Scandal Unveiled: ADB Meeting’s Financial Mismanagement Under Scrutiny

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

In Parliament, Chair Esrom Immanuel of the Standing Committee on Public Accounts proposed a motion to discuss the findings of a special investigation report related to this procurement process. The Ministry of Civil Service was tasked with organizing the prominent international event, which hosted over 3,000 participants from 76 nations.

As the host, the previous government allocated $10 million for the event, but upon its conclusion, the actual expenses soared to $10.9 million, sparking concerns regarding financial transparency and management.

The Assistant Minister for Finance indicated that the Auditor General’s report, which initiated the investigation, pointed out several critical issues such as potential fraud, violations of financial regulations, and conflicts of interest in the selection of vendors. He mentioned that the Auditor General’s Office found enough evidence to suggest that fraud may have occurred in some payments.

Immanuel noted that the investigation uncovered delays in processing significant contracts for the event and highlighted inefficiencies in managing the allocated funds. He acknowledged that while the investigation and necessary improvements were important, the report experienced considerable delays, being finalized in December 2020 but only presented to Parliament in May 2023.

He stressed the investigation’s significance in prompting essential reforms and called for ongoing oversight to avert future mismanagement of public funds. In a related development, Speaker Ratu Naiqama Lalabalavu invoked Standing Order 20 to assign the matter to a public accounts sub-committee for additional inquiry, and a report will be expected from them.

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