Issues regarding the previous administration purchasing items at inflated prices for the Addu Equatorial Hospital have surfaced from the hospital's audit reports covering the years 2022, 2023, and 2024.

The compliance audit report of the Addu Equatorial Hospital, released by the Auditor General's Office, has highlighted 14 specific issues. The majority of these involve procuring items and awarding contracts at inflated and unfair prices.

According to the report, general consumables required by the hospital were acquired during this period at prices well above market value. Specifically, items worth MVR 3,083,388 examined as a sample in the audit were purchased at a markup of MVR 2,083,966 compared to market rates and prices paid by other state institutions.

In addition to general consumables, the audit report noted that due to the lack of a sound procurement policy for medical consumables, items were purchased at exorbitant prices, and certain supplies were not received within required timeframes. Out of the sampled medical items, MVR 1,964,971 was spent across 23 items that were available on the market for MVR 948,511 less.

The audit report also highlighted that the bid submitted by the lowest-pricing company for replacing the exterior tiles of the Addu Equatorial Hospital building was canceled, and the work was awarded to another company at a price exceeding the estimated cost by over MVR 1 million. Furthermore, the renovation of the hospital's septic operating theater room and AC ducts was awarded at a price exceeding the estimated budget by more than MVR 173,189.

Additionally, the report noted that the agreement with the party contracted to purchase a new van for the hospital was terminated, and a van was procured through another party without public announcement at a price inflated by MVR 583,000.

Other notable findings include spending MVR 165,000 in rent for three unused rooms and purchasing a laboratory consumable item for MVR 1.7 million that could have been obtained for MVR 34,000. The audit report also detailed instances where actions were taken to unduly benefit specific parties to the detriment of the hospital and the state.

In light of these findings, the audit report urged strict adherence to state public finance regulations moving forward and called for strengthening the hospital's financial systems to prevent the recurrence of such incidents.