Ombudsman investigates Boards of Public Enterprises [1]
Wednesday, February 27, 2019 - 19:52. Updated on Wednesday, February 27, 2019 - 21:54.
The Ombudsman Office is carrying out an investigation into a series of allegations of maladministration in the Boards of Public Enterprises.
‘Aisea Taumoepeau in a press conference on February 27 said he is carrying out an Own Motion Investigation (OMI).
“I see this as a query into whether these allegations are substantiated or otherwise. The investigation is being carried out in the public interest."
He said either way, it will be for the benefit of the Ministry to remedy any shortfall in the Public Enterprises concerned or be assured there is no undesirable maladministration in the operation of Public Enterprises.
The allegations published in the Kele’a newspaper in December last year claimed:
- Public Enterprise Boards do not follow the same procurement process as Government ministries and can spend in excess of $1 million without utilizing the procurement process
- Board members are taking loans from board funds, e.g. a member took out $800,000 loan from the board and is still paying it off
- Board members are paid tens of thousands with some paid a bonus of $60,000 each
- Friendly Island Shipping Agency (FISA) purchased MV Niuvakai ferry for $1 million although its real value was much less;
- One board had a board meeting in Barcelona, Spain; while some board members are being paid overtime.
Information regarding these allegations has been requested from the Ministry of Public Enterprises.
No time frame was given as to when the findings of this investigation which is expected to be made publicly will be announced.
Meanwhile, the Ombudsman will investigate any allegation made by the public, and will not be limited to this.