In 1988 the Suva City Council was grappling with financial difficulties and were exploring the cost to allocate up to $169,000 for accounting services to restructure its operations.
In an article published on Monday, April 6, 1998, The Fiji Times reported that SCC was awaiting a decision from the Economic and Social Commission for Asia and the Pacific (ESCAP) on potential funding that could provide free consultancy for the restructuring project.
The previous year the council had interviewed several local firms for the restructuring job.
According to the article, the contenders included Coopers & Lybrand, Arthur Andersen, Maxumise Fiji, and a team led by former Speaker of the House, Sir Vijay Singh and ex-VAT Unit head Malakai Tadulala.
Coopers & Lybrand initially proposed a fee of $215,600 but had since revised it to $169,000 for 154 days of service.
Arthur Andersen offered $149,553 for 121 days, Maxumise Fiji proposed $75,000 for 75 days, and Price Waterhouse bid $65,698.
Former Lord Mayor Dhansukh Lal Bhika emphasised the urgency of restructuring, noting that the council was facing significant financial strain, management disputes, and other operational issues over the past five months.
“It is now five months since we have experienced the brunt of the crisis which we are all aware of,” said Mr Bhika.
“The council has been riddled with financial problems, arguments between senior management and the councillors, outstanding arrears, trouble with unions and vacant real estate properties.”
The article stated the council’s financial troubles included unsuccessful attempts to secure a $1million loan from the Fiji National Provident Fund in 1997 last year and a current request for a $5million interest-free loan from the government.
The then Local Government Minister Vilisoni Cagimaivel hadn’t received a proposal for the latter loan during the time this article was published.
Mr Bhika said the restructuring was part of the council’s broader efforts to achieve a more “affordable and sustainable level of operation” amid the ongoing financial and administrative challenges that year.
