Millions Lost in Mismanaged Stadium Projects Under Previous Maldives Government

A comprehensive audit by the Auditor General’s Office has revealed deep-rooted corruption, procurement violations, and systemic mismanagement within the Ministry of Sports during the administration of former President Ibrahim Mohamed Solih. The findings center around sports infrastructure projects, primarily stadium constructions carried out between 2018 and 2023.

Projects Fragmented to Evade Oversight

The audit uncovered a deliberate pattern of contract splitting—where large-scale projects were broken down into smaller components and awarded to different contractors. This tactic, the report suggests, was designed to bypass public tender procedures and avoid oversight from the government's tender board.

Out of 129 projects examined, 23 were identified as having been segmented unnecessarily. Alarmingly, 18 of these projects exceeded MVR 5 million—the legal threshold that mandates review by the tender board. Yet, the Ministry of Sports awarded these contracts directly, sidestepping procurement regulations.

Components of Stadium Construction Separated

The audit highlighted several areas where project components were contracted separately instead of being grouped under a single, more efficient agreement. These included:

  • Preparing the sub-base for playing fields

  • Supplying artificial turf

  • Laying the turf

  • Constructing rostrums (spectator stands)

  • Building boundary walls and installing fencing

This disjointed approach not only led to inflated costs but also undermined the benefits of competitive bidding, significantly increasing the government’s expenditure.

“This will lead to expensive works and increase the expenditure incurred by the state,” the report stated.

Project Delays Due to Poor Coordination

Besides financial inefficiency, the lack of coordination among contractors caused significant delays. In several instances, projects were put on hold because subsequent stages of construction relied on the completion of earlier ones—tasks that were the responsibility of separate contractors.

“There have been situations where one work cannot be started until another is completed, and the rest of the project has not been started for a long time due to one contractor,” the audit noted.

Unlawful Advance Payments and Excessive Prepayments

The audit further revealed substantial irregularities in the advance payment process, with contractors receiving funds far exceeding the legally permitted limits.

According to Maldivian financial regulations, only up to 15 percent of the total contract value can be paid in advance, and only if requested within 45 days of contract signing. However, in several cases, companies received up to 55 percent in advance, often without delivering any materials.

A detailed breakdown of these unauthorized payments includes:

  • 15% issued before any work commenced

  • 30% released after submission of shipping documents

  • 10% paid upon receipt of goods

In total, the report identified more than MVR 55 million paid out in advances before the Ministry had received any goods or services—raising serious concerns about internal controls and accountability.

A Call for Reform and Transparency

This audit sheds light on the urgent need for reforms in government procurement practices, especially for infrastructure projects funded by public money. Experts argue that stronger internal auditing systems and greater transparency are essential to prevent misuse of state funds in the future.

With the Maldives seeking to improve public trust and attract international investment, ensuring that large-scale development projects are implemented with integrity and accountability will be critical. As the public awaits a response from the current administration, the findings from the Auditor General's Office could serve as a catalyst for long-overdue reforms in government operations and financial governance.