THE Fiji National University incurred losses of almost $10million on the defunct Naiyaca Campus in Labasa in 2024.
The $9.9m loss recorded in the FNU annual report 2024 adds to the growing amount of taxpayer funds used on the project that began in 2013 when it was initially estimated to cost $30m.
Now, almost 12 years later and millions down the drain, the FNU council has decided to demolish the foundations laid out during the initial civil works of the project.
This was all revealed in Parliament by Education Minister Aseri Radrodro who pointed out the many financial anomalies recorded in an independent audit.
“Following due diligence from three independent engineering reports in March, 2025, the council resolved to demolish the structure due to its unsafe conditions and structural failures,” said Mr Radrodro.
“Consequently, the university recognised the following impairment changes in its financial statements for the financial year end of December 31, 2024.
He said 7.6m was recognised in profit or loss, $2.3m was recognised in profit/loss.
“Furthermore, as of December 31, 2024, the liability in relation to capitalised costs incurred to date funded by the Government was transferred from deferred income to trade and other payables in line with the grant agreement and remaining work in progress in relation to this project totalled $4.3million which represent the civil works performed to date.”
Despite the losses, Mr Radrodro said the project would go ahead with 2027 earmarked for the opening of the campus.
“The management and the council of the FNU have strengthened the oversight of their capital project and continue to monitor and evacuate all ongoing capital investments to ensure sound governance, accurate evaluations and robust risk management.
“On July 16, 2025, the FNU council considered a paper detailing the progress of the capital works of the Naiyaca Campus.
“The council approved the revised draft strategic plan and endorsed the next steps required to advance the project.
“The FNU council is collaborating with the Ministry of Works to formalise the terms of reference and is expected to soon call for public tender for the design of the project.
“The university has set an ambitious goal to complete construction for classes to commence at the Naiyaca Campus by 2027 semester 1.”