Audit Reveals Over MVR 930 Million in Environmental Fines Unpaid

A compliance audit of the Ministry of Environment released by the Audit Office revealed that the state has yet to receive MVR 930.3 million in environmental fines as of 16 September 2024.

The audit reviewed the ministry’s operations for 2019, 2020 and 2021 and found that fines imposed for environmental damage during this period remain unpaid. The report did not disclose details of the specific fines or identify the parties responsible for the outstanding payments.

The Audit Office noted weaknesses in the recovery of environmental penalties and recommended that the ministry strengthen its procedures to ensure outstanding amounts are collected. It advised that payments should be recovered within the stipulated timeframe and that reminder letters should be issued if payments are not made, requiring settlement within seven days.

The audit further recommended that if payment is still not received, a formal written notice should be issued granting an additional seven days. In line with Finance Regulations, cases that remain unresolved after this process must be referred to the Ministry of Finance for further action.

Environmental fines are commonly imposed in incidents involving damage to marine ecosystems, particularly when barges or landing craft run aground on reefs. Such penalties are typically issued by the Environmental Protection Agency, including in cases involving damage to house reefs in inhabited islands.