In 1988, the Suva City Council faced significant financial challenges and considered allocating up to $169,000 for accounting services to reorganize its operations. An article published on April 6, 1998, in The Fiji Times noted that the council was awaiting a decision from the Economic and Social Commission for Asia and the Pacific (ESCAP) about potential funding that could provide free consulting for the restructuring initiative.
In the previous year, the council had interviewed several local firms for the restructuring project. The candidates included Coopers & Lybrand, Arthur Andersen, Maxumise Fiji, and a team led by former Speaker of the House, Sir Vijay Singh, alongside ex-VAT Unit head Malakai Tadulala.
Initially, Coopers & Lybrand proposed a fee of $215,600 but later revised it to $169,000 for 154 days of service. Arthur Andersen quoted $149,553 for 121 days of work, while Maxumise Fiji offered $75,000 for 75 days, and Price Waterhouse submitted a bid of $65,698.
Former Lord Mayor Dhansukh Lal Bhika highlighted the urgency for restructuring, pointing out that the council had been dealing with severe financial issues, management disputes, and various operational challenges 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,” Mr. Bhika stated.
He added that the council was grappling with financial difficulties, disputes between senior management and councillors, outstanding arrears, union issues, and vacant properties. The financial problems included unsuccessful attempts to secure a $1 million loan from the Fiji National Provident Fund in 1997, as well as a current request for a $5 million interest-free loan from the government. At the time of the article’s publication, Local Government Minister Vilisoni Cagimaivel had not received a proposal regarding the latter loan.
Mr. Bhika indicated that the restructuring was part of the council’s broader efforts to establish a more “affordable and sustainable level of operation” amidst the ongoing financial and administrative difficulties that year.