Leaked documents spreading on social media allege a significant financial crisis at the Fiji Sports Council (FSC), revealing that its cash reserves plummeted from over $2 million in March 2023 to just $32,000 by February 2024. The reports, shared by former Fiji Times journalist Charlie Charters, suggest that this financial downturn was largely due to a “human resources restructure” implemented in mid-2023, which reportedly doubled the council’s payroll costs without the board’s approval.
Details from the documents indicate a dramatic increase in casual staff costs, soaring from $480,000 in the first ten months of 2022 to nearly $1.1 million during the same timeframe in 2023. By December 2023, dissatisfaction among board members grew to the extent that they began refusing to sign cheques until management adhered to directives aimed at curbing the rising payroll expenses. This impasse was only resolved following intervention from the Minister for Youth and Sports, Jese Saukuru.
The documents further highlight the council’s financial struggles, noting that by January 30, 2024, the increased salary costs had contributed to losses exceeding $1 million over a five-month period. In a controversial move, FSC management signed a $20 million “letter of intent” with a New Zealand firm to construct three sports grounds featuring artificial turf, again without board approval. Concerns were raised about the financial stability of the New Zealand company, leading board members to seek legal counsel, which revealed that the contract was invalid due to the lack of board consent.
The documents also mention that if the FSC board’s resolutions had been followed and mismanagement addressed, the council would likely not be facing its current financial crisis. A hopeful note in the document suggests that there is potential for a new direction for the organization. It emphasizes the need for competent leadership, specifically a chairman with expertise in property and development, as well as a qualified CEO to leverage long-term funding opportunities tied to the masterplan set by the previous board.
Moreover, Charters pointed out breaches of environmental consents related to capital works at FSC’s lawn nursery in Sigatoka and alleged irregularities concerning an untendered purchase of motor vehicles. The document raises serious concerns regarding the management of the council under former FSC chair and current CEO Gilbert Vakalalabure, who has not responded to requests for comments about the allegations. Efforts to reach Sports Minister Jese Saukuru and FSC deputy chairman Peter Mazey for further commentary were unsuccessful.
This situation highlights the critical need for transparent governance and careful financial management within organizations, particularly in the sports sector, to ensure sustainability and community trust moving forward.
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