The Standing Committee on Public Accounts (PAC) has emphasized the need for the Sugar Industry Tribunal (SIT) to implement thorough due diligence processes and to collaborate with a reputable accounting firm, following alarming findings concerning audit irregularities and deficient financial controls highlighted by the Office of the Auditor-General. This recommendation comes after a detailed review of the Tribunal’s financial statements spanning from 2017 to 2020, which attracted disclaimer and qualified audit opinions largely due to missing documentation and non-compliance with essential accounting standards.
The Auditor-General’s report revealed significant gaps, indicating that the Tribunal could not substantiate the impairment assessment for receivables amounting to $217,106. Moreover, it pointed out the absence of VAT reconciliations totaling $17,015, as well as unresolved fiscal discrepancies tied to $181,722 linked to the Near Infrared Project, obstructing the accuracy of the financial reports as of December 31, 2020.
Further concerns were raised regarding non-compliance with International Financial Reporting Standards (IFRS), along with inadequate internal controls relating to cash management, payments, and asset oversight. The PAC highlighted that despite the Tribunal’s engagement with an accounting firm on an irregular basis, there was no apparent progress in improving financial reporting.
“The Tribunal must ensure that any accounting firm it engages is thoroughly vetted and capable of fulfilling IFRS compliance and adhering to the Financial Management Act 2004,” the Committee stressed. Additionally, it noted that the Tribunal reported submitting its 2021 financial statements to the Auditor-General in May 2025, while the accounts for 2022 and 2023 are still pending completion.
Budget constraints have surfaced as a significant challenge, as the Tribunal indicated that its operating grant is insufficient for essential capital purchases like vehicles, computers, and furniture. The PAC has recommended that the Tribunal receive adequate, clearly defined budget allocations to support effective operations and uphold financial governance.
This situation parallels previous discussions surrounding the Tribunal’s continued trials with timely financial reporting, as seen in earlier PAC hearings. Similar issues raised include the recurring delays in submitting financial statements, primarily attributed to staffing shortages and budget limitations, which have hindered the Tribunal’s financial governance.
Despite these obstacles, there remains a beacon of hope for improvement. With a commitment to resolving past discrepancies and bolstering financial controls, the Tribunal’s proactive measures, such as seeking experienced accounting professionals and advocating for improved resource allocation, could lead to a more stable financial environment. The ongoing efforts to enhance financial accountability are crucial not only for the Tribunal’s operations but also for fostering a resilient sugar industry in Fiji, ultimately aiming to restore public confidence in its accountability mechanisms.
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