ADB Meeting Probe: Allegations of Mismanagement and Fraud Uncovered

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

During a parliamentary session, Esrom Immanuel, Chair of the Standing Committee on Public Accounts, proposed a motion to discuss the findings of a special investigation report concerning this procurement process. The Ministry of Civil Services was tasked with organizing the significant international event that drew over 3,000 participants from 76 countries.

As the host nation, the previous administration dedicated $10 million to cover the expenses for the event. However, the final expenditure amounted to $10.9 million, prompting concerns over the transparency and management of these funds.

The Assistant Minister for Finance indicated that the Auditor General’s report, which prompted the investigation, pointed out several critical issues, including potential fraud, breaches of financial regulations, and conflicts of interest in vendor selections. He noted that the Auditor General’s Office discovered adequate evidence to suggest fraud was involved in some of the transactions.

Immanuel stated that the investigation uncovered delays in the processing of key event contracts and inefficiencies in the management of financial resources. He highlighted that while the investigation and subsequent reforms are vital, the report faced significant delays in its presentation. Even though it was finalized in December 2020, it was not submitted to Parliament until May 2023.

He underscored the necessity of the investigation for implementing essential reforms and called for ongoing monitoring to avert future mismanagement of public funds. Additionally, Speaker Ratu Naiqama Lalabalavu has invoked Standing Order 20 to refer the matter to the public accounts sub-committee for further investigation, with anticipation for their report.

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