Pherrus Report reveals FNRL 'rot'

The Fiji National Rugby League (FNRL) was on the brink of bankruptcy because of an unpaid debt of AU$31,200.82 (FJ$49,146.13) owed to Catapult Sports Pty Limited.

The debt led to a legal wind-up notice, placing the organisation at risk of serious legal action.

The details were outlined in an independent report by Pherrus Financial Services, tabled during the FNRL Annual General Meeting in Suva last Saturday.

The report provided a summary of FNRL’s current financial and governance situation.

The review identified several weaknesses in the management of the organisation, including:

• No clear procedures for approving expenditure or handling funds;
• Poor separation of duties, with the same individuals approving, processing and recording transactions;
• Missing supporting documents such as receipts and invoices;
• Incomplete financial records and poor cash tracking;
• Lack of cooperation from the FNRL office when transaction records were requested; and
• Weak transparency and accountability measures.

The report also confirmed the matter was under investigation by the Fiji Independent Commission Against Corruption (FICAC).

A search warrant was executed on May 13, with FICAC investigators entering FNRL headquarters and removing files that included employment contracts, appointment letters, suspension letters, termination letters and payroll records relating to Akuila Masi, Elesi Ketedromo, Epeli Tagivetaua, Senikau Malata, Josaia Dakuitoga and Waisake Kativerata.

FNPF arrears

The report further revealed that FNRL accumulated a Fiji National Provident Fund (FNPF) debt of $65,795.89 after failing to pay staff and player contributions on time.

The organisation also incurred penalties amounting to $89,277.72.

“It was mentioned that funds were available to cover salaries and FNPF, but they were used for other expenses,” the report stated.

After partial payments, the outstanding amount now stands at $14,499.61.

Unpaid taxes

The report also stated that FNRL failed to pay required tax deductions to the Fiji Revenue and Customs Service (FRCS) despite having funds available.

The organisation accumulated unpaid taxes of $44,855.29 and penalties totalling $22,329.37, bringing the total debt to $67,184.66.

A letter from Fiji National Sports Commission executive chairman Peter Mazey raised concerns regarding the unpaid taxes.

Pherrus Financial Services was appointed as financial adviser in October 2025 and began a financial review, which remains incomplete because of delays in obtaining information.

The firm said several documents, including receipts and invoices, were missing and that there was a lack of cooperation from staff when information was requested.

FNRL chairman Rajesh Singh said he remained committed to transparency and good governance.

“There’s a resolution waiting for our audited accounts. Unfortunately, there was a setback. Ernst and Young accounting firm was ready to start the audit in the third week of March,” he said.

“We still had setbacks from staff not providing documents and all those things. Hopefully, we can get everything sorted and from Monday we’ll take office and speak to the staff.”

Mr Singh said Ernst and Young would begin audits on June 1.

“There are two audits — for the 2023/24 and 2024/25 financial years. Once the audited accounts are ready, we will hold a special general meeting where we will present them,” he said.

Mr Singh said another audited account for the 2026 financial year would also be presented in November.

“The date for the special general meeting will be determined after the audited accounts are completed. Remember, we only took office two months ago. I’m trying to get the audits done for 2023/24 and 2024/25,” he said.

“I cannot confirm exactly, but Ernst and Young says one audit will take about one-and-a-half months and the second audit will take the same amount of time.”

A 21-day notice will be issued under Article 21 of the organisation’s constitution before the special general meeting is held.

“We then have to attach the audited accounts and send them to all the clubs,” Mr Singh said.

“We respect the clubs. There was a lot of confusion out there and a lot of clarification has been done. It’s all about transparency, good governance and accountability.

“Whatever staff or anybody implicated will answer through the proper process. We are just following the law and allowing the process to take its course.”