The Fiji Rugby Union is now caught in a major legal situation, and Minister for Justice, Siromi Turaga will now move to protect the assets and operations of the FRU, appoint interim trustees of the FRU to take it to a Special General Meeting and appoint an interim administrator to act on behalf of the interim trustees.
Turaga confirms that as Minister for Justice, he exercised his powers under the Charitable Trusts Act in his meeting with the board of directors of the FRU.
He says the FRU cannot operate as a charitable trust as it is being run by a board using articles of association of the FRU Company.
Turaga says this is illegal for charitable trusts.
Following a meeting with the FRU board of directors, Turaga says those in attendance have acknowledged by consensus to resign voluntarily while absent directors will resign by flying minute.
He says there is no link between the Fiji Rugby Football Union Trust Board (the charitable trust) and the Fiji Rugby Union Pte Limited (the company limited by guarantees) for the governing instrument of one to apply to the other, and vice-versa.
Turaga further says the 2018 constitution being used by the FRU board to make appointments to run its affairs, set the AGM, call for nominations, defend appeals by Suva, Naitasiri and Namosi, and operate thus far is not registered under the Charitable Trust Act, nor at the Registry of Titles, and is therefore illegal.
He says this is due to the fact that it was unsigned and undated by the trustees, unaccompanied by the minutes of the meeting of the AGM or Special General Meeting of the FRU wherein the constitution was adopted, not witnessed, signed and stamped by any Commissioner of Oaths or solicitor, and not endorsed, signed and stamped by the Registrar of Titles at the time it was lodged for registration.
The Minister for Justice says in light of these anomalies, he informed the FRU board that under the laws of Fiji, the FRU will need to regularise and legalise its status as a charitable trust to be consistent with the provisions of the Charitable Trusts Act, until and unless the status of the FRU as a charitable body is regularised, the FRU AGM cannot be convened, unions and members of the FRU will have to be notified of the new AGM date by a new board of trustees in due course and the AGM planned for this Saturday has to be deferred.
Acting FRU Chair, Dan Whippy and Acting CEO, Sale Sorovaki could not be reached for comments.
The Fiji Rugby Union remains tight-lipped after confirmation that the FRU AGM scheduled for this Saturday has been deferred to a later date.
Some of the board members and Acting CEO, Sale Sorovaki had meetings with Attorney General, Siromi Turaga and Solicitor General, Ropate Green Lomavatu yesterday.
We are trying to get comments from Rugby House. It has been confirmed that the FRU is registered as a charitable trust and one of the trustees is the Prime Minister, Sitiveni Rabuka. He has been the trustee since 1998.
The Suva Rugby Union had earlier filed a motion for the FRU board members, excluding the Prime Minister’s nominee, to step down.
They had said the motion is based on the current board members’ inability to fund the affairs of the FRU properly.
The present FRU board members include Daniel Whippy, Trevor Nainoca, Muni Ratna, and Biu Colati while Simione Valenitabua is Prime Minister Sitiveni Rabuka’s nominee to the FRU.
The FRU has reported a financial loss of $1.354 million for the financial year 2022, compared to a profit of $269,554 in 2021.
Sorovaki says in the annual report that their revenue increased to $21.356 million in 2022 compared $12.941 million in 2021, however, their expenses increased from $12.671 million in 2021 to $22.711 million in 2022 resulting in their financial position.
Sorovaki highlighted the absence of sponsors for their U-20 Program cost them $400,000, losses in domestic competition due to reduced sponsorship of $500,000 and under collection from the budgeted income by $4.6 million also contributed to their financial performance.
Sorovaki also says the financial performance was further impacted by the booking of all outstanding expenses from 2019 to 2022 that were not booked for payments.
He adds these have now been included rightfully, so that the debt could be recorded for and payment plans implemented as they look to improve their income.
Sorovaki also highlighted that during the year, three finance personnel had to be let go because of breach of financial policies.
He says their new Finance Manager started from mid-October last year and since then new staff have been recruited, and the finance department is undergoing restructuring.
Serious concerns were also raised last week about the welfare of the Fijiana Drua after a post went viral on social media saying the players had been denied their meals at a restaurant in Australia.
A woman in a post on Facebook says she had to provide meals for the Fijiana Drua since last Friday afternoon.
The post also claimed that the FRU has allegedly been late in their payments to the restaurant in Brisbane.
Sorovaki has admitted that they have had some challenges regarding their financial processes which had a direct effect on the Rooster Chicken Fijiana Drua.
Sorovaki says these have been highlighted to them by the Australian Department for Foreign Affairs and Trade (DFAT) through Rugby Australia which monitors this financial assistance, and FRU is trying its utmost to improve on it.
Sorovaki says they are grateful to the Australian Government through the Vuvale Partnership which allows our Fijiana Drua Women’s Team to participate in the Super W Competition.
He also says the FRU is eternally grateful to the Fijian families that have assisted the Fijiana Drua with meals and other support, and for using their own hard-earned resources to help in the time of need towards our players and management. Sorovaki says the FRU may not be able to repay them, however, they are deeply grateful for the kind gesture and support to the fellow Fijians at a time when they needed it the most.
The Acting FRU CEO says moving forward, Fiji Rugby and Rugby Australia will continue to work hand in hand in ensuring that this issue is not repeated.
He adds with the World Rugby Commitment to player welfare, they will ensure that their players' welfare remains paramount in all that they do. Sorovaki also says FRU is responsible for looking over the general logistics of any team travelling overseas.
These include players allowance, accommodation, meals and any other associated costs.
Sorovaki also makes it clear that all contracted players have been paid up until now.
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