Leaked documents circulated on social media yesterday claim that the Fiji Sports Council’s cash reserves crashed from more than $2million in March 2023 to $32,000 in February 2024.
The documents, circulated by former Fiji Times journalist Charlie Charters on Facebook yesterday afternoon, claim the cash crunch arose when FSC’s payroll costs doubled after a “human resources restructure” initiated in mid-2023.
The “restructure” was allegedly implemented without the approval of the FSC board.
Casual staff costs increased from $480,000 for the first 10 months of 2022 to almost $1.1million for the same period in 2023, the documents show.
The documents allege that by December 2023 FSC board members were refusing to sign FSC cheques because management had not followed their directives to restrict the increased payroll costs. They only agreed to sign cheques “after Minister [for Youth and Sports Jese Saukuru] asked for them to review their decision”.
The FSC board noted that by 30 January 2024 the “huge salary and casual staff increase (caused) losses of over $1million for five months.”
The documents record that FSC management signed a $20million “letter of intent” with a New Zealand company in 2023 to build three sports grounds with artificial turf. The letter did not have board approval.
Concerns were raised by Investment Fiji that the New Zealand company was not financially sound. Council board members then sought legal advice and were told the contract was not valid as the board had not agreed to it. The contract did not go ahead.
“The current cash flow problems and other issues noted would not have occurred if the resolutions of the board had been carried out as expected and mismanagement addressed,” the document says.
“The opportunity is there for a new direction as there is a lot of development under the masterplan put in place by the previous Board for raising long term funds for FSC but requires a chairman who understands property and development and a fully qualified and competent CEO,” the document says.
Mr Charters, who circulated the document, says the board was not told about capital works at FSC’s lawn nursery at Veivadravadra, in Sigatoka, in breach of environmental consents.
He also alleged that FSC had bought motor vehicles with no tender process followed.
The document makes a number of allegations against former FSC chair and now CEO Gilbert Vakalalabure.
Contacted yesterday, Mr Vakalalabure asked for the allegations to be sent to him for response. However, he did not respond to text messages sent to him.
The Fiji Times was unable to reach Sports Minister Jese Saukuru and FSC deputy chairman Peter Mazey for comment.
