The audit conducted on Ministry of Education for the year 2017 has revealed irregularities in contracting some of its projects.
As per the report published by the Auditor General’s Office, the Education Ministry had failed to act in accordance to the Public Finance Regulations in contracting some projects in 2017. As such, the report stated the irregularities led to the state incurring losses through the projects.
According to the report, upon the orders of the Ministry of Finance, the Education Ministry had terminated a contract signed with Swift Engineering Private Limited in 2016 to construct some classrooms in Kolhufushi School in Meemu Atoll. The report stated the Alternative Dispute Resolution (ADR) Committee had proposed to award five other projects to Swift Engineering as compensation for the damage incurred by the company upon termination of the contract. However, the report stated the scope of the project was changed by the ministry without the counsel of the ADR Committee, and the project was carried out at a large cost.
Furthermore, the report also revealed the project cost variation for the demolition of Dharumavantha School’s old building had been approved and disbursed by the ministry, despite the variation being higher than 10% of the project cost. The report further stated the ministry had issued payment for bills without confirming the arrival of ordered supplies and the completion of work.
The audit report also stated the Education Ministry did not include details of outstanding bills in its annual financial report for 2017. It also noted failure to keep records of all property under the ministry’s name, as specified in the Public Finance Regulations.
The Auditor General’s Office has advised the ministry to submit the issues identified in the report to the Finance Committee to take action. It also called on the ministry to strictly adhere to the Public Finance Regulations in contracting projects.