An independent audit report into Fiji's Native Lands Trust Board has severely criticized the body for failing to conduct a proper investigation before buying its 10-million US dollar computer system.
Fiji TV says the audit was conducted by KPMG as part of the interim government's clean-up of the NLTB which bought the mySap IT system from Pacific Connex, a company owned by local businessman, Ballu Khan.
The audit report questions the credibility of the mySap system and recommends that the NLTB seriously reconsider continuing its business relations with Pacific Connex through its commercial arm, Vanua Development Corporation.
The audit report also says Pacific Connex is currently facing financial difficulties and with Vanua Development Corporation having given it a loan of 2-point-4 million US dollars.
It says Pacific Connex is financially struggling and may be insolvent.
On the mySap IT system, the KPMG report says it may be functioning but in some aspects it is seriously deficient.
The report will go before the board of the NLTB tomorrow which will be chaired by President Iloilo and will also decide the future of the NLTB's suspended general manager, Kalivati Bakani.