In 1988, the Suva City Council faced severe financial challenges and was considering allocating up to $169,000 for accounting services aimed at restructuring its operations. An article published on April 6, 1998, by The Fiji Times, revealed 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 the restructuring initiative.
The previous year, the council had interviewed several local firms for the restructuring project. Among the contenders were 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.
Coopers & Lybrand initially quoted a fee of $215,600 but later revised it to $169,000 for 154 days of service. Arthur Andersen offered $149,553 for 121 days, while Maxumise Fiji proposed $75,000 for 75 days, and Price Waterhouse submitted a bid of $65,698.
Former Lord Mayor Dhansukh Lal Bhika highlighted the urgency of the restructuring, noting that the council had been under considerable financial strain, management conflicts, and various operational issues over the preceding five months. “It is now five months since we have experienced the brunt of the crisis which we are all aware of,” Bhika stated. He further mentioned that the council had been plagued with financial problems, disputes between senior management and councillors, unpaid debts, union issues, and empty rental properties.
The council’s financial troubles included failed attempts to secure a $1 million loan from the Fiji National Provident Fund in 1997 and a current request for a $5 million interest-free loan from the government. At the time of the article’s publication, then Local Government Minister Vilisoni Cagimaivel had not yet received a proposal for the latter loan.
Bhika emphasized that the restructuring was part of the council’s broader strategy to achieve a more “affordable and sustainable level of operation” amid ongoing financial and administrative difficulties that year.