The Police Cooperative Society (POLCO) is facing renewed scrutiny as fresh allegations emerge over the awarding of a long-term catering contract, reportedly in violation of permissions granted by the Ministry of Finance. The contract in question, awarded in 2018 to Police Catering (POLCAT), is valued at MVR 350 million over a 10-year period—twice the duration authorised by the Finance Ministry’s tender board.
The matter was brought to light during a meeting of the Parliament’s Public Accounts Committee, where it was revealed that the tender board had approved a five-year contract. However, official documents now show that POLCAT was instead awarded a 10-year contract, raising concerns about procedural violations and unchecked authority within certain institutions.
The committee noted that the contract’s value—MVR 35 million annually—totals MVR 350 million over the unauthorised 10-year term. Questions have been raised as to whether the extension beyond the approved period was a deliberate attempt to secure the contract across successive administrations and limit competition.
This development comes amid an ongoing inquiry by the Public Accounts Committee into POLCO’s operations, following an audit report released earlier this year. The report detailed financial mismanagement and losses amounting to MVR 354.7 million in relation to the 2013 ‘Blues Housing Project’. The Auditor General’s Office found that the housing project, initially estimated to cost between MVR 745.3 million and MVR 859.9 million based on market averages, had ballooned to over MVR 1 billion.
In its recommendations, the Auditor General’s Office called for action against senior figures within POLCO, including members of the board of directors, citing corruption and mismanagement.
These latest revelations have intensified calls for increased oversight of corporative societies operating under uniformed institutions, especially when large sums of public funds are involved.
