Investigation Launched into ADB Meeting Fund Mismanagement

An additional investigation is set to take place regarding the procurement process for goods and services linked to the 52nd Asian Development Bank Annual General Meeting held in 2019, amid potential material mismanagement by the Ministry of Civil Services.

During a recent session in Parliament, Esrom Immanuel, the Chair of the Standing Committee on Public Accounts, proposed a motion to discuss the special investigation report concerning the procurement related to the ADB meeting. The Ministry of Civil Service was assigned the task of organizing this international event, which welcomed over 3,000 participants from 76 countries.

As the host nation, the previous government allocated $10 million for the event; however, the total expenditure reached $10.9 million, prompting concerns about financial transparency and the management of funds.

The Assistant Minister for Finance noted that the Auditor General’s report, which serves as the basis for the investigation, points out several significant issues, including suspected fraud, breaches of financial regulations, and conflicts of interest within vendor appointments. He stated that the Office of the Auditor General found adequate evidence to support claims of fraud concerning certain payments.

Immanuel highlighted that the investigation uncovered delays in handling major contracts for the event and inefficiencies in fund management. He remarked that while both the investigation and its subsequent recommendations are essential, the report was notably delayed. Although it was finalized in December 2020, it was not presented to Parliament until May 2023.

He stressed the importance of the investigation for enacting necessary reforms and called for ongoing oversight to avert any future mismanagement of public funds. In the meantime, Speaker Ratu Naiqama Lalabalavu invoked Standing Order 20 to refer the matter to the public accounts sub-committee for further investigation and will await their findings.

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