FRA CLARIFIES MISINFORMATION IN THE MEDIA

11 September 2020

The Fiji Roads Authority (FRA) wishes to clarify the misinformation in the public through certain media outlet that $72m worth of funds is unaccounted for by the FRA. It is incorrect that FRA has received $44m from municipal councils.

The FRA in 2012 entered into an understanding with all municipal councils delegating some of its functions to each council.  The Memorandum of Understanding (MOU) which expired in 2015 required FRA to reimburse the costs to each council for carrying out FRA’s delegated tasks and it was also agreed that councils would pay FRA an annual contribution for council roads maintained by FRA. The contributions owing to FRA have not been received by FRA.

Instead of funds not being accounted for, the issue is the accounting treatment of council dues. FRA as a note under contingent assets and liabilities has recorded the municipal council dues in its account as at 31^st July 2018. The office of the Auditor General however has taken a different view that these contingent assets and liabilities should be recorded in the Balance Sheet.

FRA is of the view that the MOU expired in 2015 and the amounts payable and recoverable may not eventuate. In the near future if it does eventuate it will be channeled through Ministry of Economy (MOE) and FRA will receive this in the form of grants from MOE. In addition to this there will be a net gain of $15,478,141 to FRA or MOE. This is calculated as the difference in amount receivable from Municipal council amounting to $44,037,877 and payable to the Municipal Council amounting to $28,559,736.

No comments or clarifications in this matter were sought from FRA by certain media outlets before the misinformation was released in the public domain. FRA urges each media outlet to act responsibly and practice ethical, fair, transparent and accurate reporting

Jonathan Moore

Chief Executive Officer

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