Evidence of alleged fraud found in the 2019 ADB AGM report

Parliament has unanimously agreed that a thorough investigation should be done into the mismanagement of funds on the process that was followed in the procurement of goods and services for the 52nd Asian Development Bank Annual Meeting that was held in Denarau, Nadi in 2019.

This is after the Chairperson on the Parliamentary Standing Committee on Public Accounts, Esrom Emmanuel, tabled in Parliament a motion to ‘Review the Special Investigation Report on Procurement of Goods and Services – 52nd Asian Development Bank Annual Meeting.

He says the Report is an investigation of possible material mismanagement in the Ministry of Civil Service, focusing on funds used for the hosting of the 52nd Asian Development Bank AGM in 2019, where the government spent a total of $10.9 million, VAT inclusive price.

Emmanuel says the Auditor General found that there was sufficient audit evidence to determine the existence of fraud.

He says they also found that there was non-compliance and anomalies in payments, and there was an inability to manage the conflict of interest arising from the appointment of the event transport provider.

The Chair also highlighted that the Committee found that the main cause of weakness was the setup of the project team by the Ministry of Civil Service, which consists of contractors and civil servants with poor coordination among the civil servants, leading them to a low level of accountability.

He says they also found that the Ministry of Civil Service couldn't be able to manage the kind of or the level of funding of that nature of around $10 million.

Emmanuel says those involved have been referred to FICAC for investigation.

Opposition MP Alvick Maharaj says the initial budget for this particular event was $19 million, and it was then revised to $10 million, but the actual amount that was used was $10.9 million.

He says one of the benefits of the meeting was that they secured some interest-free loans as we went into the COVID-19.

However, Maharaj also called for further investigations into how the funds were used as the Report highlighted some disturbing issues of mismanagement.

Deputy Prime Minister and Minister for Trade Manoa Kamikamica says the issue here is how our partner, the Asian Development Bank, will see us in terms of the mismanagement of the funds they provided for the meeting.

He says this is something we need to resolve, and those involved should be taken to task.

Deputy Prime Minister and Minister for Finance Professor Biman Prasad says it’s great that this issue has been publicised in Parliament as he had been talking about this when they were in Opposition.

He says the forward-looking procurement approach is essential to ensure that government processes are executed with the utmost integrity and efficiency.

Professor Prasad assured Parliament that the Ministry of Finance is taking a very proactive and comprehensive approach to address these issues.

Meanwhile, the Speaker Ratu Naiqama Lalabalavu invoked Standing Orders 20 to refer the matter to the Sub-committee on Public Accounts to investigate further.