FNU writes off $9.9M after audit exposes major failures in Naiyaca Campus project

The Fiji National University has written off $9.9 million because the Naiyaca Campus project in Labasa could not be salvaged and an independent audit by KPMG has uncovered major issues across project planning, governance, tender processes, risk management, and payments.

This has been confirmed by the Minister for Education Aseri Radrodro who says specific findings included the lack of a business case or feasibility study, conflicts of interest in the project committee, irregularities in tendering, missing governance documents, mismanagement of consultants, and delays that led to contract termination.

He says those implicated in the wastage need to be noted and addressed while Opposition MP Premila Kumar says anyone who did not do their job should be taken to task so there is nothing big about it.

While delivering his ministerial statement in Parliament, Radrodro said the main construction on the $30 million project began in 2018 but was abandoned in 2019 and efforts to return to the project in 2020 were deferred due to the COVID-19 pandemic, and the project was subsequently placed on hold by the Ministry of Education.

He says in October 2021, a repurposing proposal was submitted to the Ministry of Economy to explore alternative uses for the site and at its meeting in June 2022, the University Council resolved to recommence the Naiyaca Campus Project but the expression of interest process for a new Project Manager was unsuccessful.

The Minister says in 2023, a new Council for the University was appointed, and a Project Implementation Monitoring Unit was established to oversee the project’s completion and following due diligence of three independent engineering reports in March 2025, the FNU Council resolved to demolish the structure due to its unsafe condition and structural failures.

Radrodro says a legal dispute over the performance bond also arose and as a result of the findings, FNU lodged a formal complaint with FICAC on 30th July 2024 and is now awaiting the outcome of the investigation.

He says FNU Council approved a revised plan for the Naiyaca Campus in July this year, which will cater to both higher education and TVET, including technical workshop facilities.

Radrodro says the Council is working with the Ministry of Works to finalise terms of reference and will soon call for public tenders for phase one.

He says once planning and cost assessments are complete, FNU may seek government and donor support and the target is to have the campus ready for classes by Semester 1, 2027.

She says FNU rightly terminated the contract in March 2020 after no progress was made since August 2019, despite repeated plans for completion.

The MP says the court upheld this decision on 6 October 2021, confirming the rightful termination and enabling FNU to encash the bond of over $2 million.

Kumar says this was a massive project, and the government did establish and recruit the right people to monitor and look after the project.

She stresses that no money was wasted as the contractor was paid $11.4 million for work completed—amounting to 47 percent of the project—even though payment was made only for 42 percent, due to the disputes and delays.

Kumar adds that he delay in progressing the project has made the structures unusable, but we all understand that if the matter is before the court, you cannot just go and start construction work.