Finance Minister Moosa Zameer has revealed the discovery of significant financial discrepancies in the government’s handling of public expenditure over the past few years, including unbudgeted expenses and unlawful financial practices. The minister addressed these issues during a press conference at the President’s Office, announcing that the Ministry of Finance has suspended the publication of its Weekly Fiscal Development report to ensure that only accurate and lawful data is made public.
Minister Zameer disclosed that one of the key issues is the accumulation of unpaid bills from 2022 and 2023, amounting to USD 162 million, which have not been recorded in previous fiscal reports. He indicated that the Ministry has referred these cases to the Auditor General’s Office (AGO) for further investigation and has asked for a thorough review to identify any additional outstanding amounts.
Moreover, the minister highlighted that USD 194 million from this year’s cash flow had been spent on expenditures included in last year’s budget, a move that violates proper budgetary procedures. These unbudgeted expenditures, combined with last year’s unpaid bills, have significantly strained the government’s current financial situation.
Attorney General Ahmed Usham, who also spoke at the press conference, confirmed that these practices were illegal. He noted that, by law, all government spending should align with the annual budget, and no funds should be spent in excess of the approved allocations. The AGO has been tasked with preparing a report on the matter within the next two to three weeks, and Attorney General Usham assured that legal action would be taken against those responsible for these violations.
“Article 90 of the law clearly states that expenditure shall be in accordance with the budget of the year and no expenditure shall be made in excess of the budget,” Usham emphasized. He added that the current financial challenges stem from years of non-compliance with these regulations.
The Attorney General also addressed the use of a supplementary budget, explaining that it should have been submitted to the Parliament’s Budget Committee before any additional funds were spent. However, this process was not followed for the past three years, leading to the current financial difficulties.
“We will make necessary amendments to the law to prevent this from happening again in the future,” Usham stated, affirming the government’s commitment to addressing the identified financial irregularities and ensuring greater fiscal discipline moving forward.
The government is now waiting on the AGO’s report, after which further steps will be taken to rectify the situation, including possible legal action against those involved in unlawful spending practices.
