BY JOY OFASIA

The Auditor-General has raised serious concerns over the use of public funds for the 2023 Pacific Games, following the completion of a Special Audit into procurement practices by the National Hosting Authority (NHA).

Auditor-General David Teika Dennis outlined the findings during a press conference this morning, focusing on the Pacific Games 2023 Audit Report and court rulings relating to clarifications sought by the Office of the Auditor-General (OAG) on expenditure and procurement activities for the Games.

Mr Dennis during the Press Conference

The Special Audit was undertaken with the assistance of contract auditors KPMG and examined the use of public money in delivering the Games. Mr Dennis said two related audits were conducted: the financial statements audit of the Sports Solomon Fund and a separate Special Audit of procurement practices.

The financial statements audit is nearing completion, while the Special Audit has been completed. The Government signed the 2023 Pacific Games Host Agreement in 2016, committing to provide the facilities, venues and infrastructure needed to host the Games. Parliament later established the Sports Solomon Fund under the Pacific Games 2023 Act 2017 to hold funds for hosting the Games and maintaining sports facilities.

The NHA was responsible for managing and controlling the Special Fund, planning and budgeting for the Games, maintaining bank accounts and overseeing the Games Organising and Facilities Committees. However, the audit found significant weaknesses in the Authority’s financial management and procurement practices.

Mr Dennis said the Authority did not comply with key requirements of the Public Financial Management Act when establishing the budget for the Special Fund. “As a result, it did not have the legal authority needed to incur expenditure from the Special Fund,” he said.

The audit also found procurement practices contrary to the Act, raising concerns over waste and probity. Significant weaknesses were also identified in records management, audit support and procurement controls.

Mr Dennis said these weaknesses exposed public funds to risks of poor value for money, irregular expenditure, fraud and corruption, while also creating perceptions that some decisions may not have been fair or impartial.

The findings form part of ongoing scrutiny of expenditure and procurement activities associated with the Pacific Games 2023.