News Desk
An audit report released by the Auditor General’s Office has revealed that the state disbursed more than MVR 2.9 million under former President Ibrahim Mohamed Solih’s administration to demolish a building at Maafushi Prison that did not actually exist.
The transaction was carried out under the supervision of former Home Minister Imran Abdulla as part of a wider prison expansion project.
According to the audit findings, a MVR 45 million project to build a high-security wing—comprising a 50-cell unit, an 18-cell unit, and a security post—was awarded directly to the Police Cooperative Society (POLCO) without competitive bidding, under the pretext of expediting the work. POLCO then subcontracted the project to a private firm, V Hour Investment, also bypassing competitive bidding processes.
The audit report highlights that the Bill of Quantities (BOQ) allocated MVR 2,920,082 for clearing and demolishing an existing structure at the 50-cell site, with funds successfully released to POLCO. However, satellite photographs captured on January 20, 2022—prior to the official handover of the project to POLCO—confirm that no such building stood on the land.
Beyond paying for unperformed demolition work, auditors uncovered major price discrepancies between the project’s technical drawings and the BOQ. The unit price for lean concrete was set at MVR 8,500 per cubic meter for the 18-cell section, but jumped to MVR 14,000 per cubic meter for the 50-cell section, resulting in an unjustified additional cost of MVR 238,804 to the state.
Further cost inflation was found in the foundation and excavation works, with column concrete and footing foundation dimensions arbitrarily increased to inflate foundation costs by MVR 97,258 and excavation costs by MVR 46,947.
The report notes that these actions directly violate section 10.28(h) of the State Public Finance Regulation, which mandates the preparation of complete documentation, technical drawings, and accurate estimates prior to proceeding with procurements.
