Auditor general exposes cronyism

by Maryam Omidi and Ahmed Naish
Minivan News brings you the first part in a breakdown of a 29-page auditor general report on Theemuge, the palace of the former president, Maumoon Abdul Gayoom.

More than US$3 million earmarked to be distributed among the poor and improve social welfare in both 2007 and 2008 was spent on the president’s relatives, ministers and their families, senior government officials and some MPs, the latest auditor general’s report reveals.

The audit report on Theemuge, published on Thursday, states 49 per cent of the palace’s budget, equivalent to Rf48.2 million (US$3,750,000), was diverted from the poor in 2007 and 52 per cent of the budget, or Rf44.9 million (US$3,500,000), in 2008.

“We believe this is corruption and misappropriation of public funds,” the damning report reads.

The report, which focuses on expenditure from the Theemuge budget for 2007 and 2008, also covers the palace’s expenses, including household costs; the president’s launch, purchased in 2002; the construction of Theemuge; property and other assets bought under the budget; and the president’s amenities.

But Aneesa Ahmed, a member of the main opposition group, the Dhivehi Rayyithunge Party (DRP), has described the allegations against the party's leader as “unsubstantiated”.

“By publishing such a report, the auditor general has violated clause 128 of the constitution. If he has reason to believe the former president misused public funds, he has to first of all get the Anti-Corruption Commission to investigate.”

Article 128 states a person who has served as president without committing any offence shall be entitled to the highest honour, dignity, protection and financial privileges.

The poor and social welfare

An examination of invoices and statements by the auditor general reveals that funds intended for the poor were instead spent on medical trips to Singapore by “influential senior officials”.

This includes their travel expenses, their stay in expensive hotels, their food, taxis, long-term apartment rental and medical check-ups.

More than SGD$2.3 million (US$1,500,000) was spent on one of Gayoom’s relatives and his family on trips to Singapore throughout 2007 and SGD$1.4 million (US$930,000) for another relative and his family for multiple trips to Singapore.

In March 2008, SGD$23,756 (US$16,000) was spent for a minister’s grandson to stay in a hotel in Singapore for 21 days; in April, SGD$50,022 (US$33,000) was spent on medical expenses for a friend of the president’s; and in July 2008, SGD$6,905 (US$4,600) was spent on two pairs of glasses for a minister and his wife.

US$13,000 in cash was given to the leader of an unnamed political party on different occasions throughout 2008.

The funds, spent by the Maldives Government Trade Centre (MGTC) in Singapore, were to be reimbursed by Theemuge.

Invoices and statements of the expenses show most of the trips were arranged via a note or telephone call from Theemuge rather than following a formal procedure.

“Therefore, these expenses were made to gain the love, loyalty and support of the recipients, and since these expenses were not made for state purposes or for the benefit of all citizens, we note that these expenses were made unlawfully from the budget for personal benefit and gain,” the report states.

Private parties

The report reveals that while most people who requested healthcare assistance were impoverished, three trends were noticeable.

The first was the acceleration of welfare assistance for those who attended DRP events in 2008. Letters collected at these events were sent to Theemuge through the president’s office to expedite the process for the selected applicants.

Secondly, among the private recipients of welfare, 60 per cent were “coincidentally” members of the DRP.

And thirdly, no letters submitted to Theemuge for assistance in 2007 and 2008 could be found, despite repeated requests from the auditor general’s office.

On the well-known “US$300 and a return ticket” doled out by Theemuge for ordinary citizens in need of healthcare assistance, the report notes this was given for trips to Trivandrum, India, and Colombo, Sri Lanka, on the condition that the family would submit records of all expenses and return any unspent money.

In a Television Maldives presidential debate in September 2008, Gayoom said the public did not have to “beg” for medical care, which was spent from the state budget according to legal procedures.

“80 per cent of the Theemuge budget is aid for the Maldivian people. The salaries, food, housing and medical care for the people there.

“84 per cent is for the benefit of the people. These things are being talked about for some other purpose.”

Kings and monarchs

Around Rf500,000 (US$39,000) in 2007 and Rf600,000 (US$47,000) in 2008 was spent on prizes for school competitions and gifts for events the president attended, mainly on invitation from senior government officials or their relatives and the president’s family or their associates, according to the report.

It notes numerous wristwatches, including some worth more than Rf100,000 (US$7,800) were purchased for these parties and events.

The expenditure is described as “unlawful” as it was intended not for the benefit of the majority of citizens but to gain the “admiration and support” of particular individuals. The expenses were further unaccounted for and comparable to spending by “kings and monarchs”.

On scholarships, the report states that while Rf2.5 million (US$195,000) was given as assistance to students in 2007 and Rf2.3 million (US$179,000) in 2008, there were no obvious criteria for selecting recipients. Instead, the money was doled out by the president as he saw fit.

“We note this was used for undue gain and opened the path to corruption,” the report reads.

Assistance to clubs and associations, the report adds, was not fairly distributed. While a sport club that supported DRP on one island was given Rf100,000 in 2008, others which did not back the party were denied funds.

Check back on Minivan News tomorrow for details on expenditure for Theemuge, including its construction and household expenses, the president’s launch and his amenities as well as the auditor general’s recommendations.

Related:
Bling Bling is no more - Reminiscences of the lavish lifestyle of Dictator Gayyoom of the Maldives Part II