Auditor General’s Office Says Mandhu College’s MVR 498 Million Claim Not Justified

The Auditor General’s Office has stated that it does not consider the additional MVR 498 million claimed as indirect damages following the termination of an agreement related to Mandhu College.

The position was outlined in an assessment report on compensation claims arising from the cancellation of an agreement to operate an international school in the building previously used by MES.

According to the audit report, Mandhu College incurred direct damages amounting to MVR 15 million up to March 2021. These costs were associated with rent payments and the procurement of equipment required for the college to continue operating after the termination of the MES building agreement. The report also noted that a total of MVR 19.7 million had been released to Mandhu College for various matters linked to the agreement concerning the building.

Assessment Report on Damages Claimed by Male’ High Private Limitedhttps://t.co/BuNN0yuqtL pic.twitter.com/P4nnpmxHAZ— AGO (@AuditMV) March 10, 2026

Mandhu College has requested MVR 627.7 million in compensation. Of that amount, MVR 498.8 million represents indirect damages. The claim includes estimated profits from operating Mandhu College, projected earnings from running night classes at Male’ High Pvt Ltd if the building agreement had continued, and anticipated future profits from operating an international school.

However, the Auditor General’s Office said the estimated profits were not calculated in accordance with guidelines issued by the Supreme Court for determining future cash flows if an agreement had remained in force. The report stated that awarding damages based on those calculations would result in inadequate financial compensation.

Last month, the Civil Court ordered the Auditor General’s Office to hand over the audit report after Male’ High, which operates Mandhu College, filed a case requesting access to the document.

The building was allocated to Mandhu College during the administration of former President Mohamed Nasheed. In 2015, the government led by the Progressive Party of Maldives (PPM) seized the building, stating that the terms of the agreement had been breached because an international school had not been established as required.

Both the High Court and the Supreme Court later ruled that the agreement had been wrongfully annulled. 

Following a letter from the Ministry of Education dated 23 August 2020, the Auditor General’s Office conducted an assessment to determine the amount of compensation owed.

Male’ High has argued that it was not officially informed that such an assessment had been conducted or that a report had been prepared. The company said the Auditor General can only properly assess damages to its assets and business after consulting the company and reviewing its records.

The company further contended that the report was prepared without considering its documents or conducting consultations, and therefore lacks validity and weight. It also claimed the assessment is contrary to international auditing standards.