Audit uncovers MVR 44 million corruption in WAMCO vehicle procurement

Jan 30, 2024, 7:10 AM
WAMCO truck unloading garbage on to a barge. -- Photo: Adhadhu

WAMCO truck unloading garbage on to a barge. -- Photo: Adhadhu

The Waste Management Corporation (WAMCO) spent millions without bidding processes in 2016 and 2017 to buy vehicles for garbage disposal services, according to a special audit report of the company.

The special audit related to WAMCO's procurement prepared by the Auditor General's Office and published yesterday flagged several cases of suspected corruption from 2016 to 2017.

WAMCO bought vehicles worth MVR 43.9 million without competitive bidding processes, including a decision to buy trucks of a specific brand in order to contract a chosen supplier as well as suspected corrupt practices in the purchase of 10 dumper trucks to carry garbage in 2016.

Despite WAMCO informing auditors that some of the trucks had only been available from one party, the report noted that vehicles should be purchased based on specifications instead of a specific brand, which would have allowed awarding the contract to the bidder that proposed the best price.

The company contracted by WAMCO to procure trucks of a certain brand supplied vehicles that had been modified to fraudulently hide the brand and manufacturing country, the report stated.

In the case of the 10 dumper trucks, WAMCO agreed on a price of MVR 6.8 million but paid an extra MVR 407,642 to the supplier. WAMCO claimed the additional amount had been paid as the goods and services tax (GST) but the supplier did not pay it to the Maldives Inland Revenue Authority (MIRA), the report said.

Among other cases flagged in the audit report was the purchase of three barges by WAMCO in 2016 for MVR 35.32 million. The agreement stated that the vessels should be fitted with Yamaha engines but they were delivered with engines of the Cummins brand without any changes to the agreement, the report noted.

The supplier proposed a discount of USD 10,000 for changing the engine brand but the agreement had not been amended and the payment was made without deducting the discount, the audit found.

Since the Cummins brand engine was cheaper than the Yamaha brand, the audit office instructed WAMCO to seek an investigation by the Anti-Corruption Commission (ACC) into the suspected attempt to unduly benefit the contractor by agreeing to install Cummins brand engines without changing the price of the contract.

The audit also flagged cases involving the monthly renewal of leases for two barges for 20 months without reviewing the rental price and the disbursement of funds to various parties in violation of a board decision against providing sponsorship funds without sound procedures.

On four occasions, WAMCO provided MVR 850,000 as sponsorship funds to three associations after the managing director signed and sent a memo to the finance section.

Additionally, WAMCO spent MVR 1.6 million through purchase orders on work contracted to five parties without any agreements in 2016. But the purchase order forms did not include important provisions such as the quality of work or action for failure to complete the work on time, the audit report noted.

Comments

Read More

Latest News

Priority should be sale of assets to generate immediate liquidity

Former President Mohamed Nasheed urged the Maldives to prioritize selling assets for immediate liquidity rather than long-term projects like the $20 billion Rasmalé development. He argued the UAE-backed waterfront deal will not provide the urgent cash flow needed to resolve the nation's current financial crisis.

Police seek charges against six men for assaulting officers

Maldives Police are seeking charges against six men for assaulting officers during a drug search in Maafushi. Five suspects remain in custody, while one was released by the court. Authorities have also appealed the release of a seventh individual involved in the August incident.

No tax concessions for UAE developer in Rasmale' project

The Maldives government awarded the $20 billion Rasmalé project to UAE developer Eagle Hills without tax concessions or exemptions. All business activities will follow national tax laws, with payments processed through local banks. The state expects over $11 billion in revenue from sales fees and commercial revenue sharing.

No details on size and value of land given to Dubai company

The Maldives government signed a $20 billion deal with Dubai’s Eagle Hills to develop a massive integrated zone in Rasmalé. While the project promises 54,000 jobs and housing, officials have withheld specific details regarding the land size, valuation, and lease terms. The area is expected to operate as a special economic township.

Rasmale' investor to build 5,000 housing units in Hulhumale'

The Maldivian government has partnered with UAE-based Eagle Hills to build 5,000 housing units in Hulhumalé using a contractor financing model. This agreement follows a massive $20 billion deal for the firm to develop Rasmalé. The project will feature luxury residences and a world-class marina without impacting existing housing plans.

AMFA concludes first Junior Lifeguard Program

The Australia Maldives Friendship Association successfully completed its first Junior Lifeguard Program pilot in Thulusdhoo and Fuvahmulah. The initiative trained youth in water safety and rescue skills to enhance maritime security. AMFA plans to expand the program across the Maldives by 2027 through partnerships with local councils.

Project to build international bowling arena in Hulhumale'

A private company has been awarded a MVR 20 million project to build the Maldives' first international-standard bowling arena in Hulhumale'. The two-story facility aims to host global competitions, though the direct award process lacks an official statement. This project is part of a broader plan to develop world-class sports infrastructure.

Newsletter

Get the latest news delivered straight to your inbox