In 1988, the Suva City Council faced significant financial challenges and was considering allocating up to $169,000 for accounting services aimed at restructuring its operations. A report published on April 6, 1998, in The Fiji Times indicated that the council was awaiting a decision from the Economic and Social Commission for Asia and the Pacific (ESCAP) regarding potential funding that could offer free consultancy for this restructuring initiative.
The previous year, the council had conducted interviews with several local firms for the restructuring work. Notable contenders included Coopers & Lybrand, Arthur Andersen, Maxumise Fiji, and a team led by former Speaker of the House, Sir Vijay Singh, and ex-Head of the VAT Unit Malakai Tadulala.
Initially, Coopers & Lybrand proposed a fee of $215,600, which they later revised to $169,000 for a total of 154 days of service. Arthur Andersen offered $149,553 for 121 days, Maxumise Fiji suggested $75,000 for 75 days, and Price Waterhouse submitted a bid of $65,698.
Former Lord Mayor Dhansukh Lal Bhika stressed the urgency of the restructuring, highlighting the council’s financial strain, ongoing management disputes, and other operational difficulties that had persisted for the past five months. “It is now five months since we have experienced the brunt of the crisis which we are all aware of,” remarked Mr. Bhika. He mentioned that the council had been plagued by financial issues, conflicts between senior management and councillors, outstanding debts, union-related troubles, and unoccupied real estate properties.
The council’s financial difficulties included unsuccessful efforts to secure a loan of $1 million from the Fiji National Provident Fund in 1997, as well as a current request for a $5 million interest-free loan from the government, which had not received a proposal at the time of this article’s publication from then Local Government Minister Vilisoni Cagimaivel.
Mr. Bhika indicated that the restructuring effort was part of the council’s larger goal to establish a more “affordable and sustainable level of operation” amidst the ongoing financial and administrative challenges of that year.