$222M Pacific Games spending bombshell

A special audit into the spending of public funds by the Solomon Islands National Hosting Authority (NHA) for the 2023 Pacific Games has uncovered significant lapses in procurement, financial management, and record-keeping, according to outgoing Auditor General David Teika Dennis.

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My overall conclusion is serious. The National Hosting Authority failed to comply with key requirements of the Public Financial Management Act in its expenditure and procurement practices.

Dennis described the findings as "serious," stating that the NHA failed to comply with the Public Financial Management Act in its expenditure and procurement practices. The audit examined a sample of 16 procurement activities totaling SBD$222.4 million (US$22.75 million) out of SBD$502.16 million (US$62.67 million) in purchase orders associated with the Games. "The National Hosting Authority failed to comply with key requirements of the Public Financial Management Act in its expenditure and procurement practices," Dennis told reporters.

Among the major concerns highlighted were instances where competition between contractors was bypassed without sound justification. The audit also found that evaluation decisions did not follow prescribed processes, due diligence checks were insufficient, and conflict-of-interest controls were inadequate. Furthermore, the misuse of customs duty exemptions was identified as another area of concern, compounded by poor records management and insufficient audit support, making it difficult for auditors to trace decision-making processes.

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We found procurement practices that were contrary to the law and contributed to waste and probity concerns.

The audit's findings underscore significant weaknesses in the systems used to manage public funds for the Games, which represented one of the Solomon Islands' largest national events. While the audit has documented cases raising concerns about potential fraud or wrongdoing, Dennis clarified that the audit itself has not established that fraud occurred. These cases will be referred for further consideration.

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That does not mean the audit has established that fraud occurred. But it means cases raising sufficient concern will now be referred for further consideration.