A report by veteran Pacific affairs journalist Michael Field claims some academics and staff at USP may have been rorting the university’s financial system for years.
The activities were uncovered in a report by Accountants BDO who were brought in after the university’s new Vice Chancellor, Professor Pal Ahluwalia found irregularities.
Other USP documents showed the Fijian government has been trying to drive Professor Ahluwalia out of the country, Field said.
There was also documents concerning a sex for grades scandal at the university.
As reported in our accompanying story, Professor Ahluwalia has now been suspended, an act which has drawn criticism from Tonga and several other Pacific nations.
Australia has suspended aid until the university is cleaned up.
USP is a regional university owned by 12 Pacific nations.
One of the academics named in the BDO report is Derreck Armstrong who has been appointed acting Vice Chancellor.
Field’s report said USP the BDO investigation showed academics and staff had been paying themselves millions of dollars in salaries and allowances they may not have been entitled to.
The payments were made during the reign of Fijian Vice-Chancellor Rajesh Chandra, who also benefited.
Ahluwalia, born in Kenya and schooled in Canada, was appointed by the USP Council as VC to replace Chandra. The BDO report suggests this was against the wishes of Fijian interests.
BDO Auckland’s 114 page report was submitted to USP on August 21 last year, but kept secret. However, major donors have seen it.
Field, whose full report can be found online, said USP documents revealed the Fiji Government had tried to drive Ahluwalia out of the country. His home had been raided by USP security staff and his credit cards taken.
Correspondence also existed on claims that students were pressured into having sex with academics return for grades and high level cover-ups of deaths associated with this.
He said former Vice Chancellor Chandra directly benefited from one kind of operation, “professional development leave”. Payments made to others included “inducement allowances’, “responsibility allowances”, “acting allowances” and bonuses.
“We are of the view that the oversight, governance and control of remuneration is a key weakness across USP,” the BDO report said.
BDO said “inducement allowances” had been paid extensively across USP, totalling F$4,271,774 over three years to December 2018.
The allowances were paid without full knowledge of the remuneration committee and council.
Responsibility and Acting Allowances totalling F$3,011,112.53 had been awarded.
BDO said there was “a consistent theme of policy breaches” over allowances. Bonus payments worth F$1,890,129 were made.
“We are of the opinion that the cumulative effect of this lack of oversight and control has resulted in breaches of policy (where policies exist) and numerous instances where staff members, particularly those in senior roles, are remunerated well outside Council approved salary bandings.”
In 2018, a total of 57 employees received inducement payments, and 90 over three years, ranging from 35 percent of salary up to 60 percent.
The highest inducement allowance was F$214,200.
“We have noted cases where employees have received an inducement allowance for many years, some tracing back over a decade spanning multiple contracts, promotions and pay increases,” the BDO report said.
A total of 24 employees over three years shared F$2,152,305.86 in “responsibility allowances” and F$828,806.67 for “acting allowance.”
A number of people cited in the report had direct ties to Prime Minister Voreqe Bainimarama’s Fiji First Party.
Another linked to Bainimarama’s government was identified as breaching salary bands which BDO found to be “fiscally irresponsible.”
One of the more detailed cases examined by BDO was a woman in an administrative position.
Chandra appointed her directly without the job being advertised and BDO noted “serious irregularities” in her promotion and back payments made as she started the job.
On Chandra’s orders, she started work with backpay of F$63,008 and an annual salary of F$77,748.
BDO said Chandra’s “involvement … is a misuse of his position and a breach of USP policies. We also do not understand why Professor Chandra is getting in the payroll affairs of a mid-level staff member. There are supposedly adequate processes in place.”
The main points
- A report by veteran Pacific affairs journalist Michael Field claims some academics and staff at USP may have been rorting the university’s financial system for years.
- The activities were uncovered in a report by Accountants BDO who were brought in after the university’s new Vice Chancellor, Professor Pal Ahluwalia found irregularities.
For more information
Secret report reveals widespread salary and allowance rorts at USP
