Ways & Means.

Fiji Sun's Wednesday May 2nd issue published details into the alleged misappropriations conducted by the former CEO of Fiji Sports Council.

Sports council funds abused- Audit report reveals shocking practices
By CHEERIEANN WILSON

Abuse of funds, properties and employees were the highlights of the Special Investigation report conducted on the Fiji Sports Council.
The 68-page report obtained by the Fiji Sun yesterday called on former FSC chief executive officer Alice Tabete to explain, produce receipts and evidence of financial discrepancies during her term as CEO. Failure to do that, the investigation team from the Ministry of Finance has strongly recommended that the matter be reported to police.

The report revealed that;

• Mrs Tabete blatantly disregarded Instruction 20.34 of the FSC finance manual, that a credit card reconciliation from sales dockets and receipts shall be submitted with the monthly bank statements to the manager accounts by the credit card holder for verification and expensing to the appropriate account.
  
  She was using the official ANZ Visa card account number 4999-6400-0006-5316 for purchase of goods and services. It could not be established as to what sort of procurements she made. From January 14, 1999 to February 14, 2005 she failed to produce receipts for the amount of $24,798.21 paid on her behalf.
  
  
• It was noted that the insurance of Mrs Tabete”s two private vehicles; Toyota Camry registration DV732 and DI747 were paid from the Council funds while she received insurance allowance of $1500per annum.
  
  
• While she was paid the car allowance of $8000 a year from February 26, 2002 to August 26, 2005, Mrs Tabete continued to use Council vehicle for her private use.
  
  
• The Council workers confirmed in writing that some used and unused items were taken by them to Bau Island for use at the Chief Executive Officer”s parents house during repair and maintenance work just before the Methodist Church annual conference, last year.
  
  Details of items taken to Bau Island on August 6, 2006; used roofing iron, five toilet cisterns, urinal tank, August 9, 2006; new roofing irons and August 17, 2006; Clothing and posts for decoration.
  
  Vehicle registration EV870 was used in the delivery. A 10,000 litre water tank and a flat pump from FSC were taken and installed at the CEO’s house in Delainavesi. Other work such as plumbing, painting and electrical work were carried out by FSC employees.
  
  In 2006, the employees were used to construct a wooden master bedroom in the garage to accommodate Mrs Tabete’s sick husband. Also, repairing of roof, flooring's, painting, plumbing and electrical works was done at Savai Place. A double gate from FSC was repaired and fitted at Savai Place with a 10,000 litre water tank valued at $2200.
  
  
• Payment of wages for Fiji Sports Council workers who were working at the Mrs Tabete’s private residence. The inspection of records showed that nine employees were engaged by Mrs Tabete at her private residence at Bau Island, Savai Place and Delainavesi on a number of days and their wages were met from the Council’s account. A total payment of $1563.88 was made to the workers.
  
  
• Irregularities were noted on the salaries paid to Mrs Tabete. In the year 2006 about 16.6per cent of the chief executive officer’s salary or $9147.10 were being paid as non taxable allowance in an effort to evade tax on personnel emoluments.
  
  Salary- $55,093.00per annum.
  Fortnightly payable- $2118;
  Fortnightly paid- $1767.15 x 2= $45,945.90pa;
  $55,093- $45,945.90 = $9147.10.
  Audit noted that $9147.10 that should be paid as salary and subject to PAYE tax was instead paid separately as allowance to evade tax.
  
  The breakdown of $9147.10 paid, as allowance are as follows:
  
  monthly allowance payable $1291.67 less monthly allowance paid inclusive of part of the salary of $1652.07= $360.40 multiply by 12 months = $4,324.80 salary component paid as allowance.
  
  January payment of allowance, i.e $6474.32= monthly allowance $1652.07 + $4822.25.
  
  Actual salary component paid as allowance in 2006- $4324.80 + $4822.25= $9147.05.

An [unnamed] woman that answered the phone from Mrs Tabete’s home last night wanted to know the reason for our call. When told that we wanted to get her response on the Council findings, she indicated that first she needed to know whether Mrs Tabete was at home. After several calls were made, we were told that Mrs Tabete was in church. Earlier last month, the Fiji Sun team was turned away from her Delainavesi residence several times, as we tried to get her comments on the issue.

Interim Minister for Youth and Sports Lekh Ram Vayeshnoi said the FSC report is now with the Anti- Corruption Unit. “They will expedite the necessary action to take following the result of the report,” [Vayeshnoi] said.

Head of the Anti- Corruption Unit, Nasir Ali said he was [personally] on leave and could not comment on the matter. Acting Commissioner of the Fiji Independent Commission Against Corruption, Captain Esala Teleni was not available for comment.

It is interesting to point out that, Fiji Live reports a similar call for accountability, this was referring to questions tabled during the November 30th, 2006 sitting of Fiji Parliament. Also the Auditor Generals 2003 report(PDF), does provide other background information on discrepancies in Government accounts.

This is a micro-excerpt of the OAG report:

Capital Grants
The Ministry signed an agreement with the Fiji Sports Council on 22/10/1998 outlining the conditions for the utilisation of Capital grants for the infrastructures and facilities for the South
Pacific Games 2003.
Provision 4.1 of the agreement7 provides that the State through the Ministry pays an annual grant of an amount not exceeding $2 million per annum over a five (5) year period with effect from 1/1/1998 to 31/12/2003, hence totalling $10 million.
A Cabinet Decision [CP (98) 348] approved a further allocation of $1.75 million in 1998 over and above the $10 million.
Reasons for the increase in grant were as follows:

• There were indications of lobbying during the SPG Facilities Development Committees
  meetings;
  
• The project was running behind schedule in 2000;
  
• Market prices of materials and contractors changed, prompting a review of the annual grant budget for the five years to $16.8 million.
  

Total Grant given by the Ministry since 1998 was as follows:

Year	Grant($M)
1998	2.0
1999	-
2000	4.0
2001	3.5
2002	5.2
2003	2.2
Total	16.6

Capital grant of $5,114,500 was given to the Fiji Sports Council in May 2002. The breakdown of the grant was as follows:

Laucala Bay Services	$1,135,879.33
Bidesi Park	10,000.00
Multi Purpose Sports Facilities- Construction Contract Supervisors	330,000.00
Multi Purpose Sports Facilities-Contingency for additional requirements by Fiji Govt)	200,000.00
Multi Purpose Sports Facilities-Costs incurred (Tax Exemption/ Customs Duties)	300,000.00
Covered Training Facility- Indian College	200,000.00
Multi Purpose Courts	1,000,000.00
National Stadium- Portion 2	375,000.00
National Stadium Athletics	150,000.00
Albert Park	50,000.00
Baseball Grounds	400,000.00
National Stadium Car park	666,134.67
Victoria Courts	297,486.00
Total	$5,114,500.00

As at 31/12/02, total Capital grant given by the Ministry for the project amounted to $14.6 million. Total payments made as per acquittals as at 31/12/02 was $12,015,207.46. The percentage of work completed for the project as at 31/12/02 was not sighted during audit. The total cost of the project in 2002 amounted to $6,607,013.79. This constitutes the following:

• Total payments for projects included in the 2002 work programme $1,976,780.44
  
• Total payments for existing and post 2002 work programme $4,630,233.35
  

Failing to amend the relevant provisions, the Ministry has breached the agreement. Accountability and transparency in expending public funds cannot be ruled out since the provision of the annual grants was not amended accordingly.

The Fiji Sports Council has not submitted its accounts to this House. In fact, it has not submitted its accounts to this House since 1992, despite a specific requirement in the Act, requiring the Minister responsible to table the accounts and the Annual Report of Fiji Sports Council[...]

It is no use telling us here that we go to the Police or the agencies, when you are holding all the documents and know what happened to the money. I think it is about time that this matter is honestly dealt with in this House, because a lot of money has gone into the wrong hands and we all know that.

The Daily Hansard of those deliberations is available from the Fiji Parliament website.

The following is an excerpt:

Financial Assistance - 2003 South Pacific Games (Question No. 66/06)


HON. M.P. CHAUDHRY asked the Government, upon notice:


Would the honourable Minister for Finance and National Planning inform the House on the following:-

1. The total amount of financial assistance given by the Government from the consolidated fund for the hosting of the South Pacific Games (SPG) in Suva in July 2003;
   
2. Name the organisations which received the financial assistance and state the amount paid to each of them;
   
3. Have the accounts of the SPG been audited and if so, by whom;
   
4. Why have the accounts not been tabled in this House some three years after the Games were held, and who is responsible for this inordinate delay; and
   
5. Will the Government consider instituting independent investigation into the serious allegations of fraud, corruption and misappropriation in the use of SPG funds made by the former Minister of State for Youth and Sports and widely reported in the news media?

HON. RATU J.Y. KUBUABOLA (Minister for Finance and National Planning).- Mr. Speaker, Sir, I rise to respond to the question as follows:-

1. The total amount of financial assistance given by Government from the consolidated fund for hosting of the South Pacific Games in 2003 was $21,186,998. The breakdown is as follows:-
   
   
   Total infrastructure grant - $17,800,000
   
   SPG Organising Committee - $1,405,000
   
   SPG Security - $475,000
   
   SPG Equipment/Preparation
   
   and participation - $1,130,000
   
   VAT component - $376,33
   
   
   

SPG Organising Committee:

1. Administration - $745,500
   
   
2. Additional provision for games
   
   village capacity building USP - $660,000
   
   Sports Council/Fiji Police Force:
   
   
3. SPG Security - $475,665
   

FASANOC:


1. Equipment/Team Fiji Preparation and Participation - $1,130,000
   
2. The Government grants have been audited through the normal audit by the Auditor-General. The SPG Organising Committee's accounts were audited by KPMG in 2006, while FASANOC was completed in 2004.
   

The accounts have been tabled in this House some three years after the games were held. I wish to mention that the SPG Organising Committee is a limited liability company and there is no requirement for them to table their accounts here, although it was tabled in this House in the last sitting.

The reason for the inordinate delay was mainly because this was a total project, starting from December 2001 to August 2005 and the need to ensure that proper acquittals were done by the committee in relation to grants provided by Government. Also, some of the disposal assets were acquired duty free and they did not wish to have the accounts finalised carrying a huge amount of redundant assets, otherwise there would be continuing accounts to be done and provided by the committee, hence the reason for the delay.

No, but if the honourable Members or others in this august House have any information in relation to these allegations, I would strongly urge that this be directed to the relevant agency.
Mr. Speaker, Sir, I take this opportunity to thank all those who were involved in the preparation and organisation of the SPG, who worked tirelessly in ensuring that the games were successful. Some of them are in this august House today.

Sir, the securing of the games to be held in Fiji was done in 1997. It was not until 2001 that serious work was carried out to ensure that the 2003 SPG was going to be successful. A lot of work was done behind the scenes, especially in securing sponsorship funds and others. As I said, there are those within this House this morning who did a lot of work and I would like to take this opportunity to thank them for that.

HON. M.P. CHAUDHRY.- Mr. Speaker, Sir, the honourable Minister has not answered part (b) of the question, which is very specific; name the organisations, which received the financial assistance and state the amount paid to each of them. The honourable Minister said that $17.8 million was paid out for infrastructure development.

I want to know who did this money go to, $17.8 million is a lot of money and it cannot be passed aside by saying that it was paid for infrastructure development. I believe this money was given to the Fiji Sports Council. The Fiji Sports Council has not submitted its accounts to this House. In fact, it has not submitted its accounts to this House since 1992, despite a specific requirement in the Act, requiring the Minister responsible to table the accounts and the Annual Report of Fiji Sports Council.



HON. I. LEWENIQILA.- You are lying!


HON. M.P. CHAUDHRY.- You are the liar, you were the Minister. Mr. Speaker, Sir, it is specifically provided for in the Fiji Sports Council Act. The nation knows what has happened.

HON. I. LEWENIQILA.- The nation knows about you.


HON. M.P. CHAUDHRY.- Where has the money gone - the $17.8 million? When a Minister who has been dismissed from his Ministerial portfolio, (simply because he wanted to drag the truth of this issue before the public, got wrapped in the knuckle, while the criminals, the people who had abused this money, had corruptly used it and misappropriated it, are now sitting in this House and talking cheeky.

Mr. Speaker, Sir, it is time that these people are exposed and brought before justice because it is time this side of the House report the matter to the Police. They are not going to get away with it.


HON. T. YOUNG.- Mr. Speaker, Sir, a point of order.

HON. M.P. CHAUDHRY.- I have said what I wanted to say, they can raise any point of order.

HON. T. YOUNG.- Mr. Speaker, Sir, I refer to the question that he is asking. He should be asking a supplementary question and not spilling venom in the morning of your Christmas party.

Secondly, imputing improper motive on the former Minister for Youth and Sports. Sir, I think the honourable Member should retract that statement, accusing the honourable Minister of being a liar. The whole of Fiji and the whole world knows who is a liar in this House.

MR. SPEAKER.- I do understand that the honourable Member for Ba Open (M.P. Chaudhry) was asking about the names of the organisations. I do not know whether the honourable Minister for Finance would like to respond to that or not.

HON. RATU J.Y. KUBUABOLA.- Mr. Speaker, Sir, I do not have the names of the organisations, but I do have the breakdown of how the $17.8 million was used and I will be glad to provide the honourable Member with that. As I mentioned, if there are allegations of fraud or corruption, please direct them to the relevant agencies.

HON. M.P. CHAUDHRY.- I find this most extraordinary because this House is accountable to the people of this country and for the honourable Minister for Finance to say that he does not have the names of the organisations, when the question was specifically asked, why did he not bring the name of the organisation to this House? What is he trying to hide? Who is he trying to protect?

It is no use telling us here that we go to the Police or the agencies, when you are holding all the documents and know what happened to the money. I think it is about time that this matter is honestly dealt with in this House, because a lot of money has gone into the wrong hands and we all know that.

Sir, I thank you and since the honourable Minister said that he will provide information on part (b) of the question later on, I would be very happy to receive that from him.

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