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Audit on MPL discovers USD1.8 million in diesel fuel went missing

An audit report published by the Auditor General’s Office (AGO) shows that USD1.8 million worth of diesel had gone missing while procuring fuel for the operations of the Maldives Ports Limited (MPL).

In the audit report, the AGO highlighted that the diesel went missing during the transactions conducted between MPL and Fuel Supply Maldives (FSM) Private Limited between 2018 and 2020. It detailed that USD621,000 in diesel had been procured for generators, USD1.2 million in diesel was procured for tugboat operations, and USD8,260 in diesel was procured for the rubber-tired gantry cranes during the period.

The AGO stated the delivery notes of FSM show its bowsers had supplied 799,900 litres of diesel to MPL tugboats at the Hulhumale’ Jetty which was worth USD466,000, but the captains of the tugboat reported that the bowsers had not travelled to the area to supply the vessels with fuel. The report also shows incidents of employees forging documents at the MPL procurement store between 2018 and 2020 to make requests for diesel for various company units that amounted to 1.4 million litres worth USD869,000.

Additionally, the AGO noted MPL procured 59% more diesel in 2020 than in 2021, despite the reduced operational work at the Male’ Commercial Harbour due to the low number of imported goods in 2020 due to the COVID-19 pandemic.

Chief Executive Officer (CEO) of MPL Shahid Ali has said the relevant authorities are investigating and taking action against those involved in the cases of corruption within the company. He assured measures have been taken to prevent such incidents, including securing the purchase order issuance procedures. He also said another audit by the auditor general is ongoing and is expected to be completed soon.

A total of four employees of MPL were suspended over the fraudulent procurement of fuel in 2020.