THE Auditor-General has raised concerns over the Bua Provincial Council’s decision to transfer rental income from its properties to a company in which it currently holds no shares.
This is stated in the Audit Report on Provincial Councils – Volume 7, which was tabled in Parliament last week.
“The council resolved in a council meeting on October 8, 2019, to form a company to manage its rental properties, which included the Naulumatua House and Rest House,” the report stated. The company was registered on February 19, 2021.
“From January 1, 2022, the rental income received by the council from these properties was transferred to the bank account of this company.”
A company search revealed “that the council has no shareholding in the company,” with three directors appointed during the Bua Provincial Council Bose Ni Yasana meeting on November 19, 2020.
Further audit clarification noted “the status is at the transitionary phase and the Asset Transfer contract is currently being worked on”.
“Once the asset transfer process is finalised, the asset value will become the shareholding interest of the Bua Provincial Council in the company.” The Auditor-General warned that “due to the absence of the council’s shareholding in the company, the council’s legal relationship with this company could not be established”.