Audit alleges Centre Enterprises tried to extort state funds using forged documents

The Audit Office has accused Centre Enterprises of attempting to obtain funds from the state by submitting invalid documents for goods and materials it allegedly supplied to various government agencies and companies.

Centre Enterprises has filed multiple lawsuits seeking payment for goods it claims to have supplied to state agencies between 2006 and 2009, along with penalties for delayed payment. The Audit Office is conducting audits of these cases.

An audit report released in October last year examined a Civil Court case seeking USD 5.15 million in penalties and payments for supplies allegedly provided by Centre Enterprises to the Department of Medical Services (DMS) in 2008. The report noted that Centre Enterprises has a history of filing cases to recover payments for goods allegedly supplied to state-owned companies. It also recommended that the Attorney General’s Office submit the documents provided by Centre Enterprises to the police for verification and take action against those involved in any forgery.

On Tuesday, the Audit Office issued another report revealing the results of audits conducted on three additional cases related to Centre Enterprises.

The first case concerns three agreements signed between the Environment Ministry and Centre Enterprises in 2007 and 2008 for the supply of drinking water tanks. The company is seeking MVR 31.99 million in damages and penalties. According to the audit report, the work was awarded for MVR 27.06 million, of which MVR 26.3 million was paid. The remaining amount was withheld because the company failed to supply 336 black containers. The audit concluded that Centre Enterprises appears to be attempting to misappropriate state funds by submitting invalid documents and misrepresenting the truth, claiming that payments for completed transactions were not received.

The other two cases relate to DMS. One seeks to recover the value of black leather containers allegedly supplied to DMS, along with a penalty of MVR 25.33 million. The second seeks recovery of MVR 83.94 million for medical equipment allegedly supplied to DMS, along with an equal amount as penalty. The audit report stated that 900 black containers had been supplied to DMS and rural health centres. It also found that letters submitted by Centre Enterprises regarding medical equipment appeared to have been manufactured in the name of DMS.

In response to these findings, the Audit Office said it discovered numerous documents submitted by Centre Enterprises that are believed to be invalid. The office recommended a forensic analysis of the documents and a criminal investigation into the cases to take action against those involved.

According to the business portal, the shareholders of Centre Enterprises are Ahmed Jameez and Abdulla Arif.