The Agricultural Marketing Authority (AMA) has taken significant steps to address its financial management issues by writing off over $315,000 in outstanding trade receivables along with $89,000 in unsubstantiated payables in the 2023 financial year. This decision stems from ongoing financial irregularities highlighted in recent Auditor General reports.
During a recent presentation to the Standing Committee on Public Accounts, AMA Financial Controller Ashika Naidu detailed the authority’s struggle with these debts, some of which date back several years. She indicated that the costs associated with legal action to recover these debts were deemed greater than the debts’ value, prompting the board’s decision to approve the write-off.
Naidu emphasized the challenges faced by the organization, noting that not all relevant documentation was available and that previous staff members responsible for managing these accounts are no longer with the authority. The AMA has since established a new finance team and has implemented tighter financial controls, including the adoption of modern accounting systems like MYOB and Linksoft, as well as updated policies regarding documentation and monthly reconciliations.
This financial restructuring is part of a broader effort to increase transparency and accountability within the AMA. Similar issues of financial mismanagement have been observed in governmental bodies, underscoring the need for comprehensive reforms. As the AMA transitions towards improved financial practices, it aims to strengthen its governance and operational efficiency, which is crucial for supporting farmers and enhancing agricultural practices in Fiji.
Ultimately, the proactive measures being put in place signify a commitment to rectifying past issues and fostering a more reliable financial environment within the authority, which is expected to positively impact the agricultural sector moving forward.
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