Gov’t to Investigate Unaccounted MVR 2 Billion in State Budget

The government has revealed that over MVR 2 billion has been spent from the State budget without being properly accounted for in the Finance Ministry’s system. 

Authorities are now working to identify those responsible for this oversight, with potential actions to be taken against them. The Ministry of Finance has faced public criticism for failing to publish its Weekly Fiscal Report since June, a move linked to these budgetary discrepancies.

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At a press conference held at the President’s Office, Minister of Finance Moosa Zameer acknowledged that by mid-year, discrepancies in expenses had been identified. Former Finance Minister Shafeeq had ceased publication of the reports at the time to investigate the issue further. According to Zameer, approximately MVR 1.5 billion, along with nearly MVR 2 billion granted by international financial institutions for foreign-aid projects, had been incorrectly recorded in this year’s accounts.

As a result, bills amounting to MVR 2.5 billion from the previous two years needed to be absorbed into this year’s budget. Zameer also noted that similar bills might exist in other ministries, with an investigation underway in collaboration with the Auditor General’s Office.

The Minister added that around MVR 3 billion allocated in the 2023 budget but not disbursed has been processed through this year’s cashflow. A formal request has been submitted to the Auditor General to advise on how to address these issues, with the government awaiting further guidance from both the Auditor General and the Attorney General.

Attorney General Ahmed Usham, speaking at the same press conference, stated that if MVR 2 billion was spent last year but remains unrecorded, including it in this year’s accounts would contravene the law. Usham highlighted that all expenditures must align with the specific year’s budget as passed by parliament, and any actions outside of this framework are unconstitutional.

He stressed that exceeding the budget and seeking supplementary allocations after the fact is illegal, noting that this practice has been ongoing since 2020. Usham confirmed that the government is now reviewing the matter and plans to take necessary action against those responsible for violating the Public Finance Act and the Constitution.

Usham further indicated that legal amendments would be introduced to prevent similar occurrences in the future.

Minister Zameer concluded by stating that the Weekly Fiscal Report will resume publication once the Auditor General provides the necessary guidance.