expenditures that are not specified in the budget,” the press release stated.

Province offices headed by state ministers for home affairs were created under the administration of former President Mohamed Nasheed as part of the ousted Maldivian Democratic Party government’s short-lived policy of dividing the country into seven administrative provinces.

The Upper South Province comprised of Gaaf Alif and Gaaf Dhaal atolls.

The province model was however scrapped from the government-sponsored decentralisation legislation by the then-opposition majority parliament, which passed the bill with the traditional 21 administrative atolls.

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