The Auditor General’s Office (AGO) has released a special audit report stating that the MVR 64 million compensation paid to Dheebaja Investment, following the termination of its agreement to provide transport services in the Northern Province, was unnecessary.
The audit report noted that the company’s expenses, financial statements, and other benefits received under the agreement were not taken into account in the calculation of the compensation amount. In addition, of the MVR 14.7 million allocated as capital investment, the total value of an agreement with another company to build the ferry vessels came to MVR 11.9 million, the report said.
A key finding in the report was the sale of R. Kudakurathu Resort, which was part of the subsidy given to Dheebaja under the transport agreement. The resort was sold for MVR 65.5 million, a profit that offset the losses associated with the termination of the agreement. As a result, the Auditor General concluded that no additional compensation was necessary.
The audit report called for the recovery of funds disbursed to Dheebaja and an investigation to take action against those responsible for the payment.
