I GUARANTEE YOU REALLY REALLY WANT TO READ THIS - JESE Transparency & Accountability An Opinion by Mick Beddoes We hear a lot about the need for a government to be transparent and accountable to the people and no one refers more to this than the AG and Minister for Justice & Elections himself. He often refers to the Bainimarama government as ‘transparent & accountable’. But the truth is, in nearly 8 years of the Bainimarama – Khaiyum regime, transparency and accountability have been absent except in words spoken. Based on the principles of repetition – just keep using the words time after time – they hope that people will actually come to believe they are transparent and accountable. In an effort to understand where the regime’s spending is concentrated and to try to relate this to what is going on in the country today, I summarized the past 13 years of Annual Government Budget Estimates and Actual expenses recorded for the past 11 years from 2002 to 2012. I have also used the revised estimates for 2013 and the Estimate for 2014. I am no chartered accountant or financial expert; however from my time as a parliamentarian I do understand budget documents. I trust the results of my research might stimulate some discussion and prompt the regime to release the Audited Accounts to 2013. What is irrefutable is that inclusive of 2013, the regime has spent some $14.8 billion without any transparency and accountability. 1. Office of the Auditor General Over the past 8 years $25.5 million has been spent to maintain this office of 83 staff. So the question is, could they have all been sitting idle over the past 8 years while receiving $25 million? Hardly likely, so I put a simple question to the Auditor General requiring a simple yes or no answer. Have the accounts of government been audited. Yes or No? Depending on the answer, my next question goes to Bainimarama and Khaiyum: If the accounts have been audited, why have you not released them? What are you afraid of? If the accounts have not been audited why not? Why can’t you walk your talk? 2. Summary of Government Spending The specific expenditure items I have selected for comment are not in any order but in my opinion they all point towards a possible diversion of taxpayers’ funds towards promoting the Bainimarama-Khaiyum campaign in the run up to the 2014 elections. 3. HEAD 50: Miscellaneous & Unallocated Expenditures Group No Particulars 2012 2013 2014 Total 5 3 Expenses for experts & consultants 577.6 1,600.0 2,160.0 4,337.60 5 Qorvis Communications 994.30 1,100.0 1,000.0 3,094.30 Total 7,431.90 This allocation of $3 million for the Qorvis spin doctors, is proof positive that the Bainimarama –Khaiyum government have engaged this international group to co-ordinate ‘and manage their propaganda using taxpayer funds. As taxpayers we have a right to ask: What are the Qorvis terms of reference? What specific jobs have they done in 2012 and 2013 for the taxpayers of Fiji to warrant the $2 million they received in these years and what are they doing for the people now to justify the $1 million they’ll get in 2014? The $4.3 million for experts and consultants is also an expense that is likely channeled towards the efforts of Qorvis and other regime promoters for services rendered. HEAD 50: Miscellaneous & Unallocated Expenditures Group No Particulars 2012 2013 2014 Total 6 5 Public Broadcast Service (Radio) 1,110.0 1,110.0 1,110.0 3,330.0 6 Public Broadcast Service (TV) 1,836.4 1,800.0 1,800.0 5,436.4 Total 2,946.40 2,910.00 2,910.00 8,766.40 The taxpayers have to fork out $2.9 million a year to subsidise the FBC, despite its recent multi-million makeover. Such a huge payout explains why we see such one sided FBC coverage primarily focused on the regime and its activities with little coverage of opposing parties or dissenting viewpoints. Add this $8.7 million handout to the FBC to the $7.4 million in Group 5, and the propaganda funding war chest jumps to $16.1 million dollars 4. HEAD 16: Ministry of Information Group No Particulars 2012 2013 2014 Total Budget Allocation 3,841.9 7,108.3 3,948 14,898.20 It is no secret that this Ministry headed by Sharon Smith Johns spends much time promoting Bainimarama and Khaiyum via the Fiji Sun and FBC with ads, media releases and publications. So I suspect that the majority of funds for publications, advertisements and such items form part of the Qorvis managed propaganda Budget. This means almost $30.9 million has been, and is being, spent on the never-ending media blitz about Bainimarama and the regime. HEAD 50: Miscellaneous Services Group No Particulars 2012 2013 2014 Total 1 1 Salary Adjustment 2,234.5 5,000.0 5,000.0 12,234.50 The pre-election gift of 124% increases in salaries for unqualified and inexperienced regime personnel is located in Group 1 expenditure. I would not be surprised if some of the beneficiaries contest the elections as they now have a salary level that can help fund their campaigns. 5. HEAD 50: Miscellaneous Services Group 9 Group No Particulars 2012 2013 2014 Total 9 2 New vehicle replacement 573.9 500 500 1,573.9 6 New Vehicle Leases 6,611.5 9,815.7 12,787.4 29,214.6 Total 30,788.5 Immediately following the 2006 coup the military paraded on national TV all the government Ministers 4 x 4 vehicles, including mine as Opposition Leader, telling the people these were an example of the ‘excesses’ of a corrupt government. They announced they would sell them and use the proceeds for the poor. We all know that they did not sell them and instead handed them out to their team members. In 2009 they switched to leasing vehicles. Previous governments spent about $1.2 million a year for vehicles, the Bainimarama –Khaiyum government have spent $9.7 million a year on leasing which represents a 708% increase. Question: Which companies are involved in the leasing to government, what is their annual share and what are the terms and any other perks that come with a leasing contract, like other vehicles for other purposes? Table 1: Comparison of 5 Year Spend SDL 2002-2006 vs Bainimarama 2007-2011 Particulars SDL 2002 to 2006 Regime 2007-2011 Increase in Spending % Increase Operating Expenditure $4,468,909,000 $5,062,478,000 593,569,000 13.28% Finance & Debt costs $615,369,200 $1,056,991,800 441,622,600 71.77% Capital Construction $661,255,400 $706,473,100 45,217,700 6.83% Capital Purchase $96,347,900 $112,607,500 16,259,600 16.87% Capital Grants & Transfers $366,917,800 $783,367,900 416,450,100 113.49% TOTAL SPEND $6,208,779,900 7,721,918,900 1,513,139,000 24.37% Table 1 shows the total spend of the last 5 years of the Qarase government verses the first 5 years of the Bainimarama-Khaiyum government. The increase in the first post coup spend is $1.5 billion Table 2: Regime Post Coup Spend (2007 – 2011) vs Pre Election Spend (2012 – 2014) Particulars Post Coup 2007-2011 Add Pre Election 2012-14 Increase in Spending % Inc Operating Expenditure $5,062,478,000 8,915,366,900 3,852,888,900 76.10% Finance & Debt costs $1,056,991,800 1,867,909,900 810,918,100 76.71% Capital Construction $706,473,100 1,102,201,300 395,728,200 56.01% Capital Purchase $112,607,500 239,380,200 126,772,700 112.57% Capital Grants & Trans $783,367,900 2,530,873,300 1,747,505,400 223.07% TOTAL SPEND 7,721,918,900 14,951,659,600 7,229,740,700 93.62% [Source of information: Actual Expenditures 2002 to 2012 Revised Expenditures 2013 & Estimates for 2014]. Table 2: Compares the 8 year expenditure of the Bainimarama –Khaiyum regime with its first 5 years in power. This comparison is necessary to show that in the pre election period of 2012 to 2014 the level of expenditure has sky rocketed and in just 32 months from January 2012 to December 2014 approximately $1.3 billion dollars has been, and is being, spent by the regime in Works & Transport $239.5 million, Public Utilities & Energy $243.6 million and Fiji Road Authority $849.8 million. While I accept that these projects provide employment and opportunity, the lack of transparency and accountability suggests that the issuance of contracts to individuals and companies to deliver on these projects will likely be subject to favoritism, corruption and abuse. By the time the elections are over the Bainimarama –Khaiyum regime would have spent $14.9 billion of taxpayers’ money without accounting for one single dollar of it. Hardly the legacy of an accountable and transparent government. This current year’s expenditure and deficit is also relying on $471.1 million from the proceeds of sale of state assets. Mick Beddoes Sabeto
Posted on: Sat, 31 May 2014 01:13:21 +0000
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