Audit: Documents on MVR 120mn in Housing Ministry spending lost in 2024 blaze

Key documents on over MVR 120 million in spending by the Housing Ministry was lost in the large blaze in 2024 that burned down a block of government buildings in Male’ City, leaving auditor’s unable to ascertain the funds were spent in compliance with public finance regulations.

The fire broke out at a block of government buildings located in the Ameenee Magu of Male’ City at around 06:00 am on December 12, 2024. The buildings housed the Housing Ministry, Infrastructure Ministry, Environment Ministry, the Environmental Protection Agency (EPA) and three sections of the Male’ City Council – including the Vital Registration Department.

It marked the worst fire at a government building in the country’s history.

According to the 2018-2023 compliance audit on the Housing Ministry by the Auditor General’s Office, auditors were unable to access documents on key financial transactions due to the damage to the ministry’s servers in the 2024 fire.

The report, publicized on Tuesday, notes that under public finance regulations, state institutions are required to use the latest technology in the electronic storage of official documents, and to have backup files stored at two different locations.

However, the AGO noted that the 2024 fire resulted in the complete destruction of the Housing Ministry’s server, leaving no possibility for the recovery of the financial records stored in it.

It also found the Housing Ministry failed to have backup copies of the financial records stored as required.

The AGO said this resulted in loss of documents related to two key transactions made in 2023, totaling MVR 120,797,027.

One was bid proposals, bid evaluation sheets, bid committee decisions and other documents related to MVR 6,591,878 spent by the Housing Ministry and the Department of National Registration (DNR).

The other was documents related to MVR 114,205,149 spent by the Housing Ministry on salaries.

“As a result, auditors were unable to ascertain whether these spendings were conducted in compliance with the public finance regulations,” reads the report.

The AGO advised the Housing Ministry to store its financial records in an organized and systematic manner as required by public finance regulations, to make it easier for its own administrative use as well as that of auditors, and to store backup files of records that are stored electronically in two separate locations.