Dhiffushi Council loses MVR 4.4M in rent money

The Auditor General’s Office has found the K. Dhiffushi Council negligent in collecting over MVR 4.4 million in rent owed to the council.

The Dhiffushi Council’s 2020 audit report, signed by the Auditor General Hussain Niyazy states the council failed to comply with the public financial regulation in collecting rent.

The audit found MVR 3.8 million out of the MVR 4.4 million in outstanding rent payments should have been received by the council two years ago.

According to the public finance regulation, institutions that fail to receive the rent after engaging in rent recovery efforts within the mandated time frame must issue a seven-day notice to settle the rent payment. It must follow a second seven-day notice, after which the institution must file the case with the court.

And if the tenant fails to pay the rent even after the case is submitted to court, the Finance Ministry must be notified.

The audit also found the council failed to comply with the public finance regulation in management of its assets.

Dhiffushi is home to a booming local tourism business, with multiple guesthouses.