$30M university campus project stalled, gutted, and now back on track for 2027

A stalled $30 million campus project by the Fiji National University (FNU) in Labasa, abandoned for years and later declared structurally unsafe, is now being revived with a new completion target of Semester One, 2027.

The ambitious Naiyaca campus was first launched in 2013 under the then Government’s ‘Look North Policy’ but suffered from years of delays, poor oversight, and structural failure.

Minister for Education Aseri Radrodro told Parliament yesterday that the university’s 2024 annual report had highlighted the campus as a “significant event” due to financial impairment.

“In accounting terms, impairment refers to a substantial, unexpected decline in the asset’s recoverable value that requires immediate recognition in financial statements,” he explained.

Millions lost before demolition

The project was initially backed by a mix of Government capital grants and FNU’s own funds.

“Following preliminary civil works, the main construction commenced in 2018, but the project was abandoned in 2019, leading to a significant deterioration of the partially completed structure,” Mr Radrodro said.

Attempts to restart the project in 2020 were postponed due to COVID-19, and a 2021 proposal to repurpose the site never eventuated.

A turning point came in March 2025 when three independent engineering reports concluded the structure was unsafe. The FNU Council resolved to demolish the building.

“Following due diligence and three independent engineering reports in March 2025, the council resolved to demolish the structure due to its unsafe condition and structural failures,” Mr Radrodro said.

The demolition triggered significant financial write-offs:

• $7.6 million in capitalised costs funded by Government was recognised as a loss
• $2.3 million in capitalised costs funded by FNU was also written off

An additional $4.3 million in work-in-progress — mainly civil works — remained on FNU’s books.

“The management and the council of FNU have strengthened oversight of capital projects and continue to monitor and evaluate all ongoing and future capital investments to ensure sound governance, accurate valuation and robust risk management,” the Minister added.

Audit exposes serious failings

In September 2023, the FNU Council engaged KPMG to audit the failed project. The findings were damning.

“The audit identified numerous anomalies; from the initial planning process, the governance structure overseeing the project, the awarding of various tenders, risk assessment and records management, the review and approvement of payments, and managing variations, among other things.”

Among the issues raised were:

• No business case or feasibility study
• Governance concerns — the project committee was dominated by Council members
• Improper influence over tender decisions
• Flawed evaluation of the sole eligible tender
• Poor documentation of scope changes
• Mismanaged payments and lack of oversight
• Unpaid subcontractors and a legal dispute over a performance bond

“Based on the findings of the audit, FNU lodged a formal complaint with FICAC on 31 July 2024, and is currently awaiting the outcome of the investigation,” Mr Radrodro confirmed.

New plan, new council, new oversight

In 2023, a new university council was appointed and a Project Implementation Monitoring Unit (PIMU) was established to oversee the project’s revival.

On 16 July 2025, the council considered a new plan that includes both Higher Education and Technical and Vocational Education and Training (TVET) facilities on the same site — including Technical and Industrial Curriculum (TIC) workshops.

“I am advised that FNU is collaborating with the Ministry of Works to finalise the terms of reference and is expected to soon call for public tender for the design and construction of the project’s first phase,” he said.

FNU is expected to assess its full capital needs once detailed plans and cost estimates are finalised and may seek support from Government and donor agencies.

“It is crucial that Government-funded projects be monitored closely, and any abuse of taxpayer’s funds be discouraged,” Mr Radrodro said.
“Those implicated in wastage need to be noted and addressed; Subsequently they must not be allowed anywhere near such project management again and must be addressed by the law for such blatant mismanagement.”