The Standing Committee on Public Accounts is calling for further investigations into suspected fraudulent activities surrounding the Asian Development Bank annual meeting hosted by the government in 2019. Committee chairman Esrom Immanuel reported in Parliament last week that their investigation into the event, which had a budget of $10.9 million, uncovered various discrepancies in the Auditor-General’s Special Investigation Report on the procurement of goods and services.
Mr. Immanuel emphasized the seriousness of the issues identified and noted that, after discussing with relevant stakeholders, the committee agreed on the necessity for additional investigations by law enforcement agencies based on their findings. These issues reportedly involve fraudulent elements in payments and violations of applicable laws, regulations, and policies concerning procurement practices, as well as limitations in the financial management information system related to payment processing.
The committee also highlighted that there were significant delays by the Ministry of Civil Service and its former minister in finalizing the report, which was completed on December 2, 2020. Despite setbacks attributed to COVID-19, there were claims of intentional delays that postponed the report’s presentation to Parliament until March 27, 2023, under the new government.
Furthermore, the Ministry of Civil Service took time to direct the report to appropriate authorities, including the Fiji Independent Commission Against Corruption (FICAC) for further inquiry. This was eventually accomplished around November 2023 by the current permanent secretary and team after consultation.
Immanuel stated that the committee has recommended actions for the Ministry of Civil Service and Ministry of Finance to address the issues raised during the inquiries. Given the time that has elapsed and movements by those implicated, he urged the current executive management of the Ministry of Civil Service, with assistance from the Ministry of Finance, to follow up with FICAC regarding the status of the referenced cases.
Although some recommendations have been implemented by the Ministry of Civil Service, the committee stressed that the internal audit team of the Ministry of Finance or the Office of the Auditor-General should perform a follow-up audit. This audit should focus particularly on violations of laws, rules, and policies in procurement processes, as well as addressing the limitations in the financial management information system related to payment processing.