Sports Ministry Audit from 2018 – 2023 Reveals Mismanagement, Possible Corruption

An audit report released by the Auditor General’s Office has revealed significant mismanagement, lack of transparency, and potential corruption in projects overseen by the Ministry of Youth, Sports, and Community Empowerment from 2018 to 2023.

The audit highlights the ministry’s failure to maintain a comprehensive and centralised database of project information, as required under Section 12.01 of the Public Finance Rules (20R2017). Despite undertaking numerous infrastructure projects, particularly the construction of futsal and football fields, critical documents were either missing or never maintained. As a result, auditors were unable to verify essential details such as project commencement dates, completion dates, and progress status.

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Disorganised Project Management

According to the report, many projects were fragmented unnecessarily, with different sections subcontracted to multiple contractors. For example, the construction of football fields was split into separate agreements for sub-base preparation, turf installation, fencing, and accessory setup. This disjointed approach created operational delays, as the successful completion of one phase depended on the completion of another.

Furthermore, project expenditures were often recorded under incorrect codes, complicating financial tracking. Most projects exceeded their original budgets through variation adjustments, raising further concerns over fiscal discipline.

Football Association of Maldives (FAM) Project Under Scrutiny

The audit sheds light on a particularly contentious project — the MVR 38 million Football School project, which was handed over to the Football Association of Maldives (FAM). Auditors questioned the rationale behind awarding such a large-scale project to an association, FAM is already under investigation by FIFA.

The audit uncovered serious procedural lapses in the project’s financial management. Three payment vouchers totalling MVR 10 million were approved without clarity on who authorised them. Additionally, the report noted that MVR 20 million had been paid to the contractors without securing the required signatures from FAM, and bills were settled without verification of completed work. Six separate disbursements totalling MVR 17 million were made despite the unclear progress of construction.

Although the project was scheduled for completion within 90 days from July 4, 2018, over 84% of the allocated budget — roughly MVR 32.2 million — had been spent without completing the work. FAM attributed the delay to a large pile of rocks at the project site under the jurisdiction of the Housing Development Corporation (HDC), but the audit expressed concern that no penalties were outlined in the contract for delays, nor were any damages recovered.

Accusations of Corruption and Calls for Investigation

The audit also documented several instances of corruption involving sports associations, farming initiatives, and operational expenditures. It stressed that even when projects are executed by associations with external donations, the ministry is still bound by the national Public Finance Act. The report recommended that the Anti-Corruption Commission (ACC) be consulted for further investigation, particularly in relation to the Football School project.

The findings have ignited calls for greater oversight, accountability, and transparency within the ministry and associated bodies.