Investigation Launched into ADB Event Spending Controversy

A further investigation will be conducted regarding the procurement of goods and services related to the 52nd Asian Development Bank Annual General Meeting in 2019, in light of possible significant mismanagement within the Ministry of Civil Services.

During a parliamentary session, Esrom Immanuel, Chair of the Standing Committee on Public Accounts, introduced a motion to discuss the findings of the special investigation report concerning the procurement activities linked to the ADB meeting.

The Ministry of Civil Service was tasked with organizing this international event, which saw participation from over 3,000 individuals across 76 countries.

As the host nation, the previous government allocated $10 million to cover the event’s expenses, but the final expenditure reached $10.9 million, prompting concerns over financial transparency and management.

The Assistant Minister for Finance pointed out that the Auditor General’s report, which triggered the investigation, identified several serious issues, including potential fraud, non-compliance with financial regulations, and conflicts of interest in vendor selections.

He highlighted critical findings from the report, noting that the Auditor General’s Office gathered enough audit evidence to suggest instances of fraud in some payments made.

Immanuel remarked that the investigation uncovered delays in processing key event contracts and inefficiencies in fund management.

He noted that while the investigation and subsequent reforms are essential, the report faced considerable delays in being presented. Despite being completed in December 2020, it was not delivered to Parliament until May 2023.

He also emphasized the investigation’s vital role in prompting necessary reforms and called for ongoing oversight to avert future mismanagement of public funds.

In related developments, Speaker Ratu Naiqama Lalabalavu invoked Standing Order 20, referring the issue to the public accounts sub-committee for further investigation, and the committee’s report is anticipated.

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