20 Sep 2007

Audit of Fiji National Provident Fund finds no evidence of fraud

10:16 am on 20 September 2007

An independent audit of investments made by the 2-billion US dollar Fiji National Provident Fund has found no evidence of fraud.

The audit was carried out by Ernst and Young of Australia at the request of the new board of the Fund.

The auditors say that based on the investments they were asked to consider, they found no evidence of fraud.

But they say they found a number of governance, control and structural weaknesses that potentially expose the Fund to unnecessary risks.

The auditors also say they were not allowed access to the personal financial records of relevant parties.

They say if there were to be certain types of fraud associated with these investments, it would not be possible to identify them without such access.

The auditors add that the FNPF's board has historically placed an inappropriate level of trust in the expertise of the management in general, and the chief investment officer in particular.