Mulah Council audit finds unreconciled accounts and possible conflict of interest in land lease

The Auditor General’s Office has issued a compliance audit on the 2024 revenue and expenditure accounts of the M. Mulah Council, highlighting failures in financial recordkeeping and raising concerns over possible conflicts of interest in land‑leasing decisions.

According to the report, the council did not maintain its 2024 revenue and expenditure records in the Business Module as required under a 2019 directive issued by the Local Government Authority. The council also failed to reconcile its accounts with the Bank of Maldives.

As a result, the figures recorded in the Business Module at the end of 2024 did not match the bank statements. The audit found that the council’s bank balance showed MVR 13,461 more than what was recorded in the income module. In addition, MVR 456,653 more was spent than the expenditure recorded in the module.

The audit also flagged serious issues in the way land was leased by the council.

In 2024, the Mulah Council leased 22 plots of land. However, the audit found that the lease period for a plot used to operate a restaurant was extended by 10 years, despite the original contract still having four years remaining. The report states that the business operating the restaurant is affiliated with a sitting council member.

While the council later reviewed and increased the rent for most leased plots, two plots were not revised, including the restaurant plot linked to the council member.

The Auditor General’s Office recommended that the matter be referred to an investigative authority if a conflict of interest is established.