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The past 12 days have been difficult for the National Hosting Authority (NHA) following the release of Auditor-General’s special audits report that raised serious concerns about certain aspects of the Games financial and procurement processes.
The NHA herein wishes to address these concerns whilst also asking that any discussions pertaining to this matter be grounded in facts and not to lose sight of the much bigger story of what the 2023 Pacific Games delivered for Solomon Islands.
The National Hosting Authority acknowledges the Auditor General’s special audit report, takes its findings very seriously, and accepts the determinations made by the Court. NHA however wished that the annual financial statement audits for earlier years had been completed and provided to the organization much sooner.
Had those reports and findings been available whilst the Games Organizing Committee (GOC) that was responsible for the actual delivery of the games was still in place, the NHA would have had an earlier opportunity together with GOC to correct weaknesses. However, that does not remove NHA’s responsibility to answer the matters now raised.
The Court has clarified how the Financial Management Act 2013 (FMA 2013) applies to expenditure from the Sports Solomons Fund. It recognised that this clarification has significance beyond the Sports Solomon Fund which may affect the administration of other special funds maintained by Government agencies.
This is a very important point to make because Sports Solomons Fund is only one of several Special Funds established by successive governments under Section 100(2) of the Constitution that are currently operating in exactly the same manner as the Sports Solomons Fund.
The ruling demonstrates a wider failure in the government financial system over the years where no warrants to incur expenditure from special funds were issued by the Ministry of Finance and Treasury to any of the Special funds – a matter that now needs to be addressed to ensure that ‘currently existing’ and ‘any new special funds’ are operated legally.
For its part, the NHA accepts the Court’s ruling. The NHA will work with the Ministry of Finance and Treasury to address the warrant requirements identified by the court. The important point is, now that the legal position has been clarified, the systems and processes relating to special funds must now be corrected going forward. This is important because this ruling runs counter to what had been the default operating practise in relation to special funds since their inception and continue to this day. The NHA welcomes this clarity given that the Sports Solomons Fund is not the only special fund that had been spending public funds without the appropriate warrants identified by the Court.
NHA also welcomes the clarity of the ruling in relation to the FMA 2013 and the PG2023 Act 2017 and accepts the ruling in one aspect of NHA’s March 2023 Modification Policy where the Court ruled that NHA had exceeded its lawful authority in relation to the granting of the blanket waiver.
On this matter, it is important for the public to understand the situation that led to the policy modification and the legal basis upon which it was made.
In March 2023, only seven months remained before facilities and operational arrangements had to be Games-ready and only eight and a half months remained before the opening ceremony. Significant procurement and preparation remained outstanding, and the Pacific Games Council had raised serious concerns about the Games readiness and the need to accelerate delivery, to the extent the PGC specifically demanded that the ITB/GTB (Tender Boards) meet more regularly and for the delegated spending authority for the NHA Chair and GOC CEO be increased.
NHA Board believed that without faster procurement decisions, there was a real risk that the important games preparations would not be completed on time. The Board therefore increased the level delegations to several officers. The then Attorney General who was also a member of the NHA Board advised the Board that increased delegations could be done in the context of special funds hence under section 46 of the PG2023 Act 2017 to address the critical challenges in procurement so close to the games, and that such policy decisions could be further protected legally through creating regulations, while noting that this was only months before the games.
The NHA believed at that time that the changes were lawful and were necessary to deliver the games. The Court has now ruled that the blanket waiver aspect of the March 2023 policy went beyond NHA’s lawful authority. NHA accepts the ruling. The NHA Board acted in good faith and in response to exceptional and time-critical delivery pressures, noting that the court itself accepted that the operational circumstances confronting the NHA were genuine and pressing. Failing to deliver the Games would mean a failure in our country’s contractual obligation to do so which would also have its own consequence.
The Auditor General’s Special Audits report identified control and governance weaknesses, non- compliance and negligence issues and wrongdoing / fraud indicators. These concerns are serious and need to be examined appropriately.
While the Court did not make findings of individual wrongdoing against any officer, contractor or public servant, this does not absolve the NHA nor any of the bodies responsible for implementing the Pacific Games preparations from wrongdoing. Where the Auditor General’s special audit report identifies areas that will require their own further investigations, such areas need to be progressed to respective responsible authorities.
Much of the current public narrative is on what the NHA and the other bodies established under the PG2023 Act (2017) had done wrong. It is equally important not to lose sight of what the NHA and partners had done correctly which had left a legacy that Solomon Islands can be proud of. It is important that the success story of the 2023 Pacific Games is not reduced to the current controversies. The true legacy of the 2023 Pacific Games is the building of a new generation of people with newfound belief, confidence and pride in their abilities to compete at the highest level representing their country and win as demonstrated by the highest ever medal tally from our athletes in Pacific Games history in the 2023 Pacific Games.
The 2023 Pacific Games gifted Solomon Islands with modern sporting facilities that are the envy of many pacific island countries, which our athletes and communities can use for years to come – including the national stadium, the aquatic centre, the Friendship / Futsal Hall, the modern SIFF Academy, the new water sports park, the new seven-a-side hockey field, the multi-functional hall at KGVI, the new sports field at the east-end sports precinct, the sports legacy house for the National Olympic Committee of Solomon Islands, the new 200 plus accommodation for Solomon Islands National University, the national institute of sports, the new two-story administration building at KG area and many sport facilities and sports equipment.
These achievements came through the work of three successive governments, the Pacific Games Council, NHA and other Games bodies, development partners, sporting organisations, thousands of volunteers and the people of Solomon Islands. They were delivered during the very difficult period of the COVID-19 pandemic, working through the strict protocols of public health restrictions that added immense pressure to be ready on time. That is also part of the public record, and it is a legacy that our country should be proud of and celebrate.
Celebrating that legacy does not mean putting the Auditor General’s special audit report findings aside. On the contrary, both things can be true, and both can run side-by-side. The lasting benefits of the 2023 Pacific Games are visible every day and cannot be denied. At the same time, the serious concerns about aspects of the Games ‘financial and procurement processes’ presented in the Auditor General’s special audit report need to go through their own processes based on their own evidence.
NHA wishes to thank members of the public who have raised genuine concerns and equally like the people of the country to recognise what the games has achieved for the country. Public scrutiny is part and partial of improving our institutions. However, the NHA asks that discussions remain fair, factual, and based on evidence.
NHA will continue to work closely with the officer of the Auditor General to complete the remaining financial audits for the period 2019 to 2023, complete the full narrative report for PG2023, work with the Ministry of Finance and Treasury on the warrant requirements identified by the Court, disposal of the remaining non-financial assets, and prepare for the orderly closure of the NHA after the final report is tabled in parliament.
The 2023 Pacific Games is now part of our history. We should be proud of and celebrate our achievements, whilst at the same time deal properly with the issues that have been raised in the Auditor General’s special audit report to learn from them and at the same time protect the legacy created for the people and athletes of Solomon Islands.
NHA Secretariat
