RFMF engineers did not engage subcontractors “in an open and transparent manner” for the $5.2 million Rotuma Hospital Phase 2 Project, the Auditor-General stated in his 2019 Audit Report on General Administration Sector.

RFMF engineers entered into an agreement with the Ministry of Health in 2017 to carry out construction project and auditors found a number of anomalies.

“A total of $1,163,637 was paid to the subcontractors during the financial year,” stated the Auditor-General.

“For every progressive claim of works completed by the subcontractors, it was noted that progressive payment certificates or progressive inspection reports were not prepared by the Works Department to certify the correctness of payments and the satisfactory completion of progressive claims in accordance with the agreed scope of works.

“The subcontractors were not engaged in an open and transparent manner. Although the waiver of tender covered the subcontracted works, we were not able to ascertain whether an internal tender or competitive quotation process was followed to select the subcontractors engaged, as relevant documentations were not provided for audit.”

The Auditor-General stated subcontractors should be engaged in an open and transparent manner so that the interest of Government was protected by ensuring that contractual agreements involving the RFMF were vetted by the Solicitor-General’s (SG) Office.

RFMF engineers stated they would ensure progressive payment certificates were issued for all the progressive claims of work received from them.

“All quotes received were vetted by the RFMF Engineers Works Committee before a selection was made.

“In the future, all market research will be made in writing and the minutes of the works committee discussion will be formalised.

“All contracts will be vetted by the SG’s office and due diligence on company details will be undertaken.