The Auditor-General found a board member of Housing Authority of Fiji, who also chaired the tender committee, to have potential conflict of interest because of his professional background in construction.
This is stated in the Housing Authority of Fiji Special Investigation on Lots and Tender Processes report that was tabled in Parliament on Monday.
“There was no evidence to show that the tender committee members declared their interest,” states the OAG report.
“In addition, we found that a board member who also chaired the tender committee was found to have potential conflict of interest due to his professional background in the construction industry. However, there was no evidence to indicate that he declared his interest prior to taking up the role as chairman of the tender committee.”
“We found out that two members of the Tender Evaluation Committee did not sign the tender recommendation. We were not able to establish reasons why the recommendation was not signed by these members.
“We found that a former staff who was an engineer was not an approved member and yet became part of the Tender Evaluation Committee. There was no documentation to show that his appointment on the committee was formally approved.”
The OAG said tender documents for Tacirua, Wainibuku, Matavolivoli, Veikoba and Nepani subdivisions were not provided for review.
“Due to the absence of conflict of interest declarations from the members of the tender committee and evaluation committee, and the fact that potential conflict of interest existed with the chairman of the tender committee, the objectivity of the tender process for Tavakubu subdivision might have been impaired.
“Due to lack of information and documentation for tenders, we could not gather sufficient evidence to conclude whether tenders were awarded in compliance with the Housing Authority tender policy for the development of the residential lots for Tacirua, Wainibuku, Matavolivoli, Veikoba and Nepani subdivisions.”
The authority indicated that all tender documents as per the new tender filing structure, required tender/EOI documents to be stored with corporate governance and has further indicated that conflict of interest forms designed and will be implemented, that will require sign-off by tender committee members and committee chair.
The OAG said there had to be greater accountability and ownership is required for the safe custody of tender documents.
“It is highly recommended that all tender documents are kept in the CEO’s office. The authority should carry out an internal investigation of the tender documents for land development and hold responsible officers accountable.
“The tender policy of 2005 needs to be reviewed and updated with current best practice.”
