Dennis said the National Hosting Authority’s (NHA) accountable officer did not have the legal authority to spend funds from the Sport Solomon Fund for the Games, including funds released through four advance warrants.
“The accountable officer of the National Hosting Authority did not have the authority to expend funds from the Sport Solomon Fund for the Pacific Games 2023 including funds from advance warrants made on four separate occasions. Expenditure approvals for the funds were without lawful authority,” Dennis said.
Another key finding concerns the NHA’s modification policy, which allowed a blanket waiver of competitive tendering.
The ruling found that the policy was beyond the powers of the NHA and declared it null and void.
“The modification policy that purported to authorise the blanket waiver of competitive tendering were beyond the powers of NHA and so the policy is null and void.”
Dennis said expenditure made under the blanket waiver was therefore also without lawful authority.
The court has referred the matter back to the OAG to complete its audit reports and table them before Parliament in accordance with the Constitution.
NHA and its members have also been ordered to respond consistently and cooperatively to the Auditor General so that the audit functions can be completed.
The ruling further clarifies that special funds are considered public money and, unless Parliament expressly provides otherwise, must comply with the Public Financial Management Act.
“It is very clear from this court ruling that special funds are public money unless explicitly required otherwise by Parliament.”
“Accountable officers of special funds including for the Sport Solomon Fund must have a valid warrant to be able to lawfully incur expenditure.”
The OAG had previously sought legal clarification over the NHA’s expenditure and procurement activities relating to the 2023 Pacific Games.
The latest ruling is therefore expected to provide the legal clarity needed for the audit to proceed and for the outstanding reports to be completed.
ENDS//
