The Standing Committee on Public Accounts (PAC) has urged the Sugar Industry Tribunal (SIT) to ensure proper due diligence and engage a reputable accounting firm following years of audit difficulties and identified weaknesses in financial controls, as reported by the Office of the Auditor-General. This recommendation was made after examining the Tribunal’s audited financial statements from 2017 to 2020, which received disclaimer and qualified audit opinions due to missing documentation, violations of accounting standards, and inadequate financial management practices.
The Auditor-General’s review highlighted serious issues including the Tribunal’s failure to demonstrate impairment assessments for receivables amounting to $217,106 and a lack of VAT reconciliations valued at $17,015. Further complications arose from a disputed sum of $181,722 linked to the Near Infrared Project, causing concerns over the accuracy of the financial statements for the period ending December 31, 2020.
The audit pointed out non-compliance with International Financial Reporting Standards (IFRS), vulnerabilities within internal controls over cash, payments, and assets, alongside untraceable fixed assets. PAC expressed alarm at these findings, underscoring the pressing need for increased accountability and robust financial oversight.
Despite having engaged an accounting firm intermittently, the Committee remarked on the absence of meaningful improvements in financial reporting. They stressed that it is vital for the Tribunal to conduct thorough due diligence before selecting an accounting firm, ensuring the selected entity is capable of meeting IFRS requirements and upholding the standards mandated by the Financial Management Act of 2004.
The Tribunal informed the Committee that it had submitted its 2021 financial statements to the Auditor-General in May 2025, while work on the financial records for 2022 and 2023 is still underway. Additionally, the Tribunal pointed out funding deficits, stating their operating grant is insufficient for essential capital purchases like vehicles and equipment.
In light of these concerns, PAC has advocated for clear and adequate budget allocations for the Tribunal to enhance its operational effectiveness and safeguard proper financial governance. The ongoing challenges faced by the SIT resonate with broader issues within the sugar industry, particularly around financial stability and accountability. However, there remains a hopeful outlook as the Tribunal seeks to address these discrepancies and improve its financial practices moving forward. By solidifying its operational framework and financial oversight, the Sugar Industry Tribunal has the potential to foster greater public confidence and stability within Fiji’s sugar sector.