Walesi, a $123.6 Million Investment Flaw

Government had disbursed a staggering $123.6 million to Walesi from 2015 to December 2022.

Despite this massive investment, the company remained heavily reliant on government funding due to its inability to generate sufficient revenue.

Deputy Prime Minister and Minister for Communication Manoa Kamikamica revealed this in Parliament yesterday while delivering his ministerial statement.

“Ten payments totalling $9.3m could not be substantiated, as relevant documentation was missing,” Mr Kamikamica said.

“This lack of records made it impossible to confirm whether these payments complied with the fund’s intended purpose or legal requirements.”

Mr Kamikamica informed Parliament that the audit was unable to definitively determine the total actual cost of the project against the budget due to the absence of a project closure report detailing the breakdown of the actual costs incurred.

However, an analysis based on the purchase of inventories and additions to property, plants and equipment (PPE) between 2015 and 2022 indicated that the project cost exceeded $70m.

Wastage

Mr Kamikamica said based on these figures at least $80m can be considered wastage or 68 per cent of what was spent until 2022.

“Just imagine how many hospitals, roads and bridges could have been constructed using these funds,” he said.

“Procurement regulations were routinely ignored, high-value contracts, including a $3.6m project management contract, were awarded without tendering.

“The project manager for the DTTV (Digital Terrestrial Television) project and was paid approximately $3.6m during the duration of the engagement.”

FICAC Referral

The finding of the investigation was forwarded to the Fiji Independent Commission Against Corruption (FICAC) for further investigation yesterday.

“Worse still, $2.2m worth of red-flow batteries, purchased for backup power, were discarded due to improper storage, a shocking waste of taxpayer money,” Mr Kamikamica said.

“The findings of these investigations highlight not only severe mismanagement and waste but also potential breaches of law.

“As such, this government will not stand idly by.”

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