ADB Meeting Audit Sparks Controversy Over Fund Mismanagement

An additional inquiry will be conducted into the procurement of goods and services related to the 52nd Asian Development Bank Annual General Meeting in 2019, focusing on potential material mismanagement within the Ministry of Civil Services.

During a parliamentary session, Esrom Immanuel, the Chair of the Standing Committee on Public Accounts, proposed a motion to discuss the findings of a special investigation report concerning the procurement processes tied to the ADB meeting.

The responsibility for organizing the international event, which witnessed participation from over 3,000 attendees from 76 countries, fell to the Ministry of Civil Service. The former government, as the host nation, allocated $10 million for the event, but actual expenses reached $10.9 million, prompting concerns over fund management and transparency.

The Assistant Minister for Finance indicated that the Auditor General’s report, which is foundational to this investigation, uncovers several critical issues including allegations of fraud, non-adherence to financial protocols, and conflicts of interest regarding vendor selections.

He mentioned that the audit revealed enough evidence to suggest that fraudulent activities may have been involved in some payments. Immanuel noted that the investigation highlighted delays in the contracting process and inefficiencies in financial management.

He pointed out that while the investigation and potential reforms are essential, the report faced significant delays. Completed in December 2020, it was only presented to Parliament in May 2023.

Furthermore, he underscored the necessity of this investigation for implementing essential reforms and called for ongoing oversight to avert future mismanagement of public funds.

In response, Speaker Ratu Naiqama Lalabalavu invoked Standing Order 20, directing the issue to the public accounts sub-committee for further scrutiny, and is now awaiting their findings.

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