The International Rugby Board has confirmed that it will suspend all direct financial support to the Fiji Rugby Union with immediate effect until the Union adopts key financial reporting, administration and governance reforms.
In a statement on the IRB official website this decision was made after FRU failed to implement recommended measures to provide assurances to the IRB that it was appropriately moving to address significant concerns regarding the administration and governance of the Union.
The recommendations arose from an IRB Major Union Review which was conducted after the Union requested emergency financial assistance in May last year.
IRB has also expressed concerns that the financial position of FRU is unsustainable and could create instability and impact on key IRB-funded development and high performance programmes.
The IRB committed FJ$3.3 million in direct funding to the FRU in 2013 and significant additional financial assistance to participate in international tournaments.
However, IRB has confirmed that it will remain committed to Rugby in Fiji and will work closely with the FRU to ensure that all administration and governance reforms are delivered and funding is reinstated.
Meanwhile, the Fiji Rugby Union is yet to confirm whether Fiji will still participate in the Las Vegas and NZ 7s tournaments which are just weeks away.
However in a statement in the last hour, it said that in October 2013 the current FRU Board welcomed an IRB audit which was delayed twice by the previous management.
It said all issues highlighted will be addressed by May this year.
Acting CEO of the Fiji Rugby Union and Director, Doctor Berlin Kafoa said the IRB audit letter and report was received by FRU last month.
Doctor Kafoa said the IRB audit report highlighted financial, administration and governance issues that this current Board is working hard to complete before re-engaging with IRB.
He said to date the FRU has completed the FRU constitution review, put in place both Finance and Human Resources procedures and policies in line with current accepted standards of practice as recommended in the IRB report.
Doctor Kafoa stresses that all these issues were inherited by the current FRU Board and the Board expects to clear up all these issues by end of May 2014.
The FRU said it acknowledges IRB’s funding towards FRU in previous years.
However, Doctor Kafoa said it is important to note that funding from IRB to FRU is also taken out from the IRB Grant allocated for Fiji’s Rugby World Cup 2015.
He said to date FRU has utilized 200,000 of the 250,000 pounds leaving a balance of only 50,000 pounds towards the World Cup 2015 preparations.
Doctor Kafoa also said the FRU Board will only ask for the further funding from IRB only if absolutely necessary or not at all and reserve this funding for Fiji’s World Cup preparations.
The FRU board said to alleviate the financial crisis the FRU Board is currently working on fundraising activities, approaching several sponsors and the Fijian Government through the Fiji Sports Commission to assist FRU.
The FRU Board is also currently working on a long term solution towards financial sustainability of the institution.
The new FRU sponsors are also expected to be announced next week.
Doctor Kafoa stresses that the FRU Board aims to make FRU a financial stable and sustainable institution with accepted standards of practice which include Finance, Human Resources, Governance and administration, with minimal dependency on grants.
We have also sent questions to the IRB.
Stay with us for developments.
Story by: Vijay Narayan & Aliki Bai
