A special audit into the Solomon Islands National Hosting Authority’s financial management for the 2023 Pacific Games has highlighted significant procurement failures. Outgoing Auditor General David Teika Dennis released the findings, which scrutinised SBD$222.4 million (US$422.75 million) of expenditure, revealing breaches of legal requirements and poor record-keeping.
Key Findings of the Audit
The audit conducted by David Teika Dennis examined 16 procurement activities associated with the Pacific Games, which totalled SBD$222.4 million (US$422.75 million). The findings were described as ‘serious’, with the Auditor General noting that the National Hosting Authority failed to comply with the Public Financial Management Act. This non-compliance included a lack of legal authority to incur expenditure from the Special Fund, and procurement practices that deviated from established laws, leading to concerns over waste and integrity.
Concerns Over Competition and Due Diligence
One of the major issues identified in the audit was the bypassing of competition among contractors without adequate justification. Additionally, the report highlighted that evaluation decisions did not adhere to prescribed processes, and due diligence checks were insufficiently conducted. These failures raised significant concerns about the integrity of the procurement process, with the Auditor General emphasising the need for robust conflict-of-interest controls to protect the integrity of public spending.
Record-Keeping and Accountability Issues
The audit revealed serious shortcomings in record-keeping, with missing or inadequate records complicating the ability of auditors to trace procurement decisions. Dennis stated that public entities must maintain complete and organised records of financial transactions, which were not consistently met in this case. The lack of reliable documentation not only hinders audits but also obscures accountability for financial management failures. The report calls for public officers to understand their responsibilities in maintaining proper records.
Recommendations for Future Improvements
The Auditor General’s report serves as a critical tool for the Solomon Islands to strengthen its financial management systems ahead of future national events. It stresses the importance of transparency and accountability in the use of special funds, and the need for qualified personnel to manage financial functions effectively. The findings and recommendations aim to assist the Government and relevant ministries in improving the planning and delivery of similar events, ensuring lawful and transparent spending.
| Label | Value |
|---|---|
| Total procurement examined | SBD$222.4 million (US$422.75 million) |
| Total purchase orders | SBD$502.16 million (US$62.67 million) |
| Auditor General | David Teika Dennis |
| Key findings | Non-compliance with Public Financial Management Act |
| Issues identified | Bypassed competition, inadequate records, conflict-of-interest failures |
The audit exposed significant weaknesses in the systems used to manage public funds for the Games.
WHY IT MATTERS
The findings of this audit highlight the critical need for improved procurement practices and financial management in public sector projects, ensuring accountability and transparency.
Reported from postcourier.com.pg, 2026-08-24. The Tender Wire is published by Otnox.
