The Auditor General has revealed that the Maafushi Council allegedly attempted to mislead audits. The Auditor General made the statement in its 2021 audit on Maafushi Council's financial statements, and its 2020 compliance audit report.
The report included the Auditor General's views on the accuracy of the council's 2021 financial statements and details of expenditures made from the council's 2020 budget in violation of public finance regulations.
A major issue noted in the report involved the council's improper handling of funds related to ID card transactions, and their attempts to cover up the misdeeds. According to the report, Maafushi Council provided false information to the auditors regarding income from ID card transactions, and also failed to maintain proper records as required by financial regulations.
The Auditor General said despite their attempts to seek accurate details about the ID card revenue throughout the audit process, the council provided various versions of false information over multiple occasions. Despite claims from the council that no such funds were accepted or held, auditors discovered MVR 69,700 along with ID cards in a council employee’s desk drawer. This breached the rules on secure money handling, and the report noted that MVR 13,250 was missing from the ID card funds. The report also found that the council did not issue receipts for ID card payments and did not secure the money in a proper safe.
The Auditor General recommended that the council provide honest and accurate information in future audits and called on the Finance Ministry to take necessary action regarding the findings.
