Filladhoo Council Says Audit Report is Subjective and Misleading

The Haa Alif Atoll Filladhoo Council has claimed that the 2024 Compliance Audit Report issued by the Auditor General’s Office (AGO) is misleading and based on subjective, personal views of the auditors.

In a statement issued on 21 November, the council outlined several concerns regarding the AGO’s assessment, particularly the section evaluating how the council allocated land on the island for tourism development.

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The AGO report, released on the previous day, stated that the island’s existing power capacity was insufficient to support the number of proposed tourist facilities. It noted that, under the council’s land-leasing policy, practical work on leased plots must begin within six months of signing the agreement, and operations must commence within two years. However, the audit found that the areas allocated for tourism development lacked adequate electricity infrastructure.

In response, the council said it had already requested Fenaka Corporation to expand the island’s power capacity to meet the requirements of future developments and assured that the corporation would be able to provide electricity to the designated area.

The audit also highlighted shortcomings in the council’s land-leasing policy, stating that it lacked clear criteria or a robust points system to assess applicants’ financial capability. The report said this increased the likelihood of land being awarded to individuals who could not afford the investment, turning the process into “a business of selling land.” According to the audit, 19 plots were sold in this manner, generating more than MVR 2.4 million in profits for the original leaseholders through transfers to third parties.

Additionally, the audit raised concerns about the evaluation process used to assess proposals for tourism plots. It noted that land in various locations had been allocated at rates set 25 percent higher than the previous year for the past decade, a practice that the AGO estimated had resulted in a loss of MVR 55 million to the council.

The council responded by stating that it had evaluated 600 bids for 99 tourism plots and that only two proposals included rent increases from the previous year. It added that no complaints were filed by any of the bidders.

The Filladhoo Council said it will address the issues highlighted in the audit and pursue compensation where applicable under the law. It further mentioned that the audit report done by the council in 2023 has still not been disclosed.