An audit report has revealed that unpaid fines to the state regarding damages to the environment are now higher than MVR 930 million.
These figures come from the Environment Ministry's audit of their 2022 financial statements and the 2019, 2020 and 2021 compliance audit reports.
As per the report, in determining fines over damages to the environment and the issues regarding the fines made under regulations in acquiring compensation, the state is to receive a total of MVR 930,328,480 until 16th September 2024.
As it has been more than a year since then, it is unclear as to what the total environmental fines are.
Recommendations for amendments
- The audit report recommended the ministry to take steps in retrieving the funds for the state, as per the Public Financial Regulation.
- Work to retrieve the funds within the given payment timeframe.
- If the payment has not been made by the deadline, a reminder is to be given to make the payment within seven days via a document.
- If the payment is not made within seven days, a legal case is to be submitted in order to obtain the funds.

Environmental fines not being paid is a growing problem. In the case a fine is not paid, the Parliament's Committee on Environment and Climate Change had passed in February 2025 to hold discussions with relevant parties in order to stop such businesses.
Environmental Regulatory Authority (ERA) and Attorney General's Office heads had been called to the Parliament committee and questioned in October 2024 regarding the failure in environmental fine payments.
As per what the ERA has told the committee, as a considerable amount of time passes where the state does not receive the fine payments, the biggest obstacle for the ERA in acquiring said funds is them not having the power to to take the issue to court.
The Attorney General's Office stated that the issue of international maritime vessels running aground onto Maldivian reefs, being fined and leaving after not paying the fine has occurred quite a bit in the last three years.
Additional issues marked in the audit report
- As a considerable amount of Microsoft Volume Licenses had not been given to state administrations after being bought by the former government's NCIT (now the National Digital Service) via the ministry in 2021, they had been in disuse. Of the 20,000 Microsoft 365 licenses, only about half had been used by June 2022. There was an expense of MVR 18.3 million for the licenses in use.
- Of the products that did not include Microsoft, more than 9,000 licenses had not been handed over, with an expense of MVR 2.6 million.
- The ministry did not monitor nor evaluate whether the purpose of the "Home Solar" program had achieved its objectives as per the agreement, a program which ran in 2021 from Fenaka Corporation in cooperation with the previous government.
- The financial circular and project agreements were not observed regarding the financial aid to be given to councils in managing waste in 20 islands.