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​Ministry of Education Caught in $3.23 Million Budget Blowout. Finance Ministry Warns of Serious Breach of Law and Mismanagement. In leaked memorandum, the Education Ministry accused of unauthorised spending

4/10/2025

 
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Nemia Dawai
A confidential memorandum from the Ministry of Finance, Strategic Planning, National Development and Statistics has blown the lid on what it calls a “serious breach of fiscal discipline and financial law” by the Ministry of Education (MoE) after the ministry allegedly overspent more than $3.23 million from the public purse without parliamentary approval or legal appropriation. ​
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The explosive document, dated 1 July 2025, reveals a catalogue of unauthorised spending, financial mismanagement, and disregard for constitutional and statutory requirements.

The Memorandum: A Stark Warning

The memo, addressed from the Acting Permanent Secretary for Finance Nemia Dawai to the Acting Permanent Secretary for Education Ratu Meli Nacuva, warns that the ministry’s financial conduct during the 2024–2025 financial year has violated both the 2013 Constitution and the Financial Management Act 2004, as well as fundamental principles of transparency, accountability, and fiscal stewardship.

The Finance Ministry highlights several critical concerns:
  • Overspending of $3.23 million in Standard Expenditure Groups (SEG 1 and 2) beyond the total approved budget of $650.6 million.
  • Unauthorized financial commitments made without Cabinet or parliamentary appropriation.
  • Breaches of Section 141 of the 2013 Constitution, which prohibits the withdrawal of funds from the Consolidated Fund except under legal appropriation.
  • Breaches of Section 16 of the Financial Management Act, which restricts spending to approved budget allocations.

Breakdown of the $3.23 Million Blowout

The memorandum details a litany of “ad-hoc” initiatives and expenditures undertaken by the Ministry of Education without financial clearance, including:
  • Administration upgrades
  • Salary adjustments
  • Capital payments
  • Other unapproved initiatives
These activities collectively resulted in the $3.23 million budget shortfall, despite repeated warnings and fiscal guidelines from the Ministry of Finance.

A Clear Violation of the Constitution and Law

The memorandum explicitly cites Section 141 of the 2013 Constitution of the Republic of Fiji, which states: “Money shall not be withdrawn from the Consolidated Fund except under an appropriation made by law.”

It also refers to Section 16 of the Financial Management Act (FMA), which provides that expenditure must strictly follow appropriations approved by Parliament. The memo underscores that the Education Ministry’s actions constitute a “clear violation” of these legal provisions.

Consequences and Special Audit
​

The Ministry of Finance warns that the scale and nature of the overspending require urgent corrective action, including:
  1. A special audit by the Internal Audit and Good Governance Division.
  2. A review of internal controls and procurement processes.
  3. An investigation into possible individual culpability for the breaches.
The memorandum adds that the Public Service Commission (PSC) has been alerted and will review the situation for potential disciplinary measures.

Forwarded to Prime Minister’s Office
​

In an unusual and telling move, a copy of the memorandum has also been sent directly to the Permanent Secretary for the Office of the Prime Minister and the Chairman of the Public Service Commission, signalling the seriousness of the situation and possible escalation to Cabinet level.

The memo concludes with a stark warning: “The scale and scope of this financial mismanagement require immediate intervention and corrective action. The steps above are necessary to safeguard public trust and ensure compliance with financial regulations going forward.”

Systemic Breakdown or Political Fallout?

The revelations raise profound questions about the governance and competence of the Ministry of Education, the largest single recipient of government funding. A blowout of this scale not only reflects internal administrative collapse but also exposes systemic weaknesses in oversight.

Several key concerns emerge:
  • Lack of Fiscal Control: The MoE appears to have routinely committed to spending beyond approved limits without seeking supplementary appropriation.
  • Political Overreach or Bureaucratic Negligence? The reference to “initiatives” suggests that policy decisions may have been made without financial clearance, potentially under political pressure.
  • Risk of Legal Breach: The breaches cited could amount to misconduct under the FMA and possibly maladministration or abuse of office if deliberate.

Fijileaks Commentary: Business as Usual in a Culture of Impunity

This memo is a damning indictment of the rot within Fiji’s public financial management. It shows how even the most basic legal safeguards, written into the Constitution and financial law, are being routinely ignored.
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It is also a test case for accountability. Will the Public Service Commission and the Prime Minister’s Office act decisively against those responsible? Or will this $3.23 million overspend join the long list of fiscal scandals swept under the carpet?

The Ministry of Finance’s memorandum is more than a routine audit note. It is an official finding of illegality and gross mismanagement in one of Fiji’s most important ministries. The onus now lies squarely on the government to show that fiscal discipline and the rule of law still mean something.

Anything less will confirm what many Fijians already believe: that accountability in government spending is a fiction, and that the laws designed to protect public money are being ignored with impunity.

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5 September 2024: 
​From FICAC's Doorstep to World Bank Welcome Mat

*There he was on the far left of the 5 September 2024 photo in Suva - NEMIA DAWAI, unsmiling and measured, as Finance Minister Biman Prasad stood ready to welcome World Bank President Ajay Banga. Dawai was adviser to Banga at the World Bank in September 2024.

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*Whether Dawai knew it or not, the high-level meeting he was witnessing was made possible by a sudden turn of events just 24 hours earlier: the hurried appointment of Barbara Malimali as FICAC Commissioner and the equally hurried disappearance of a corruption investigation that had been inching closer to Prasad's door.
*Suva lawyer Richard Naidu had already urged Malimali to "clear the oath" so that Fiji's Finance Minister could keep date with Banga, and by the time the cameras rolled, the path was indeed clear.
*What followed was a carefully staged photo opportunity dressed up as development diplomacy, its timing lubricated by back-room manoeuvres few in the room would ever speak of.
​*And today, Fiji's Finance Minister remains on the run from FICAC - not by evasion or escape, but under the protective cloak of Prime Minister Sitiveni Rabuka himself. In Suva's political theatre, that's what passes for accountability.
*On 10 December 2024, Fiji's Ministry of Finance and Finance Minister Biman Prasad welcomed Dawai back into his new role as the Head of the Budget Division.

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