MPL fuel scam: Parliament orders measures to recover losses

Parliament’s Public Accounts Committee has directed Maldives Ports Limited (MPL) to take action over the loss of MVR 28.3 million in diesel sold to the company by Fuel Supply Maldives (FSM).

A special audit of MPL’s fuel procurement between 2018 and 2020 found that employees of both MPL and FSM were involved in the misappropriation of millions of litres of diesel. The fraud led to several dismissals, but the funds have yet to be recovered.

The committee’s report, tabled in parliament today, recommends:

- Implementing the audit’s findings

- Upgrading camera systems and fuel discharge meters to modern, digital monitoring systems within 45 days.

- Expedite loss recovery efforts and submitting a detailed update to parliament on progress made by the Prosecutor General’s Office and the courts

- Strengthening internal financial controls and commissioning a special audit of MPL

- Installing monitoring systems on oil tankers within three months

The 2022 audit report detailed losses including MVR 9.6 million in diesel recorded for generators, MVR 18.5 million for tugboats, and MVR 127,616 for RTG cranes. Among the losses were 799,900 litres worth MVR 7.2 million supplied by FSM bowsers to the Hulhumale' jetty area, even when tugboats were not operating. The audit report states that although captains say they had not refueled at that location, FSM delivery notes state otherwise.

From 2018 to November 2020, the report found, MPL units forged request forms, altered dates and signatures, and used advance fuel request forms to siphon diesel worth MVR 13.42 million.

The Auditor General’s Office has issued nine recommendations, including referring the case to the Anti-Corruption Commission and police, seeking compensation from those responsible, installing meters to track fuel usage, and maintaining detailed records of all changes to fuel orders.

Government-aligned MPs used the debate to criticize the previous MDP administration stating that multiple similar corruption scandals had occurred during their term.

A vote on the report is expected later today.