Irregular payments exposed in Post Fiji audit report
The Finance Ministry Internal audit report reveals a number of contracts being issued by some former senior Post Fiji managers without following the proper tender process, and at times tenders were issued to companies that had put in a higher tender and were not recommended by the Evaluating Committee.
It said from 2005 to 2006, Post Fiji purchased a total of 3.292 million dollars worth of stationary from one company, and most of these purchases were not subjected to the proper and transparent tender process required under the company's procurement policy.
It has also been revealed by the audit team that the evaluating committee recommended Abacus Graphics Limited to get a tender for 147 thousand 395 dollars for the supply and installation of steel pallet racking. However a manager submitted a proposal to a higher ranking official with a quotation from the company that supplies stationary to Post Fiji, and it was awarded to that company for 257 thousand dollars. In this case the approval of the Tender Board was not sought because the amount was above the higher ranking official's limit of 100 thousand dollars.
Concerns have also been raised in the audit report about the terms of contract of senior executives which were not approved by the Higher Salaries Commission. Under their contracts, the senior manager’s company vehicles used by them are transferred to their names after 5 years without charge, on zero written down value.
The audit states that the practice is unique to Post Fiji.
A high degree of nepotism was also being practiced by the senior executives of Post Fiji Limited. The Finance Ministry audit reveals that personnel records show that relatives including wives, sons, brothers, nephews, even girlfriends were appointed to various positions.
The report also highlights that in 2004, an amount of $84,375 was paid to a well known retail outlet for the purchase and installation of an exterior Seiko clock at the General Post Office in Suva. The audit team also states that they have correspondence that shows that a senior board member who is also connected to the retail outlet was allegedly involved in discussions regarding the purchase. In addition, the former senior company board member was paid hotel, accommodation and incidental allowances totalling 30 thousand 537 dollars, to which he was not entitled.
Former Chairman of Post Fiji Limited Mahendra Patel will take legal action in relation to the allegations leveled against him in the Internal Audit Unit report.
Speaking to Village News, Patel's Lawyer Hamendra Nagin said his client's named has been tarnished by the unsubstantiated claims in the Audit report.
Meanwhile Peni Mau, who was the Managing Director of Post Fiji at the time highlighted in the report, is yet to comment on the matter.
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