News

Audit reveals major anomalies in swimming pool project

December 4, 2024 11:45 am

[Source: Lautoka City Council]

An audit into Lautoka City Council’s records for the financial years 2015 to 2019 has highlighted significant anomalies in the management and execution of the city’s long-awaited swimming pool project.

The Auditor General’s report on municipal council reveals poor planning, mismanagement of funds, and contractual irregularities, resulting in delays and resource wastage.

It says a review of the project’s financial records revealed a discrepancy of nearly $911,695 between the total recorded expenses and the fixed asset schedule.

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It says while transactions amounting to over $1.4 were verified, the financial statements only reflected $540,518 for the swimming pool project.

The audit uncovered that the council engaged the Principal Consultant in December 2016, incurring payments of $289,542 before a formal agreement was signed on December 18, 2017.

Furthermore, the reviewed contract lacked crucial clauses, such as delay damage provisions, which are essential to mitigate risks and enforce accountability.

The Auditor General’s report states that the project remains incomplete as of March 2024.

The audit strongly recommends proper planning and management of capital projects and to draw up and sign contractual agreements.

The concept of the Lautoka Swimming Pool was approved in January 2017, with construction to begin in 2018.

The initial project was for two swimming pools, which included a competition pool with international compliance and a community pool with associated facilities, at an estimated cost of $2 million.

However, the initial budget escalated by almost ten million dollars from the initial budgeted amount of $2 million to $12.6 million following changes in the scope of work.

In 2020, Lautoka City Council terminated the contract with the project consultant and contractors due to the delay in work and failure to meet project timelines for completion.