The 14 provincial councils have come under fire after a review of their financial statements revealed consistent audit failures spanning more than a decade.
The Report of the Auditor-General of the Republic of Fiji on the financial statements for the 14 Provincial Councils from December 31, 2013 to the year ended at December 31, 2015, Volumes 4, 5 and 6 were tabled in Parliament last week. A total of 42 reports were audited from the collective provincial councils.
The report showed all 42 financial statements from the councils received “disclaimer of opinions” — the worst possible audit rating.
“This isn’t new. It’s been happening since 2000 and appears to be continuing in accounts up to 2022, possibly even 2024,” said Standing Committee member and Assistant Minister of Finance Esrom Immanuel.
“This level of opinion reflects either fraud and misuse of funds or a failure in leadership and systems.”
The disclaimer of opinion stems from poor record-keeping, lack of disclosure, and transactions that auditors could not verify due to limitations in scope.
The report stressed that this pattern must not be allowed to continue and called for forensic audits and leadership accountability.
“Organisations with this level of opinion must be investigated, leaders must be changed if they cannot meet the standards,” Mr Immanuel said.
The iTaukei Affairs Board and chairpersons of all provincial councils have been urged to immediately implement audit recommendations and improve financial reporting standards.
The report has now been handed to Parliament, with a motion to schedule a full debate at a later date.
The committee also thanked the Auditor-General’s Office for its unbiased reporting and warned that unless urgent reforms are made, the credibility of public institutions will remain under serious threat.
