Financial Blues: VC Chandra alarmed at drop in total income by May this year compared with same time in 2014 of $2.4million, his e-mail reveals!

12/6/2015

VC Rajesh Chandra's response to Executive Director Finance Boila:

Dear Boila
Please see my comments below and respond to me:
Professor Rajesh Chandra
Vice-Chancellor and President
The University of the South Pacific
Headquarters and Laucala Campus
Suva, FIJI
Ph 679 3232313
Fax 679 3231550
Email Chandra_r@usp.ac.fj

1.      FIC Chair has been saying we need to be more analytical when reporting. The most glaring thing in the able is the drop in total income by May this year compared with the same time in 2014 of $2.4 million. This needs more explanation than the better than budget surplus of $0.1 million. In addition, given this thin margin of 0.1 million, we should be worried that had we spent staffing funds “not slower” and done the required deferred maintenance as we should have done, then our financial posit[i]on would have been below budget. No mention of this?

2.      There is also a worrying drop in unencumbered cash down to 1.3 months as opposed to 2 months. Had we spent as needed for capex and strategic plan, the situation would have been worse.

3.      As EDF you are expected to pick up these and take corrective action; it should not be left to the VC to pick them up and worry about how our financial performance will turn out this year.

From: Kolinio Boila <kolinio.boila@usp.ac.fj>
Date: June 9, 2015 at 7:06:10 PM GMT-7

Subject: YTD financial results for May 2015

Brief Report:

1. Financial Performance

The University recorded an operating surplus of $2.6m for the 5 months of 2015 against a budgeted surplus of $2.5m.

The table below provides a summary of the financial performance

The better than budget surplus performance of $0.1m was largely driven by slower spending of staff costs and deferred maintenance costs, offset by drop in development assistance income due to drop in exchange rate.

2. Cash Flows

The cash-flow of the University showed a net decrease in cash, cash equivalents and other financial assets by $2.4m, taking our balances from $45.6m at the beginning of the year to $43.3m as at 31st May 2015, compared to a projected balance of $51.8m. The decrease in the cash target was due to non-receipt of full Government grant contribution for the second quarter except from Cooks, Niue, Tokelau and Tuvalu, offset by receipt of 50% of the grant income from both Australia and New Zealand and slower spending of capex and strategic plan funding.

The available cash was $14.7m and is below the cash reserve benchmark of $22m and is adequate to operate the University for 1.3 months. This is funded $9.7m (66%) by unencumbered cash and $5m (34%) by the overdraft facility.

We will soon circulate the detailed provisional expenditure reports by Section for each Head of Section and Unit Manager to review and provide comments for adjustments if needed.

Kind Regards

Kolinio Boila

Executive Director Finance

From Fijileaks Archives:

http://www.fijileaks.com/home/uspgate-while-usp-claims-it-doesnt-have-2m-to-fix-crumbling-staff-accommodations-it-is-forking-out-120000-to-renovate-the-vc-rajesh-chandras-house-and-more-to-be-spent-one-perk-for-vc-another-for-staff

http://www.fijileaks.com/home/uspgate-vc-rajesh-chandra-under-fire-from-pacific-islanders-from-usp-they-accuse-him-of-corruption-abuse-of-office-and-mismanagement

19 Comments

FNU Informer

10/6/2015 07:37:05 pm

Good to see that the USP VC is able to read, interpret financial statements and flag elements that need to be addressed, unlike the dumb FNU VC Rouse who can't even read Financial statements and knows nothing about management, but just spends the day doing things he likes like attending fashion shows, art galleries, food festivals or pursuing the hobbies of his wife Carolyn through FNU funds (eg Pink ribbon initiative). This dumb gora from Australia will do to FNU what he did to FSM's strategic fund.

Tomasi Koroi

11/6/2015 12:56:54 am

No, Rouse will do to FNU what Tony Tarr did to USP. But FNU is in MReddy's hands - who will bail it out. For USP, Leaks must not go nit-picking. The title of the article is "USPGATE" - a negative one., But when you read the content, you will end up saying here is one CEO who knows his stuff. Should not you congratulate Rajesh for the insights? But no, Victor suffers such an inferiority complex that he cant see any Indian in Fiji doing any good. We are an educated society and will not be moved by Indian-baiting. Tongan mafia will use any means including deception to snatch VC position from Fiji. We wont let that happen. Let Tongans run their own affairs. Shame on Masaaso. Shame on Tongans.

dekho

11/6/2015 02:00:35 am

Just why would Victor Lal be suffering from an inferiority complex when he is such an accomplished man in his own right ?
When anyone in Fiji - Indians included - are doing good that is to be commended. When anyone in Fiji - Indians included - are self- serving scoundrels who are milking the system for their personal gains and self- aggrandisement that is to be condemned. That is what Victor Lal is doing here on Fijileaks. There are many such people - Indians included - who have become part of the Bainimarama Khaiyum regime in Fiji who deserve to be condemned. Let us not gloss over that by playing the race card or the anti- Indian card.

rajend naidu

11/6/2015 02:18:28 am

Editor,
'Eventually the rot becomes too much to tolerate and good men take action to put an end to it.
We can take heart from the unfolding FIFA story in this regard. We read in ' Sepp Blatter : The Tyrant is toppled! FBI investigators hot on resigning FIFA president's trail after he announces shock exit ' ( Mail Online 3/06 ) that Blatter's position became untenable after a series of corruption scandals that plagued the world soccer body. Secretary General Jerome Valcke Blatter's main lieutenant whose position is also in question is implicated in the $10 million Jack Warner bribe.
Valcke continues to pretend he is not part of the rot that has plagued FIFA. That of course is nonsense. When the Tyrant is toppled his main lieutenant must go down with him.
Sincerely,

Tomasi Koroi

11/6/2015 03:36:54 am

Deko Baia, Tongans want to dislodge Fiji. Let them do it. But on their strength. Rajesh is the best VC Pacific has had. And Boila a very competent man. So far, Tongans have not shown any case where Rajesh is worse than Tony Tarr, Siwatibau, that Samoan man before him, and all the goras earlier. So chill. And let that man run the University. If he is questioning his internal finances, he is doing his job, and doing it well. Shame on you masaaso for leaking the email.

Deko

11/6/2015 06:14:02 am

" Rajesh is the best VC the Pacific has had " . Is that an objective or a subjective view?

Johnny

11/6/2015 05:57:49 am

@Tomasi, there is no doubt about Rajesh's competency. However, what the situation reveals is the incompentacy of the EDF. As an Accountant, he should know better than providing an analysis that doesn't hold any water. It's a shame for any Accountant if his/her boss analyses financial situation better than you can. Boila inability to provide a full narration of the situation proves that USP's finance is in dire constrains as a result of the incompetency of the EDF Ghan anything else. Boila is paid to ensure that finance and controls are in place. If he can't do that, he is no good in the position. Wonder when we will see a BoilaGate in Fijileaks. Or as some claim, Victor and Russel are on a mission to target and assist Kaiyum & co to remove Indians of Hindu background and replace with others. Well done Victor. You are a real henchmen for the junta now.

Ramdin

11/6/2015 01:49:29 pm

Kolinio Boila is a disaster. Tongan or not, it is about time this moron is exposed for his shortcomings. He is a mediocre junior accountant who suddenly found himself elevated to administrative glory thanks to departure of Munish Malik. Before his meteoric rise, he was a measly finance officer in the science section. How he was picked and suddenly promoted is a question ironically Rajesh Chandra can answer himself. This problem of an incompetent EDF is entirely Chandra's creation. Let him create his mess.

Note, Rajesh Chandra refers to not spending 'staffing funds “not slower” and done the required deferred maintenance". How did everyone miss this? It refers to urgent staffing that is needed but being deferred for years - now here is the admission by Chandra that urgent staffing is being shirked. Also admission that maintenance is being deferred. At the risk of OHS compliance? I wonder.

Note also the comment "Had we spent as needed for capex and strategic plan, the situation would have been worse." Again an admission that urgent capital expenditure needed for the basic running of the university, which is teaching is being ignored. If you are a student/parent/sponsor etc. and reading this, you should be asking the question….”why am I paying fees that should be spent for education, but is not?”

Rajesh Chandra is no saint. Read properly. Victor, you’re spot on, as usual!

Tomasi Koroi

11/6/2015 05:03:59 pm

We learn in our MBA that there must be healthy discussion amongst senior managers. The discussion between Rajesh and Boila is in that league. Just because they are discussing, and the bossman wants a subordinate to do more, doesnt mean that Boila is incompetent. Boila was a junior officer. But so are all senior officers; they all start as juniors. Tongans dont have any democratic tradition, so cant figure out anything other than a ding-dong when they see discussions between senior officers. Shame on Masaaso and Tongans.

Y tongans

11/6/2015 06:45:37 pm

i do not think it is fair and right that you refer to all Tongans or even Masaaso who have nothing to do with this.at least VL is giving evidence to his story or claim.

Fijileaks Editor

11/6/2015 05:20:52 pm

Tomasi Koroi

What have the Tongans to do with al the leaks regarding USPGate - most of them have come from inside your VC Chandra's office by people who care about USP

Thanks
Editor

bring him in

11/6/2015 06:19:57 pm

This financial mess can be easily sorted if Chandra sacks Boila and brings in a person like Andrew Singh from Australia. It was SINGH who used his financial prowess and forensic agility to uncover fraud, financial mismanagement and corruption at FNU that ultimately saw the end of ganesh chand and his cronies.

Fiji is full of Crooks

11/6/2015 06:43:23 pm

Andrew Singh was convicted on serious charges in NZ.

His leaking at FNU I think, was motivated by a personal agenda.

Tomasi Koroi

12/6/2015 01:22:15 am

Editor,
All the Anti-Rajesh petitions started with the Tongans. Its unfortunate that you havent been able to put the pieces together - any investigative journalist should be able to do this. They have been holding meetings at the homes of Tongans, even one Tongan padre teaching at Pacific Theological College was involved and disciplined for this. Tongans have had a long desire to take over USP leadership. Wake up, please. Do not hang your compatriots just because some people with hidden agenda give you information. In this case, you should commend Rajesh for being vigilant on USP finances. But you label it USP-Gate - as if this is a criminal act. And please, please, please leave Boila aside. He is doing a good job. And why do you think that there will be no divergence of opinion in management. Divergence of analytical outcomes is a must if organisations and countries need to progress - democracy is founded on adversarial system, isnt it?. This is the first lesson in Management programmes. By publishing internal communication you are doing a great disservice to institutions. Is it any wonder that the other Uni - the FNU - now has minimized communication by emails, with father christmas (aka Rouse) preferring to use phone or SMS to issue instructions. This means that there will be no record for later, and expose most managers with serious liability once Rouse ditches the ship, which we understand will happen soon - even if you refuse to expose him on credit card fraud, and even if he conspired with that NZ fraud Andrew Singh to stop the credit card investigations against him. The fact is: we are no longer simpletons; we have sufficient education and experience to gather information, assess what is happening, and make sensible calls. My first call to you is to exercise your 'journalistic' responsibility ethically and professionally.

Curious

12/6/2015 03:40:28 am

Tomasi

I suspect you are an Indo-Fijian hiding behind an i-taukei Fijian name?

USP scapegoats

12/6/2015 10:05:20 am

USP's financial problem goes back to Rajesh Chandra's foolhardy decision to get USP member countries to decrease their financial allocation, so why blame Boila.

Rajesh also introduced costly, top-heavy administrative structure, as well poor decision-making that cost a fortune in legal bills. Plus abuse of privileges by senior managers, such as VP Dilawar, who is occupying three houses, and ordered huge renovation to his quarters. Rajesh Chandra set the standard by ordering costly renovation to his house. All this catching up with USP and Rajesh is desperately looking for a scapegoat and Boila is an easy target. But in reality the problems go much deeper.

As for Masaaso, he was brought in to be a plaint VP. Masaaso is supposed to be looking after infrastructure but Dilawar making decisions on renovations to USP housing,

Masaaso is impotent, He did nothing to stop runway costs incurred by repairs to Dilawar and VC Rajesh's property.

staff and student need to revolt against VC to put things right.

Something is really wrong here link

12/6/2015 01:49:31 pm

Correct me someone. The mismanagement we are talking about is at an education institute. From what I read, staffing has been cut or "slowed down" to save money. The staff here would be academics. Instead money is being used to pay top-heavy admin staff. These people don't teach. So why is an education institute reducing academic staff, reducing infrastructure, and paying high salary for non academic ones. Doesn't make sense! Is the VC living in another world or has he forgotten that he is there because of students the institute and its reputation. If they are unhappy what will happen to all his top-heavy admin chums. So he spends money on court cases, in renovations of his house, pays lucrative salaries to his buddies. What about the vacant academic positions, the reason for so many academics leaving. He needs to get his head checked!

Protest

13/6/2015 06:17:01 am

This has been the allegation all along that RC is reducing funding for much needed staffing and diverting funds elsewhere, and here is the smoking gun! His own admission.

What a rotten imbecile!

Bahuki

16/6/2015 01:13:43 pm

Well read and well analyzed by the USP VC himself, but can't say much about his FNU counterpart though

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