In 1988, the Suva City Council faced financial challenges and contemplated a budget of up to $169,000 for accounting services aimed at restructuring its operations.
An article dated April 6, 1998, reported that the council was awaiting a decision from the Economic and Social Commission for Asia and the Pacific (ESCAP) regarding potential funding that could offer complimentary consultancy for the restructuring initiative.
The previous year, the council had interviewed numerous local firms for the restructuring project. Among the candidates were Coopers & Lybrand, Arthur Andersen, Maxumise Fiji, and a team led by former Speaker of the House Sir Vijay Singh alongside ex-VAT Unit head Malakai Tadulala.
Initially, Coopers & Lybrand proposed a fee of $215,600, which they later revised to $169,000 for 154 days of service. Arthur Andersen quoted $149,553 for 121 days, while Maxumise Fiji suggested $75,000 for 75 days, and Price Waterhouse submitted a bid of $65,698.
Former Lord Mayor Dhansukh Lal Bhika highlighted the urgent need for restructuring, citing the council’s significant financial strain, management conflicts, and a host of operational issues over the prior five months.
“It has been five months since we have felt the full impact of the crisis that we all recognize,” Mr. Bhika noted. He elaborated that the council was plagued by financial difficulties, disputes among senior management and councillors, outstanding debts, union issues, and unoccupied properties.
The article revealed the council’s financial struggles, including failed attempts to secure a $1 million loan from the Fiji National Provident Fund in 1997 and a current application for a $5 million interest-free loan from the government. The then Local Government Minister Vilisoni Cagimaivel had not received a proposal for the latter loan at the time of the article’s publication.
Mr. Bhika explained that the restructuring was part of the council’s larger goal to attain a more “affordable and sustainable level of operation” amid ongoing financial and administrative challenges that year.