| 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. |
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
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explicitly cites Section 141 of the 2013 Constitution of the Republic of Fiji, which states: “Money shall not be withdrawn from the Consolidated Fund except under an appropriation made by law.”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:
- A special audit by the Internal Audit and Good Governance Division.
- A review of internal controls and procurement processes.
- An investigation into possible individual culpability for the breaches.
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.
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.
5 September 2024: |