The Standing Committee on Public Accounts (PAC) has called on the Sugar Industry Tribunal (SIT) to undertake significant reforms in financial oversight and due diligence, particularly by engaging a reputable accounting firm. This recommendation follows the revelation of persistent audit challenges and critical weaknesses in financial controls, highlighted in a recent report from the Office of the Auditor-General. The examination of the Tribunal’s audited financial statements spanning from 2017 to 2020 has led to disclaimer and qualified audit opinions, primarily due to missing documentation, breaches of accounting standards, and insufficient management practices.
Key findings from the Auditor-General’s review brought to light alarming issues, such as the Tribunal’s inability to prove impairment assessments for receivables totaling $217,106, and deficiencies in VAT reconciliations amounting to $17,015. Additional complications stem from a disputed figure of $181,722 associated with the Near Infrared Project, raising doubts over the reliability of the financial statements for the year ending December 31, 2020.
The audit further exposed non-compliance with International Financial Reporting Standards (IFRS) and highlighted vulnerabilities in internal controls regarding cash handling, payments, and asset management, with some fixed assets proving untraceable. Responding to these findings, PAC expressed significant concern, positioning the necessity for heightened accountability and stronger financial oversight as urgent priorities.
While the Tribunal has intermittently engaged accounting firms, the Committee observed that these efforts have not yielded substantial improvements in financial reporting. PAC emphasized the importance of thorough due diligence in the future selection of accounting partners, ensuring they meet IFRS guidelines and adhere to the standards set forth by the Financial Management Act of 2004.
The Tribunal communicated to the Committee that it submitted its financial statements for 2021 to the Auditor-General in May 2025, while work continues on the financial records for 2022 and 2023. Additionally, they highlighted ongoing funding shortfalls, noting that their operational grant is inadequate for crucial acquisitions such as vehicles and equipment.
In response to these pressing issues, PAC has advocated for well-defined and sufficient budget allocations for the Tribunal, which are essential for enhancing operational efficiency and ensuring sound financial governance. These challenges faced by the SIT reflect broader systemic issues within the sugar industry regarding financial stability and accountability. Nevertheless, there is a positive outlook as the Tribunal aims to rectify these financial discrepancies and implement improvements in its practices. By strengthening its operational framework and financial oversight, the Sugar Industry Tribunal has the potential to cultivate greater public trust and contribute to the stability of Fiji’s sugar sector.