Why one company got most AFL projects-AG
The AG has established that International Shop Fittings or ISF was engaged on several projects at AFL which include construction works at the Electrical and Mechanical workshop, the towers and terminal building toilets at the Nadi Airport. The report also reveals that the same company was also engaged by the then AFL Chief Executive, Ratu Sakiusa Tuisolia for construction work carried out at his private residence in 2004.
Another company, Baycorp Holdings Limited, was also awarded the tender by AFL in 2004 after a selective tendering process, for the CEO's company residence. It has been noted that in all these cases the contract agreement with AFL were signed by one Anil Chandra who signed as Managing Director of the two companies, Baycorp and ISF.
It has also been ascertained that International Shop Fittings did not have the capacity to carry out some of the projects on its own. Instead sub-contractors, Lewedua Woodland Construction Limited was engaged by the company to work on the Electrical and Mechanical Workshop, and the terminal building toilet projects at the Nadi Airport.
The Auditor General states that the engagement of one particular company for AFL's major capital projects and the CEO's private residence casts doubt on the transparency and integrity of the company's tender process. The AG's report further reveals that although Tuisolia stated that he had declared his interest in dealings with ISF, there was no evidence to suggest that this was done in the Board Working Papers and Board Minutes which were prepared for the projects awarded to the company. Instead it was noted that in the awarding of tenders for certain building works, the Project Team consulted the CEO prior to reviewing the decision of an independent project consultant. ISF was still awarded the tender for this job.
However in reply the AFL management said ISF's engagement in several projects is a coincidence but it was selected and approved by the board for the various projects for its competence and value for service.
AFL also reveals that ISF had done the renovations at Tuisolia's private residence in Suva after changing its original name from Baycorp. It said the payment to ISF to date is over $98,000 and was paid through a bank loan and the final full payment would be around $104,000.
AFL also clarifies that Tuisolia and his wife had supplied building materials valued at $45,000 at their own cost. It said the CEO's wife, Imrana Jalal handled the entire contract and payments to ISF with no involvement from the CEO.
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