The High Court has ruled that the National Hosting Authority has not adhered to the Public Financial Management Act 2013 (PFMA 2013) and prescribed processes in expending public funds to host the Pacific Games in the country in 2023. While the two-week event is being deemed as the best and largest ever to be hosted in the South Pacific, since its inception in 1963, the money trail uncovered by the Office of the Auditor General’s contracted Auditors, KPMG Fiji, tells a different story.
The OAG late last year sought clarification from the Courts following a disagreement between NHA and the OAG, over which laws were applicable for expending public funds from the Sports Solomons Fund, for the Pacific Games in 2023. The OAG had pointed out that because they were public funds, the PFMA 2013 was applicable in how the funds were being appropriated, expended and managed. However, this was not accepted by the NHA, claiming that the funds were subject to the Pacific Games Act, and appropriated by the Parliament Development Budget of the Office of the Prime Minister and Cabinet, not what the OAG stated.
Some of the declarations and orders made by the High Court when handing down its ruling are as follows:
While the Development Budget of the OPM for 2019 to 2024 were validly appropriated in Parliament for the purpose of the Pacific Games, how it was spent from the Sports Solomons Fund did not comply with sections 25, 57 and 60 of the PFMA 2013.
For auditing purposes, the Accountable Officer of NHA did not have the authority to expend funds from the Sports Solomons Funds for the Pacific Games 2023, including funds from the Advance Warrants made on 4 separate occasions. Expenditure approvals for the funds were without lawful authority.
For auditing purposes, that the Modification Policy (Resolution NHA 03-23-01) purported to authorise the Blanket Waiver of competitive tendering, were beyond the powers of NHA and so the Policy is null and void.
For auditing purposes, the expenditure made pursuant to the blanket waiver aspect of the modification policy was without lawful authority,
– That the Auditor General completes and presents his audit reports on the Pacific Games 2023 to Parliament, through the Speaker in accordance with section 108 (4) of the Constitution, on the basis made by the ruling.
– That NHA and its members respond consistently and cooperatively to the Auditor General to discharge his audit functions in accordance with declarations made in the ruling
Meanwhile the Auditor General David Teika Dennis welcomed the High Court’s ruling, emphasising it’s importance.
“I think it is really important that our audit reports into hosting one of the best ever Pacific Games 2023 have clear findings and learnings. The ruling resolves the applicable legal framework governing the Sports Solomon Fund and how it should be expended and managed, and we very much welcome the rulings. In addition, this sets the precedence for the management and expenditure of all other special funds within Government Ministries and Agencies.
“The Court ruling makes it clear that Special Funds as public money, unless explicitly required otherwise by Parliament must comply with the Public Financial Management Act. It follows from this ruling that all accountable officers of special funds including for Sports Solomon Fund must have a valid warrant to be able to lawfully incur expenditure,” said Auditor General Dennis.
The ruling now ensures that the NHA Audit Report is finalised, released and tabled in Parliament.
