The government provided a significant investment of $123.6 million to Walesi between 2015 and December 2022. However, despite this financial support, the company struggled to generate adequate revenue and thus remained largely dependent on government funding. This situation was highlighted by Deputy Prime Minister and Minister for Communication Manoa Kamikamica during a ministerial statement in Parliament.
Mr. Kamikamica reported that out of ten payments totaling $9.3 million, sufficient documentation was lacking, making it challenging to verify their compliance with intended purposes and legal requirements. Additionally, an audit could not accurately assess the project’s total cost against its budget due to the absence of a necessary project closure report.
An analysis revealed that expenditures on inventories and property enhancements exceeded $70 million. Mr. Kamikamica indicated that approximately $80 million, or 68 percent of the total expenditure, could be categorized as wasteful spending. He emphasized the impact of this financial mismanagement, suggesting that the money could have been better spent on essential infrastructure like hospitals, roads, and bridges.
Further compounding these concerns, the investigation found that procurement regulations were frequently disregarded. Significant contracts, including a $3.6 million project management agreement, were awarded without the competitive tendering process. Alarmingly, $2.2 million worth of backup batteries were disposed of due to improper storage, a clear and shocking misuse of taxpayer funds.
The findings of this investigation have been forwarded to the Fiji Independent Commission Against Corruption (FICAC) for additional scrutiny, with Mr. Kamikamica stating that the government will not simply overlook these serious allegations of mismanagement and legal infractions.
While the situation raises serious concerns about financial governance, the government’s proactive response indicates a commitment to addressing potential misdeeds. This could pave the way for improved accountability and management of public funds in future projects.
In summary, the experiences with Walesi reveal significant inefficiencies and accountability issues, but the subsequent investigations spearheaded by the government may lead to reforms and wiser investment practices moving forward, ultimately benefiting public infrastructure and services.
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