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Fiji’s ADB Meeting: Unraveling a $10 Million Fraud Scandal

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The Ministry of Civil Service has referred significant allegations of fraud and legal violations to the Fiji Independent Commission Against Corruption (FICAC), concerning the prior administration’s management of the 52nd Asian Development Bank Leaders Meeting in 2019.

This referral was initiated last year and is now being revisited by the Ministry of Civil Service alongside the Ministry of Finance.

During a parliamentary session, Assistant Minister for Finance Esrom Immanuel reported that the Office of the Auditor-General had identified signs of fraud in financial transactions, as well as breaches of pertinent laws, regulations, and policies related to the procurement of goods and services. He noted that there were also limitations within the Financial Management Information System (FMIS) that affected payment processing during the event in question.

Immanuel indicated that the Auditor-General found a high incidence of discrepancies, leading to the decision to launch an investigation.

He mentioned that the Fijian Government allocated $10 million for the meeting’s expenses, but the actual expenditure amounted to $10.9 million after the event’s conclusion. The additional $900,000, representing the VAT, was drawn from the Government’s Budget Head.

He further stated that the Standing Committee on Economic Affairs identified delays caused by the Ministry of Civil Service and its previous minister in finalizing the report. This report was eventually completed on December 2, 2020. While some delays were attributed to COVID-19, there were also allegations of intentional postponement to present the report to Parliament, which ultimately occurred on March 27, 2023, after the Coalition Government assumed office.

Immanuel noted that there were further delays from the Ministry of Civil Service in forwarding the report to the relevant authorities, including FICAC, for further scrutiny. It was only after consultations in November 2023 that the current Permanent Secretary and his team submitted it for investigation.

In light of the elapsed time and potential actions by those involved, the Committee has recommended that the current Executive Management of the Ministry of Civil Service, with support from the Ministry of Finance, actively follow up with FICAC regarding the status of the referred cases.

Additionally, according to Standing Order 121(5), Parliament will discuss the report’s contents in a future session.

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