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The Case for Lau and Namosi Masilina Tuiloa Rotuivaqali

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The Case for Lau and Namosi Masilina Tuiloa Rotuivaqali ACCOUNTABILITY IN FIJI’S PROVINCIAL COUNCILS AND COMPANIES: THE CASE FOR LAU AND NAMOSI MASILINA TUILOA ROTUIVAQALI ACCOUNTABILITY IN FIJI’S PROVINCIAL COUNCILS AND COMPANIES: THE CASE FOR LAU AND NAMOSI by Masilina Tuiloa Rotuivaqali A thesis submitted in fulfillment of the requirements for the degree of Master of Commerce Copyright © 2012 by Masilina Tuiloa Rotuivaqali School of Accounting & Finance Faculty of Business & Economics The University of the South Pacific September, 2012 DECLARATION Statement by Author I, Masilina Tuiloa Rotuivaqali, declare that this thesis is my own work and that, to the best of my knowledge, it contains no material previously published, or substantially overlapping with material submitted for the award of any other degree at any institution, except where due acknowledgement is made in the text. Signature………………………………. Date……………………………… Name: Masilina Tuiloa Rotuivaqali Student ID No: S00001259 Statement by Supervisor The research in this thesis was performed under my supervision and to my knowledge is the sole work of Mrs. Masilina Tuiloa Rotuivaqali. Signature……………………………… Date………………………………... Name: Michael Millin White Designation: Professor in Accounting DEDICATION This thesis is dedicated to my beloved daughters Adi Filomena Rotuisolia, Adi Fulori Rotuisolia and Adi Losalini Rotuisolia and to my niece and nephew, Masilina Tehila Tuiloa and Malakai Ebenezer Tuiloa. I hope this thesis will instill in them the desire to continue pursuing their education. As Nelson Mandela once said and I quote “Education is the most powerful weapon which you can use to change the world.” i ACKNOWLEDGEMENT The completion of this thesis owes so much from the support of several people and organisations. It is with much gratitude that I would like to acknowledge their contributions, support, encouragement, guidance and assistance. For those whose names do not appear, please know that I am deeply grateful for your support and encouragement throughout this study. First and foremost, I would like to acknowledge the iTaukei Affairs Board, the provincial councils of Lau and Namosi, and the Yatu Lau Company Limited and the Namosi Development Company Limited, who welcomed this research and provided access to interviews on numerous occasions. Without their approval and contributions this research would not have been completed. The person to whom I owe a special debt of gratitude is my supervisor, Professor Michael White, who gave freely of his time and expertise in the various stages of this study. Whilst I often lost sight of my ability to complete the study, he never did; his constructive comments and words of encouragement sustained the study. To him I owe my thanks for his trust and patience. I am also grateful to the University of the South Pacific for providing the financial support to undertake this study. Furthermore, I also acknowledge and am grateful to the examiners of this thesis, Emeritus Professor Roger Hopkins and Dr. Eci Nabalarua, who both gave of their time to critically read and comment on this thesis. Finally, I am most grateful to my family who have always believed in me and encouraged me in completing this research. My gratitude is to my husband, Leone Tuisolia Rotuivaqali, and my beautiful daughters, Filomena, Fulori, and Losalini for their patience and continual encouragement throughout this study. I would also like to acknowledge my parents and grandmother for their words of encouragement and importantly for their prayers. ii Explanation of Terms and Abbreviations used in this Thesis AGM Annual General Meeting ANZ Australia and New Zealand Bank BLV Bose Levu Vakaturaga CCF Citizen’s Constitutional Forum CEO Chief Executive Officer CMDA Capital Markets Development Authority CPS Cash Payments Statement CRS Cash Receipts Statement DAS Development Assistance Scheme FAB Fijian Affairs Board FHL Fijian Holdings Limited LPA Lau Provincial Administrative office LPC Lau Provincial Council MIW Mucunabitu Iron Works Contractor Cooperative Society Limited NDC Namosi Development Company Limited NLTB Native Land Trust Board NPA Namosi Provincial Administrative office NPC Namosi Provincial Council OAG Office of the Auditor General OTC Over-The-Counter PBA Provincial Board of Assessment PCA Provincial Council Accounts SBU Small Business Unit SPSE South Pacific Stock Exchange TAB iTaukei Affairs Board YHL Yasana Holdings Limited YLC Yatu Lau Company Limited iii ABSTRACT Accountability is recognised as a vital facet of governance for any organization, as society needs to be kept aware of the performance of such organizations controlled by management on behalf of the people (Lodhia and Burritt, 2004). The purpose of this research project is to obtain insights into systems of accountability found in provincial councils and companies the councils have established in Fiji, utilising the accountability web framework (Gelfand et al., 2004). Research on this issue is important so that it can provide some insights on the accountability configuration within provincial council and company settings. This will assist in the understandings of factors affecting the current accountability framework and how accountability can be improved to raise provincial stakeholders’ confidence. In-depth case studies are undertaken for the Lau and Namosi provincial councils and companies in order to construct and analyse accountability webs for the four entities. The study provides insights into the systems of accountability practiced by provincial councils and how it has been able to influence the system of accountability of provincial companies. Analysis of the entities studied revealed accountability has been influenced by the power distance in society, high levels of trust placed on those in authority coupled with low self-accountability, the culture of respect and silence, and the lack of attention to detail and planning. This has resulted in weak accountabilities being provided to the provincial population. iv Table of Contents ABSTRACT………. ......................................................................................................... iv Chapter One - Introduction 1.1 Introduction ......................................................................................................... 2 1.2 Justification and Motivation for this study ...................................................... 5 1.3 Aims and Objectives ........................................................................................ 6 1.4 Summary and Organisation of Thesis ................................................................. 7 Chapter Two - Accountability and Culture: A Review of the Literature 2.1 Introduction .......................................................................................................... 9 2.2 Accountability: Summary of Theoretical Insights ............................................ 10 2.2.1 Definition and Concepts relating to Accountability .................................. 10 2.2.2 Forms of accountability.............................................................................. 13 2.2.3 Accountability Understanding – Indigenous Fijian Perspective ................ 20 2.3 Culture ............................................................................................................... 22 2.3.1 Cultural Dimensions .................................................................................. 23 2.4 Accountability Web (Gelfand et al., 2004) ....................................................... 26 2.4.1 Who are the ‘elements’ to be held accountable? ........................................ 27 2.4.2 How are the ‘elements’ connected? ........................................................... 28 2.4.2.1 Direction of the connection .......................................................... 28 2.4.2.2 Strength of the connection ........................................................... 29 2.4.3 Alignment in Accountability Webs ........................................................... 30 2.4.3.1 Structural alignment ..................................................................... 30 2.4.3.2 Web alignment ............................................................................. 30 2.5 Cultural Dimensions and Accountability Webs ................................................ 31 2.5.1 Individualism - Collectivism ...................................................................... 32 2.5.2 Cultural tightness - looseness ..................................................................... 35 v 2.5.3 Hierarchy-egalitarianism (power distance) ................................................ 36 2.6 Cultural Accountability Configurations ............................................................ 37 2.7 Accountability in Traditional Indigenous Fijian Society .................................. 40 2.7.1 Cultural Dimensions in Fiji ........................................................................ 41 2.7.1.1 Collectivism ................................................................................. 41 2.7.1.2 Large power distance/Hierarchical .............................................. 42 2.7.1.3 Cultural tightness/Strong uncertainty avoidance ......................... 43 2.7.2 Accountability Constructs in Indigenous Fijian Societies ......................... 44 2.7.2.1 Exploring Accountability within an Indigenous Fijian Business Context - MIW ................................. 45 2.7.2.1.1 Strong Group Accountabilities ......................................... 47 2.7.2.1.2 Weak Group
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