Parliament Passes Report on MPL Diesel Purchasing Scandal, Orders Stronger Oversight

Parliament has ordered Maldives Ports Limited (MPL) and Fuel Supply Maldives (FSM) to fully implement recommendations from an audit report into the diesel purchasing scandal, taking stronger measures to prevent a repeat of the large-scale corruption uncovered between 2018 and 2020.

The Special Audit Report on Diesel Purchase Transactions for the Operations of Maldives Ports Limited, conducted by the Public Accounts Committee, was passed with 69 votes in favour during Monday’s sitting.

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Key measures endorsed in the report include the installation of cameras on ships to monitor oil tankers and the replacement of existing fuel release meters with modern digital meters capable of real-time reporting. FSM, the state-owned fuel company, has been instructed to provide detailed compliance updates to the committee within 45 days.

The report also calls on the Prosecutor General’s Office and the courts to expedite recovery of damages caused by the loss of diesel purchased for the Malé Commercial Harbour, with the results to be submitted to the Public Accounts Committee within three months of the report’s approval.

The audit revealed extensive corruption and negligence, resulting in the theft of diesel valued at MVR 28.3 million. The Audit Office found that MPL and FSM employees were directly implicated in the disappearance of millions of litres of fuel.

An audit report released in 2022 showed that diesel and tugboat operations worth MVR 9.6 million and MVR 18.5 million respectively were recorded as operational use but were in fact stolen. Oil worth MVR 127,616 allocated for the RTG cranes was also missing.

The missing fuel included 799,900 litres valued at MVR 7.2 million, reportedly supplied by FSM bowsers to the Hulhumalé jetty area for tugboats. However, tugboat captains confirmed that their vessels had not been refuelled there, and FSM delivery records showed fuel was issued when the boats were not in operation.

From 2018 until November 2020, certain MPL units were found to have created duplicate forms and forged signatures on fuel request documents. Dates were altered, and counterfeit forms for fuel valued at MVR 13.42 million were submitted in advance to facilitate the scam.

According to information provided to Parliament by the Prosecutor General’s Office and the courts, three individuals are currently facing charges, with MVR 6.7 million being sought in compensation.

During the sitting, Deputy Speaker Ahmed Nazim criticised FSM for inadequate action, noting that the main culprit was only demoted, while the bowser driver — a Bangladeshi national — was charged. He stressed that managing directors and managers should bear responsibility in such cases, but accountability had not been taken.

Parliament also approved a recommendation for the Auditor General to conduct a further audit into FSM’s fuel buying and selling operations, reviewing its risk management, internal audit, and compliance systems.

Additionally, the report advises the installation of automatic identification systems on oil tankers to monitor movements beyond the Malé area or a specified distance, to ensure offshore and salvage operations are authorised by MPL. This must be completed within three months of the report’s passage.

Opposition MPs called for full investigations and prosecution of all those involved, accusing the government of rewarding individuals implicated in the scandal with jobs and promotions. They insisted that justice should be applied equally and without political bias.

Ruling party MPs emphasised that the findings related to events during the 2018–2020 period, when the Maldivian Democratic Party (MDP) was in power, and argued that the report highlighted significant corruption under the previous administration.