The government allocated a significant $123.6 million to Walesi from 2015 to December 2022. Despite this substantial funding, the company struggled to become financially independent, relying heavily on government support.
During a recent parliamentary session, Deputy Prime Minister and Minister for Communication Manoa Kamikamica disclosed that ten payments totaling $9.3 million were questionable due to the absence of necessary documentation. This lack of proper records has raised concerns about whether these expenses met the intended financial guidelines and legal standards.
The deputy prime minister explained that the auditing process faced challenges in determining the total actual cost of the project relative to its budget. The absence of a project closure report, detailing the costs incurred, complicated this analysis. However, a review of inventory purchases and property, plant, and equipment added between 2015 and 2022 suggested that project expenses exceeded $70 million.
In highlighting areas of concern, Mr. Kamikamica noted that at least $80 million, or about 68% of the total expenditure, could be classified as waste. He emphasized the potential impact of this money, suggesting that it could have funded numerous hospitals, roads, and bridges.
Additionally, procurement regulations were reportedly overlooked, with several high-value contracts, including a $3.6 million project management contract, awarded without the competitive tendering process. The project manager was significantly compensated for their role, raising further questions about financial oversight.
In response to these findings, the situation has been referred to the Fiji Independent Commission Against Corruption (FICAC) for a more in-depth investigation. Mr. Kamikamica revealed particularly alarming information about $2.2 million worth of batteries meant for backup power, which were ultimately discarded due to improper storage—a grave misuse of taxpayer funds.
The deputy prime minister underscored the critical issues of management failure and potential legal violations in this scenario, asserting that the government is committed to addressing these problems and ensuring accountability.
This situation reinforces the importance of stringent fiscal oversight and governance in public-funded projects. The acknowledgment of these mismanagement issues and the commitment to investigate them can serve as a precious opportunity for reform, potentially improving future project management and financial accountability in the public sector.
In summary, while the findings reveal considerable waste and mismanagement, the government’s action to investigate and address these discrepancies reflects a commitment to accountability that can lead to more effective use of public funds in the future.
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