Questions raised on audit process for govt companies and statutory bodies

The Deputy Auditor General confirmed that some government funded and partially owned entities are audited by external auditors.

Atunaisa Nadakuitavuki’s comment came after Public Accounts Committee member and Opposition MP Aseri Radrodro questioned the Auditor General’s Office whether there are any government entities which are not subject to Auditor General’s review or audit.

However Nadakuitavuki said they still have powers to review the audit reports.

Radrodro then questioned Nadakuitavuki whether the Auditor General’s Office is auditing the Fiji National Provident Fund and Fiji Airways accounts.

The Deputy Auditor General said the FNPF is no longer audited by them after amendments to the Public Enterprise Act.

The Fijian government owns 52% of Fiji Airways while Qantas has 46% of the airline’s shares.

Renowned chartered accounting firm, Price Waterhouse Coopers audits and prepares the annual reports of Fiji Airways.

Fijivillage has also received confirmation that the FNPF audits and annual reports are done by reputable accounting firms like KPMG and Price Waterhouse Coopers. 

Chairman for the Public Accounts Committee Biman Prasad has now requested for a report from the Auditor General’s Office stating how many government commercial companies and commercial statutory authorities are being audited by them.

Prasad also wants the Auditor General’s Office to give their view on which entities they believe should be audited by the office.

Meanwhile Fiji Airways announced last year that it has renegotiated its loan from FNPF, with the new loan amount now being more than $60m lower than the original agreed loan facility of $181.2 million.

In late 2013, Fiji Airways opted not to draw down $35.5 million of the original loan due to successes in raising money from European banks for its A330 acquisition, combined with strong cash generation over the recent financial year.

In addition to scheduled capital repayments, Fiji Airways opted to make an additional early pre‑payment of just under $19 million last year, bringing the new loan facility down to $120 million.

Fiji Airways Managing Director and Chief Executive Officer reiterated that they have been diligent on following their repayment schedule strictly, on‑time, and now ahead of time bringing the loan down to two thirds of the original loan amount.