MVR 2.9 million to demolish non-existent building during Imran's term as Minister: Audit

An audit report has revealed that during former President Ibrahim Mohamed Solih's administration, MVR 2.9 million was disbursed under the oversight of then Home Minister Imran Abdulla for the supposed demolition of a non-existent building under a project to construct a high-security wing at K. Maafushi Prison.

According to the audit report released by the Auditor General's Office, the project to build a 50-cell high-security wing, an 18-cell unit, and a security post at Maafushi Prison was awarded without a bidding process to Police Cooperative Society (POLCO) for MVR 45 million, under the pretext of expediting the work.

However, POLCO subsequently sub-contracted the project to a private company named "We Hour Investment," also without any bidding process.

One of the major issues highlighted in the audit report is the inclusion of MVR 2,920,082 in the Bill of Quantities (BOQ) for the demolition and clearing of a building allegedly located in the area designated for the 50-cell unit, with the Ministry releasing these funds to POLCO.

However, satellite imagery captured via Google Earth prior to awarding the project to POLCO (on January 20, 2022) indicates that no building existed in that area.

Consequently, the audit determined that state funds were disbursed for work that was never performed to demolish a non-existent structure.

Additionally, the audit discovered significant discrepancies between the project drawings and the prices and dimensions listed in the BOQ, in violation of the State Public Finance Regulations. Key discrepancies noted include:

• Lean Concrete Pouring: While lean concrete was priced at MVR 8,500 per cubic meter for the 18-cell unit, it was quoted at MVR 14,000 per cubic meter for the 50-cell unit, resulting in an inflated cost of MVR 238,804.

• Column Concrete (200x200): Priced at MVR 13,000 per cubic meter for the 18-cell unit compared to MVR 20,904 per cubic meter for the 50-cell unit—an excessively high rate considering only minor differences in rebar sizing.

• Foundation and Excavation Costs: The dimensions of column footing foundations were overstated in the BOQ relative to the project drawings, adding MVR 97,258, which further inflated excavation costs by MVR 46,947.

Section 10.28 (a) of the State Public Finance Regulations stipulates that before initiating any procurement process, all relevant details including specifications, drawings, BOQs, and estimated costs must be fully documented in writing.

Nevertheless, the audit report emphasized that this Maafushi Prison project violated public finance rules to facilitate significant undue financial gain.