Over 200,000 Walesi boxes distributed at significant public costs were outdated in 2016 – Kamikamica

The latest Walesi audit report confirms that over 200,000 Walesi boxes distributed at significant public costs were outdated in 2016.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.