The Walesi Technical and Financial Investigation report will be forwarded to the Fiji Independent Commission against Corruption today following revelations of significant governance and financial management failures.

Deputy Prime Minister and Minister for Communications Manoa Kamikamica revealed the findings of the report during his ministerial statement in parliament today.

Kamikamica says two investigations were carried out on the technical and financial aspects of Walesi.

He says the report highlights significant lapses in fiscal responsibility, procurement processes, and transparency.

Deputy Prime Minister and Communication Minister, Manoa Kamikamica

Kamikamica says from 2015 to December 2022, the government allocated $123.6 million to Walesi.

He says despite this substantial investment, the company remained heavily reliant on government funding due to its inability to generate adequate revenue streams.
The Communications Minister says ten payments totaling $9.3 million could not be substantiated as relevant documentation was missing.

“This lack of records made it impossible to confirm whether these payments complied with the fund’s intended purpose or legal requirements. The audit was also unable to identify the actual cost of the project against the budget. Infact, Honorable Speaker, there was no budget and so the detailing of costs was not transparent.”

Kamikamica says an analysis based on the purchase of inventories and additions to property, plant, and equipment between 2015 and 2022 indicates that project costs exceeded $70 million.

He says the governance, and procurement regulations were routinely ignored.

He adds that there was never a tender on anything in Walesi and that high-value contracts, including a $3.6 million project management contract, were awarded without tendering.

He adds that the tenders were waived.

Kamikamica adds the project manager who got paid $3.6 million for the duration revealed interesting facts.

He says the audit revealed that the scope of work was very broad, the deliverables and timelines were not detailed and the contract did not have a closure and cost limit.

Additionally, progress reports were not given to the board in a consistent manner.

He adds that there was no evidence to indicate the projects were properly monitored, as there was no documentation provided during the audit.

The Communications Minister further reveals that the technical assessment conducted with the assistance of the International Telecommunication Union uncovered systemic flaws in the design and implementation of Walesi’s digital television network.

He says Walesi failed to obtain the necessary operating and spectrum licenses for its operations.

“So, you can argue it was operating illegally. This not only exposed our nation to risks of interference from critical services, like civil aviation, but this reflects poor oversight and negligence in complying with basic international telecommunication obligations.”

Kamikamica adds that while Walesi provided free set-top boxes to low-income households, encryption policies forced families earning over $30,000 annually to purchase proprietary services, which are supposedly free-to-air services.

He says this undermined the principle of universal accessibility.

He further says the network was implemented using a multi-frequency network, MFN, a model that has significantly higher operational costs compared to the more efficient single-frequency network, which is recognized globally for providing better coverage and cost efficiency, especially in countries like Fiji.

He says this basic failure of planning reflects a lack of foresight.

Opposition Member of Parliament Faiyaz Koya says Kamikamica should have referred the report for investigation, and they look forward to the findings.

Koya added that while the Minister acknowledged issues he had discovered and stated he would refer them to FICAC, once this was said, he should have refrained from further comment on the matter.

Koya also mentioned a recent issue regarding boxing, where they were told to stay silent because it is under investigation.

He noted that Walesi has reached 90 percent of the population and provided free digital services to 200,000 households.

Koya further stated that the project was estimated at $200 million, with the government contributing $100 million, and the remainder funded through private sector investment and donor contributions.