A special FICAC taskforce has started its investigation into Walesi today after FICAC received the audited reports on Walesi from Deputy Prime Minister Manoa Kamikamica this morning.
FICAC says the report has been registered in the Case Management System and like all other complaints and referrals, they will treat this matter with the utmost priority and nevertheless follow the due processes and procedures of the Commission.
They say the report comprises two sections: a Technical Assessment of Fiji’s Digital Television Transmission Setup and a Special Audit on Walesi’s Financial Management and Government.
FICAC Commissioner Barbara Malimali has appointed a special taskforce to investigate the matter given that the Special Audit Report by the Office of Auditor General has identified that the Government disbursed a total of $123.6 million for the Digital Terrestrial Television (DTT) Project and for the operations of Walesi PTE LTD from 2015 to 2022.
FICAC says it is a case of national interest which was presented to Parliament during Deputy Prime Minister and Minister for Trade, Co-operatives, Micro, Small and Medium Enterprises and Communications Manoa Kamikamica’s Ministerial Statement on the Walesi Technical and Financial Investigation.
Malimali has directed the special taskforce led by Assistant Manager Investigation – Economic Crimes Unit Alifereti Wakanivesi to commence investigations today.
Wednesday 04/12/2024
The latest Walesi audit report confirms that over 200,000 Walesi boxes distributed at significant public costs were outdated in 2016.
Deputy Prime Minister and Minister for Communications, Manoa Kamikamica says despite the global standard in 2016, pointing to the transition to more modern technology, the H-265 HEVC codec, the network instead utilized H-264 codec.
Kamikamica says this was an absolute waste of public funds.
He says there was no sustainable operating model for Walesi.
Kamikamica says the report to be referred to FICAC highlights fiscal irresponsibility, poor governance and outright waste.
He says from 2015 to 2022 in December, the then FijiFirst Government disbursed a staggering $123.6 million to Walesi.
The Deputy Prime Minister says despite this massive investment, the company has remained heavily reliant on government funding, due to its inability to generate sufficient revenue.
He says ten payments totaling $9.3 million could not be substantiated, as relevant documentation was missing.
The report says this lack of records made it impossible to confirm whether these payments complied with the fund's intended purpose over legal requirements.
He says as reported by the report, an analysis based on the purchase of inventory and additions to property, plant and equipment between 2015 and 2022 indicates that project costs exceeded $70 million.
Kamikamica highlighted that the procurement regulations were routinely ignored.
He says in fact, there was never a tender on anything in Walesi.
The Deputy Prime Minister says high-value contracts, including a $3.6 million project management contract, were awarded without tendering.
He says in fact, the tenders were waived.
The report says there was no evidence to indicate the projects were properly monitored, as there was no documentation provided during the audit.
He says on top of this, $2.2 million of red flow batteries purchased for backup power were discarded due to improper storage, are shocking wastage of taxpayers' money.
Kamikamica says Walesi was operating without a strategic plan for years, basic policies, including risk management and procurement, frameworks, were either absent or incomplete.
The financials for Walesi were totally delayed, which is again an indictment on this whole affair.
The audit revealed significant gaps in the legal framework governing Walesi.
Kamikamica says the report found that the 100 percent government owned company was not even covered under the Public Enterprises Act, further weakening oversight mechanisms and accounting structures.
He says these findings suggest a high level of mismanagement and waste and, in addition, potential breaches of the law. Kamikamica says any evidence of abuse, misrepresentation or fraudulent activity will be pursued to the fullest extent of the law.
He adds a transparent fee structure will be introduced in due course, together with the review of the Telecommunications Act of Fiji.
The Deputy Prime Minister says this will hopefully create revenue streams that support Walesi’s operations while keeping services affordable for all Fijians.
He says in his estimate, based on the figures and the numbers that he has presented, $80 million, or at least 68 percent of the spending to 2022 can be considered as wastage and abuse by the previous government.
Kamikamica says they could have used this money for hospitals, roads, and bridges.
Deputy Prime Minister and Minister for Communications, Manoa Kamikamica confirms that the Walesi technical and financial findings will be handed over to FICAC for further investigation.
While speaking in parliament on the Walesi report, Kamikamica says he is reporting the matter to FICAC due to the high level of mismanagement, waste, and potential breaches, where $80 million or about 68 percent of the spend on Walesi in 2022 can be considered waste and abuse.
He reveals that a total of $9.3 million could not be substantiated, as relevant documentation was missing.
Kamikamica says this lack of record made it impossible to confirm whether these payments complied with the fund's intended purpose and the audit was also unable to identify the actual cost of the project against the budget.
Kamikamica says it’s a disgrace and the people of this nation deserve better than the hollow records they have left behind and under the guise of modernisation, they pursued an agenda of control.
He says the now repealed Media Industry Development Act is a testament to this.
He says there was mismanagement of public funds from 2015 to 2022 in December, where the then government disbursed a staggering $123.6 million to wireless transmission.
He says there was no budget.
The Deputy Prime Minister says Walesi has failed to obtain the necessary operating and spectrum licences for its operations - it was operating illegally and forced families earning over $30,000 to purchase proprietary services which are supposedly free-to-air services.
He says the network was implemented using a multi-frequency network, a model which has significantly higher operational costs compared to the more efficient single-frequency network which is recognised globally for providing better coverage and cost efficiency.
Kamikamica further says the special audit or the financial audit into wireless operations paints a very bleak picture, one of fiscal irresponsibility, poor governance and outright waste.
He says the 100 percent government-owned company was not even covered under the Public Enterprises Act, further weakening oversight mechanisms and accounting structures.
He says the findings of these investigations are a sad indictment of the previous regime.
Kamikamica adds that the money wasted could have been used for hospitals, roads and bridges.
Opposition MP, Faiyaz Koya told Kamikamica to send the report for investigation.
Koya reminded the Minister that Walesi has provided free digital television service to all Fijians and as of March 2023 it has reached out to 90 percent of Fijians.
He says this allows rural and outer island areas more access to television.
Meanwhile, Opposition MP Aliki Bia says the findings have been clearly articulated and he is looking forward to the progress of the investigation.
The technical assessment was conducted with the assistance of the International Telecommunication Union and the engagement of an international expert in digital terrestrial television who has uncovered systemic flaws in the design and implementation of Walesi's digital television network.
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