SUPPORTING documents to complete a full audit into the 2023 Pacific Games expenditures have reportedly gone missing and may have been destroyed, sources have revealed.
These documents include receipts, authorisation of payments, who received the payments and so on.
“These documents are crucial to the investigation and their disappearance could distort a full and balanced audited report. It is possible these documents have been destroyed,” the sources said,
The revelation came as a team from the Fiji-based international audit firm, KPMG arrived in the country to begin its work.
No one knows the exact cost of hosting the November-December Games.
According to Artificial Intelligence (AI) it stated, hosting the 2023 Pacific Games … costs around USD250 million. However, some estimates place the total cost closer to USD355 million, AI said.
A large portion of the cost was covered by foreign aid donors, particularly China, which contributed significantly to infrastructure development like the new National Stadium, AI said.
The Games spurred major investment in infrastructure upgrades beyond just sports facilities, contributing to the overall cost. While a significant expenditure for the Solomon Islands, the government sees the hosting of the Games as a potential economic boost due to increased tourism and investment, AI said.
Writing for the EastAsiaForum, Charles Hawksley said in an article published on 11 December 2023 that the cost of the Pacific Games is both an economic and a political issue.
“Estimates of overall costs vary, with a November 2023 estimate placing the total cost at US$250 million and another from June 2023 at around US$355.5 million. If the latter estimate is accurate, the cost of the Games may be equivalent to around 46 per cent of the country’s annual budget and 22 per cent of its 2022 GDP,” Dr. Hawksley said.
“There is no doubt that the Games are a major expense, surpassing even the initial US$210 million cost of the Tina River hydropower project,” Dr Hawksley, a Senior Lecturer in the School of Humanities and Social Inquiry at the University of Wollongong said.
The involvement of the Solomon Islands Independent Commission Against Corruption (SIICAC) and the police suggest criminal activities are suspected.
Auditor General David Dennis told a news conference recently that the financial statement audits of the National Hosting Authority (NHA) for the calendar years 2019 to 2021, along with a special procurement audit, are anticipated to be reported in the first quarter of 2025.
Mr Dennis said ongoing challenges in obtaining requested documentation from the NHA continue to delay the completion of these audits.
“To date, proper documentation to support the validity of actions and transactions for certain major procurements has not been provided and remains a concern. Updates on the expected completion dates for the remaining financial audits covering 2022-2024 will be shared later.”
The Auditor General’s Office in partnership with KPMG, has been conducting the audit of the NHA, which oversaw the hosting of the 2023 Pacific Games in Honiara.
Prime Minister Jeremiah Manele has relieved his Secretary, Dr Sir Jimmie Rodgers of his special duties to allow him to focus on this priority.
Sir Dr Jimmie requested the appointment of a new Secretary to the Prime Minister (SPM) to handle the regular responsibilities so he could focus on other high priority
Dr Sir Jimmie Rodgers, Secretary to Prime Minister – Special Duties’ responsibilities will include:
- Completing the audit process for the 2023 Pacific Games and ensuring its presentation in Parliament;
- Assisting in securing finances and organizing international and regional events in 2025, including the Pacific Islands Pageant and the Honiara Summit, both of which he played a key role in securing;
- Coordinating the Pacific Ministers’ Regional Meeting on Water in August; and
- Co-chairing, alongside the Permanent Secretary of the Ministry of Foreign Affairs and External Trade Colin Beck the planning and hosting of the Pacific Islands Forum Leaders Meeting in September.
In addition to the NHA audit, media reports have confirmed that the police are reportedly investigating allegations of abuse related to the $309 million Economic Stimulus Package (ESP), based on referrals from the Auditor General’s Office.
It is understood the Auditor General has already submitted these referrals to the National Criminal Investigation Department (NCID) for criminal investigation.
By Alfred Sasako
