The education ministry violated public finance rules by illegally spending nearly MVR900,000 (US$58,365) and failing to collect MVR8 million owed as loan repayments, according to the ministry’s audit report for 2015.
Auditors found that MVR894,414 was spent as payment for services and items purchased for schools without a public announcement as required by the public finance regulations before awarding projects worth more than MVR25,000.
Of MVR13 million worth of study loans issued from 1987 to 2010, the audit found MVR8 million has not been paid by deadlines stipulated in the loan agreements.
According to the audit report, MVR5 million was loaned to institutions such as schools and colleges and MVR8 million was provided as higher education loans for individuals and teachers.
The auditor general advised the ministry to take action and initiate court proceedings against 131 individuals and institutions to retrieve the money.
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