The government has invested a remarkable $123.6 million into Walesi from 2015 until December 2022. However, this significant funding has not resulted in the company achieving financial stability, as it continues to depend heavily on government support due to insufficient revenue generation.
During a recent parliamentary session, Deputy Prime Minister and Minister for Communication, Manoa Kamikamica, revealed critical insights regarding Walesi’s financial management. He highlighted concerns that ten payments amounting to $9.3 million could not be verified due to missing documentation. This lack of records raises questions about whether these payments were in line with the intended funding purposes and legal standards.
Kamikamica pointed out that audits were hindered due to the absence of a project closure report, making it difficult to accurately reconcile the actual costs of the project with the initial budget. A preliminary analysis regarding the purchase of inventories and property, plants, and equipment conducted between 2015 and 2022 suggested that the project may have exceeded $70 million in costs.
He stated that approximately $80 million, or 68 percent of the total expenditure, could be considered wasteful spending. “Just imagine how many hospitals, roads, and bridges could have been constructed using these funds,” Kamikamica remarked. The Minister also noted that procurement regulations were frequently bypassed, leading to high-value contracts, such as a $3.6 million project management contract, being awarded without a competitive tender process.
Furthermore, concerns were raised regarding $2.2 million worth of red-flow batteries bought for backup power, which had to be discarded due to improper storage—reflecting an alarming waste of taxpayer money. The investigation’s findings suggest severe mismanagement and potential legal violations, prompting a referral to the Fiji Independent Commission Against Corruption (FICAC) for further action.
Despite the troubling revelations, there is a sense of accountability as the government vows to tackle these issues head-on, signaling a commitment to improve transparency and financial management strategies in the future.
This situation serves as an important reminder of the need for robust oversight and proper financial stewardship in government funding initiatives. While the current findings reveal significant mismanagement, there is hope that this experience will lead to reforms that ensure more prudent use of public funds, ultimately benefiting the country and its infrastructure needs.
Overall, this inquiry might pave the way for positive changes in governance and financial governance, reflecting the government’s commitment to the responsible use of taxpayer resources.
Leave a comment