Between 2019 and 2022, the government spent more than MVR 19 million on 790 students who dropped out of the Free Degree Scheme without making any effort to recover the funds, according to a performance audit released by the Auditor General’s Office.
The audit examined the state-funded undergraduate education scheme, which was introduced in February 2019 under former President Ibrahim Mohamed Solih to provide tuition-free higher education to first-time degree seekers.
According to data obtained from the Maldives Qualifications Authority (MQA) and participating higher education institutions, around 11,600 students joined the scheme between 2019 and 2022. Of these, only 5,833 students (50 per cent) completed their qualifications.
Between 2019 and 2024, total state expenditure on the scheme reached MVR 836 million, averaging MVR 139 million annually. Nearly 20,000 applications were received over the six-year period, with 16,388 applicants (85 per cent) receiving funding.
The Auditor General’s Office highlighted major administrative weaknesses, noting that government records lacked comprehensive details on graduating beneficiaries. Adequate mechanisms were not established with tertiary institutions to track whether students completed, deferred, transferred, or discontinued their courses.
The absence of a centralised verification system to check applicants’ educational backgrounds also resulted in MVR 9.37 million being improperly allocated to 271 students who had already completed an undergraduate degree, violating the programme’s primary mandate.
Additionally, auditors noted that key performance indicators (KPIs) were never instituted to measure the societal or economic impact of the public funding.
Out of the total funding, the report identified specific institution-level disbursements totaling MVR 819.58 million between 2019 and 2024.
- Villa College: MVR 177.31 million
- Maldives National University (MNU): MVR 151.82 million
- Maldives Business School: MVR 86.78 million
- Mianz International College: MVR 72.95 million
- MAPS College: MVR 63.07 million
- Avid College: MVR 52.57 million
- Zikura International College: MVR 28.77 million
- Islamic University of Maldives (IUM): MVR 18.34 million
- Other identified institutions: MVR 34.40 million
- Unidentified institutions: MVR 133.58 million
To address the identified shortcomings, the Auditor General’s Office recommended a series of reforms to strengthen the scheme’s governance and financial oversight.
The recommendations include better student monitoring, aligning the scheme with labour-market needs, and prioritising state-run institutions such as MNU and IUM.
Auditors also called for a centralised eligibility database to verify that applicants are first-time degree seekers before funding is approved.
