Audit Reveals $54 Million Spent on Free-Degree Scheme With Critical Oversight Gaps

An audit by the Auditor General’s Office has revealed that the Maldivian government spent approximately USD 54.2 million on the Free-Degree Programme between 2019 and 2024, while uncovering significant failures in record-keeping and eligibility vetting. Financial outlays for the scheme grew steadily over the six-year period, starting at USD 5.5 million in 2019 and peaking at USD 10.6 million in both 2022 and 2023. Spending slightly decreased to USD 9.8 million in 2024. While the programme attracted 19,265 applications and granted 16,388 study placements, the audit highlights a systemic failure by the Ministry to track whether these participants actually completed their degrees. This lack of oversight led to substantial financial waste. The report identifies USD 1.23 million spent on 790 students who failed to graduate. More concerningly, the audit found that USD 600,000 was allocated to 271 applicants who already possessed a degree, suggesting a breakdown in the vetting process used to determine eligibility. Beyond financial mismanagement, the audit criticizes the programme's strategic direction. The scheme has failed to make a significant dent in sectors that remain heavily reliant on foreign labor. Furthermore, the report notes that popular vocational tracks for male students were entirely omitted from funding, limiting the programme's impact on the workforce. Students are also feeling the financial pinch. The percentage of programs requiring out-of-pocket payments exceeding USD 3,891 surged from 15 percent to 46 percent during the audit window, increasing the burden on beneficiaries. To address these failings, the Auditor General has recommended the immediate establishment of a comprehensive tracking system for enrollments and drop-outs. The government is also urged to recover funds from those who did not complete their degrees, refocus the scheme toward high-need professional fields, and incorporate vocational training options to better align education with national economic needs.