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ADB Meeting Scandal: Calls for Investigation into $10 Million Procurement Mismanagement

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An investigation will be conducted into the procurement of goods and services related to the 52nd Asian Development Bank Annual General Meeting held in 2019, focusing on potential mismanagement by 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 special investigation report regarding this procurement process. The Ministry of Civil Service was responsible for organizing this international event, which saw participation from over 3,000 attendees across 76 countries.

As the host nation, the previous government allocated $10 million for the event, but the actual expenses reached $10.9 million, sparking concerns about financial transparency and fund management. The Assistant Minister for Finance indicated that the Auditor General’s report, which prompted the investigation, identified several key issues, including potential fraud, violations of financial regulations, and conflicts of interest concerning vendor selections.

He noted that the Auditor General’s Office discovered substantial evidence of fraud in some transactions during the audit. Immanuel mentioned that the investigation unveiled delays in the approval of significant contracts for the event and highlighted inefficiencies in financial management.

He pointed out the importance of both the investigation and subsequent reforms, lamenting the report’s considerable delay, as it was finalized in December 2020 but only presented to Parliament in May 2023. Immanuel stressed the necessity of oversight to avert future misappropriation of public funds.

In related proceedings, Speaker Ratu Naiqama Lalabalavu utilized Standing Order 20 to refer the investigation to the public accounts sub-committee, which will conduct further inquiries and provide a report.

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