WAMCO Reports Payment Irregularities Over Undelivered Vehicles

The Waste Management Corporation (WAMCO) has filed a complaint with the relevant authorities regarding advance payments amounting to MVR 6.3 million for dump trucks and a landing craft that were not delivered within the agreed timeframe.

According to WAMCO, the company signed an agreement in 2021 with a local supplier to procure 10 two-ton dump trucks and a landing craft. An advance payment of MVR 6.3 million was made on 29 December 2021, with delivery expected within four months. However, as of 30 October 2022, the landing craft had still not been delivered, and it remains unclear whether the vehicles have since been received.

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WAMCO noted that the contract did not include provisions for compensation for losses incurred due to the delay. The company stated that the supplier had not refunded the advance payment of MVR 1.7 million or the additional MVR 4.6 million paid for the purchase.

The company also identified weaknesses in its internal financial management. It revealed that transactions with third-party outlets were not properly recorded, with outstanding balances maintained manually in spreadsheets rather than through an official financial management system.

An audit of 231 random transactions between 1 January 2021 and 31 December 2022 found that MVR 6 million had been paid without proof of receipt of goods or services. WAMCO further observed that expenditures outside the approved budget had occurred in 2018 and 2019, including 178 working advance transactions totalling MVR 1.7 million issued for purposes not covered by the company’s finance policy.

WAMCO stated that it will continue to disclose information transparently and confirmed that the matter has been referred to the Anti-Corruption Commission (ACC), the Auditor General’s Office, and the police. The company added that efforts are underway to ensure those responsible are held accountable.