Unpaid fines linked to environmental damage in the Maldives have crossed MVR 930 million, raising serious concerns about enforcement gaps and long delays in recovering state funds.
According to an audit report released by the Ministry of Environment, outstanding environmental penalties total MVR 930,328,480 as of September 16, 2024. The figure is based on the ministry’s audit of its 2022 financial statements, along with compliance audits covering the years 2019, 2020, and 2021.
As more than a year has passed since that date, auditors noted that the actual amount owed to the state is likely even higher. However, the current total remains unclear due to delays in updating records and recovering payments.
Weak Enforcement Behind Rising Unpaid Fines
The audit highlights systemic weaknesses in how environmental fines are enforced and collected. These fines are issued for damage caused to reefs, lagoons, and other natural ecosystems, often by large-scale development projects and maritime activities.
Despite regulations requiring compensation for environmental harm, the report indicates that follow-through remains inconsistent. In many cases, fines are issued but remain unpaid for extended periods without legal escalation.
Auditors warned that such delays undermine environmental protection efforts and weaken public confidence in regulatory institutions.
Audit Calls for Clear Recovery Procedures
To address the issue, the audit report made several recommendations aligned with the Public Financial Regulation. These include:
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Actively pursuing the recovery of environmental fines within the designated payment period.
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Issuing formal written reminders if payments are not made by the deadline, allowing an additional seven days to settle the amount.
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Filing legal cases to recover funds if payment is still not received after the reminder period.
The report stressed that without firm enforcement, fines lose their deterrent value and environmental damage continues with little accountability.
Parliament Steps In as Concerns Grow
The issue of unpaid environmental fines has drawn increasing attention from lawmakers. In February 2025, Parliament’s Committee on Environment and Climate Change decided to hold discussions with relevant authorities to address persistent non-payment by businesses and operators.
Earlier, in October 2024, the heads of the Environmental Regulatory Authority (ERA) and the Attorney General’s Office were summoned before the committee and questioned about repeated failures to recover fines.
ERA officials told the committee that one of the biggest challenges is the authority’s lack of legal power to independently take violators to court. As time passes without payment, recovering fines becomes increasingly difficult.
Maritime Incidents Add to the Problem
The Attorney General’s Office highlighted a recurring issue involving international maritime vessels. Over the past three years, several foreign ships have run aground on Maldivian reefs, been fined for environmental damage, and then left the country without paying the penalties.
Once these vessels depart, pursuing compensation becomes legally complex and often impractical, leaving the state to absorb the environmental and financial loss.
Other Financial Irregularities Flagged
Beyond environmental fines, the audit report also pointed to several additional shortcomings within the ministry.
A large number of Microsoft software licenses purchased in 2021 through the former government’s National Centre for Information Technology, now the National Digital Service, were left unused. Of 20,000 Microsoft 365 licenses, only about half were in use by June 2022, despite MVR 18.3 million being spent on the active licenses. More than 9,000 other software licenses, costing MVR 2.6 million, were never distributed to state institutions.
The audit further noted that the ministry failed to monitor or evaluate the effectiveness of the “Home Solar” program launched in 2021 with Fenaka Corporation. In addition, financial guidelines were not properly followed when providing waste management assistance to councils on 20 islands.
Taken together, the findings point to broader challenges in financial oversight and environmental governance. As environmental pressures mount, auditors warn that delayed enforcement and weak accountability could come at a high cost, both for the state budget and for the country’s fragile ecosystems.
