A Fiji Roads Authority contractor, Prime Fiji Limited is now under investigation for allegedly using fraudulent performance bonds to get two contracts.
Attorney General Aiyaz Sayed-Khaiyum said the two contracts were worth more than $5 million in total.
These were contracts for village and rural street lighting from Suva to Lautoka and renewing street lighting in certain areas.
Sayed-Khaiyum said the fraudulent performance bonds were discovered by the Fiji Roads Authority and it will now be referred for further investigation.
He said the village street lighting project worth about $2.2 million and the street renewal contract worth about $3.5 million were awarded to Prime Fiji.
Based on this, the successful contractor had to pay performance bond of about $222,000 for the first contract and $351,000 for the second contract.
Sayed-Khaiyum said upon checking by the Fiji Roads Authority, it was discovered that the bonds given to the FRA were fraudulent bonds.
Acting FRA CEO Rory Garland said they have referred the matter to FICAC.
No payments were made by FRA regarding these two new contracts.
FRA board member, Sanjay Kaba said they will also look at other contracts held by the Australian company.
Prime Fiji holds another contract for general street light maintenance.
Kaba said they will also have a board meeting next week to discuss some overpayments to Prime Fiji for some of the contracts.
He said the two new contracts are now on hold and new tenders will be called soon.
