Commission makes serious allegations against FRU through its finding

Several serious allegations have surfaced in the Commerce Commission Report in relation to the Fiji Rugby Union lottery case.

The commission findings allege that as at 30th December, 2010, balance shown on the FRU lottery account bank statements total 104 thousand dollars.

However the Commerce Commission said based on the sold ticket butts obtained during the commission's search and seizure at the FRU office, the total amount collected from the ticket sales should stand at just over 350 thousand dollars.

The Commerce Commission said at this stage, it could not take into account any funds that may still be with the agents for the sold tickets due to unavailability of information in this regard.

It said a full audit needs to be undertaken as the bank accounts were designated for the lottery funds.

According to the report, it has been revealed that an analysis of the sold, unsold and void tickets shows that 52 percent of the tickets are missing or unaccounted for.

The commission said from a total of 100 thousand FRU lottery tickets printed, only 47 thousand 591 tickets are accounted for, leaving 52 thousand and 409 tickets unaccounted.

The findings also allege that according to information and data collected and analysed, it shows that significant amount of cash collected from the rugby lottery ticket sales has been used for purposes other than that stated in the lottery permit.

The most notable payments are airfares, accommodation, visa application and game tickets for the 2010 Hong Kong 7s for a senior FRU Lottery Director which was paid from lottery funds.

This amounted to $4,500.

He was also paid just over $1,100 for accommodation and travels to attend the Scotland 7s and just over $2,800 for accommodation, phone calls and meals to attend the London 7s in 2010.

A separate bank account was created and payments were made into the account.

The commission said cheque number 1286 was written for $8,500 for this transaction.

However the commission alleges the cheque number is fictitious since the payment was made in cash.

Other payments have been highlighted for accommodation, meals, and airfares in London, Auckland and Wellington.

The commission also said based on the bank statements obtained during its search and seizure, FRU's lottery account has just over 104 thousand dollars.

It said the total prize money is 300 thousand dollars and the question arises on how the FRU will make the payment to the prize winners.

The commission said it wrote to FRU last Thursday to obtain a copy of the most recent bank statements for the two lottery accounts and any other account of the FRU but was advised that any request for information needs to be directed to their lawyers, Munro Leys.

Their lawyers referred the commission to the bank and the bank referred the commission back to the FRU.

It has also been revealed by Commission Chairman, Doctor Mahendra Reddy that Munro Leys wrote to the commission last Tuesday and said that the FRU has done nothing wrong, that the commission has abused its powers, that the Fiji Commerce Commission Decree does not cover lottery sales and conduct and that selling lottery tickets at differential prices is same as selling goods at a supermarket on discount.

We have spoken to the FRU Chairman, Bill Gavoka, he has refused to make any comments on the commission's announcement today the Sports Minister's call for the current FRU administration to resign.

FRU Chief Executive, Keni Dakuidreketi has also refused to make any comments on the commission report and the call for their resignation.

However it has been confirmed that a special FRU board meeting is expected to take place tomorrow to discuss the matter.


Story by: Vijay Narayan