Fiji Independent Commission Against Corruption An t i - Gr a f t Ne w s THE FIJI INDEPENDENT COMMISSION AGAINST CORRUPTION

ISSN 2076-3026 Volume 1, Issue 2 October - December 2009 ! Open Day held to celebrate International Anti-Corruption Day December 9th is International Anti-Corruption Day, as presentation by the Manager Community and Education designated by the General Assembly. This day presents an Department on the roles and functions of FICAC. Public annual opportunity to raise awareness around the world response was overwhelming as FICAC Customer Services about the effects of corruption and ways to fight it. staff recorded its highest number of complaints received in one day. They had heard The theme of this year’s UN our radio advertisements and Office on Drugs and Crime talkback shows or had seen (UNODC) celebrations and the advertisement in one of the awareness programme is local dailies. focused on the Millennium Development Goals, which Manager Investigation, includes : opened the day on behalf of education, development, pros- the Deputy Commissioner who perity and public health. was abroad. He said the Open Day was intended to help each To commemorate the day, individual, understand that we FICAC held an Open Day con- all have a personal responsibil- sisting of display booths, the ity to end corruption, because launch of television advertise- corruption hurts everyone, but ment, Anti-Graft News (news- mostly it affects the poor. He letter), educational posters, A senior citzen looking at displays at the Open Day concluded with the United 2010 calendar, Fijian language Nations Convention Against brochures. A crowd pleaser was the awareness power point Corruption slogan: Corruption – Your NO Counts.

New Senior for FICAC FICAC is fortunate to have secured the expertise of two gional Crime and Research Institute (UNICRI). In senior Prosecutors from . They bring with them the above capacity he was involved in training of over 12 years of experience in the legal profession. in Bosnia & Herzegovina on War Crime Prosecutions and he co-compiled a manual of best practices in prosecut- Mr. Madhawa Tennakoon holds a Masters of (LLM) ing international crimes. He is also a visiting lecturer in from the University of Turin, Italy in International Criminal the Centre (CSHR) at the University of Law. He has over 12 years of experience as a State Colombo. () in the Attorney General’s Department of Sri Lanka. He has extensive experience in and Mr. Nawarathne Marasinge has worked as a State Coun- Human Rights law. He has handled a wide range of crimi- sel for the Attorney Generals Office for 11 years and has nal prosecutions including Fraud and Corruption, in addi- prosecuted a number of fraud and coruption cases in the tion to defending state officials before the Supreme of of Sri Lanka. He obtained a Bachelors degree Sri Lanka, in violation of fundamental human rights cases. and Masters of Law (LLB, LLM) from the University of Colombo in Sri Lanka. He has attended workshops and Mr. Tennakoon has served as a Consultant on “Interna- short courses in France, Italy, Canada, Malaysia, Australia, tional Criminal ” at the United Nations Interre- USA and Thailand.

IN THIS 2 - 3 4 - 5 6 7 FICAC News Community Updates Financial Forensics Legal ISSUE:www.ficac.org.fj December 2009 Fiji Independent Commission Against Corruption Fiji Independent Commission Against Corruption

BACKGROUND ON FICAC The Fiji Independent Commission Against Deputy Commissioner’s Corruption is mandated by FICAC Promul- gation No. 11 of 2007. Its aims are to protect Message public interest, prevent breaches of public trust and guide the conduct of public officials. Our achievements in the last quarter of 2009 were overwhelming. The primary objectives of the are to promote the integrity and accountabil- Despite the limited resources at our disposal and the enormous tasks at ity of public administration through the estab- hand, we were able to meet our work plan targets for the year. lishment of FICAC to: Our offices in Suva, Lautoka and Labasa registered complaints total- • Investigate, and prosecute corruption ing 1558, of which 1077 was resolved amicably and 7 prosecuted in the and bribery related cases, . • Examine and advise government of its practises and procedures that are condu- FICAC is very pleased to note a steady increase in the reporting of cor- cive to corruption and ruption and the support from the general public and parties concerned. • Educate and enlist public support in com- bating corruption This is testament to the fact that the Fiji public is slowly beginning to appreciate and recognise the sterling work the organisation is doing, Although FICAC is a statutory independent with the support and dedication of its hardworking staff, in ensuring investigative body, it is accountable to the that we work towards having a corruption-free society. people of Fiji through His Excellency, the President. Our Customer Services Team continue to receive numerous complaints on a daily basis and despite the limited resources and manpower, we ensure their complaints and grievances are resolved.

Our Community and Education Teams have generated good response ANTI-GRAFT NEWS through their awareness programmes and this could be attributed to the Anti-Graft News is the official newsletter of large number of complaints received. the Fiji Independent Commission Against Corruption. In recent months there has been an increase in complainants coming in person to lodge their complaints and this is an indication of members of It is a quarterly publication produced by the the public having confidence in FICAC. Community and Education Department with articles from other Departments of FICAC. As a result of the large number of complaints received we have gone out- side our Promulgation to assist complainants to ensure their grievances To receive a copy of Anti-Gaft News, contact: and complaints are addressed with most expressing satisfaction with the outcome. Fiji Independent Commission Against Corruption FICAC will continue to assist the public and work hand in hand with rel- Rev John Hunt House evant agencies to tackle corruption and the onus is on every individual to 3 St Fort Street ensure that corruption is reported and not condoned. P.O.Box 2335 Government Buildings Suva, Fiji

Phone : (679) 3310152, (679) 3310149 Statistics for 4th Quarter of 2009 Fax: (679) 3310297 Email: [email protected] Location Suva Labasa Lautoka Complaints received 539 564 455 www.ficac.org.fj Complaints Resolved 303 422 352 Cases Prosecuted 3 1 3

2 December 2009 Ensuring our citizens live a life free of Corruption Fiji Independent Commission Against Corruption Fiji Independent Commission Against Corruption

MOU with Financial Intelligence Unit Anti-Corruption Views “I find it difficult to understand how executives in the modern world could possibly have no knowledge or awareness of anti- corruption. What does that say about the culture and sustain- ability of the business organisa- tion? And indeed whether it is an attractive place in which to work. People want to work in organisations that have moral standards and a commitment On 3rd November 2009, the Fiji corruption in Fiji and also adds to to ethics. A corporate’s image is Independent Commission Against strengthened border control. inevitably and rightly tarnished Corruption signed a Memoran- when it is seen to be involved in dum of Understanding with the Fiji Director FIU Razim Buksh said corrupt activities. As individuals Financial Intelligence Unit. coming into network with FICAC we do not want to live in a soci- would strengthen their respective ety where corruption flourishes: FICAC anticipates improved col- roles and responsibilities and collec- why therefore do we consider lection and better management of tively strengthen the investigation and that it is acceptable for others to information that the two agencies prosecution of white collar crimes, live in such a society?” will share. This will lead to better- money laundering and corruption. resourced investigation and pros- * Extract from the speech of the ecution. FICAC has an MOU with the Fiji Director, Serious Fraud Office, Inlands Revenue and Customs Mr. Richard Alderman at the 4th The MOU strengthens FICAC’s com- Authority and plans to sign more with ICAC Symposium on 15 Decem- mitment in eradicating all forms of other agencies in the coming year. ber 2009.

Deputy Commissioner in Hong Kong for Course & Symposium

The Deputy Commissioner, Mr. versary of the organisation’s establish- impact of corruption in business on George Langman, was in Hong Kong, ment. The ICAC is the oldest Anti- the global community. China to attain a Postgraduate Certifi- Corruption Agency in the world. cate in Corruption Studies from Hong He said the present financial crisis Kong University. The title of the symposium was Deals has brought to Hong Kong the extent under the table – the doing or undo- to which the world is now a univer- The programme provides capacity ing of business? sal economy. building for all practitioners and pro- fessionals in anti-corruption and law The symposium was co-hosted by the He added that the ICAC recognized enforcement agencies, justice depart- European Anti-Fraud Office (OLAF). the importance of forming strategic ments, regulatory bodies, accounting OLAF is an organization whose mis- partnerships in the international and legal practioners from around the sion is to protect the financial interests arena to more effectively combat world. of the European Union and its citizens corruption. against fraud, corruption and any After completing the course, the other illegal activities. Eminent experts from anti-corrup- Deputy Commissioner represented tion and related fields shared their Fiji at the 4th Annual Hong Kong The Commissioner of the Hong Kong knowledge in combating corruption ICAC Symposium. The symposium ICAC, Dr. Timothy Tong said that the and there was an exchange of views was held from 15th – 17th December aim of the symposium was to help on the importance of ethics in the 2009, to commemorate the 35th anni- individuals focus their minds on the business place.

www.ficac.org.fj December 2009 3 Fiji Independent Commission Against Corruption Fiji Independent Commission Against Corruption

Community and Education

The Community and Education Department is tasked with educating and creating awareness about corruption and its related offences through effective use of the media and awareness programmes. The Department also handles all complaints lodged by the public via correspondence, complaints lodged on the website and those received in person. This department is the first point of interaction between the public and the Commission. It is important to ensure that complainants are satisfied with the services provided by the Commission.

A report by the Education and Awareness Officer, Maraia Vavaitamana-Koroilavesau

FICAC achieved a milestone in 2009 as we made presentations to a large number of target audience which numbered up to more than 4000 individuals.

With our focus on secondary schools, tertiary institutions, government departments, Public Service Commission work- Maraia . K talks to the Coral Coast Carnival Contestants shops, provinces, villages and various community groups, the presentations were customised to suit the audience.

In the fourth quarter we conducted presentations in the following institutions and workshops:

Date Organisation/Workshop Location Oct 1 Public Works Department Labasa Oct 1 PSC Workshop – Leadership, Governance & Change Labasa Oct 5 Agriculture Labasa Oct 29 National Fire Authority Labasa Oct 30 National Fire Authority Savusavu Dec 1 Rotaract Club of Suva Suva Dec 4 Fiji School of Medicine final year students Suva

Prison Officers attend an education and awareness session Suva Grammar students picking up promotional material from the conducted by Manager Community and Education FICAC booth at the Public Service Commission week A point that we normally stress during presentations at government departments and Public Service Commission work- shops is that “Ignorance of the Law” cannot be used as an excuse to commit corrupt activity. It is assumed that all public servants are aware of and thoroughly understand the policies that govern their respective sections, departments, minis- tries and the public service as a whole.

We also inform them of the various ways in which they themselves can become ‘corruption fighters’. There is always a slot in these presentations in which participants are encouraged to share their experiences in witnessing corrupt activi- ties in their workplace and the actions taken to address it.

Our activities were not only limited to conducting presentations but also included our participation in events like the Coral Coast Carnival and the Public Service Commission week. Such events are very important to us as they ensure a greater coverage in terms of reaching out to people who may not have had the chance to learn about FICAC. Our partici- pation at the Coral Coast Carnival saw people from the Sigatoka and Nadroga areas visit our booth. A press release was

4 December 2009 Ensuring our citizens live a life free of Corruption Fiji Independent Commission Against Corruption Fiji Independent Commission Against Corruption

sent to different media agencies informing them of FICAC’s presence at Lawaqa Park. Some individuals came to lodge their concerns while others were curious to learn about issues pertaining to FICAC and our anti-corruption efforts.

The Public Service Commission week was equally successful. This served as a platform for FICAC to disseminate informa- A report by the Education and Awareness Officer, Maraia Vavaitamana-Koroilavesau tion to public servants, as all Ministries participated through- out the 3 day event. School students and members of the public used the opportunity to visit the FICAC booth seeking information about the Commission.

Maraia . K talks to the Coral Coast Carnival Contestants It was interesting to note that a handful of students enquired about the different career paths in the Commission and the qualification requirements needed for fields like Investiga- tion, Legal and Prosecution.

Our dynamic outreach into the Provincial areas and villages were well appreciated and the feedback received from the participants was positive. In the fourth quarter, we visited villages in the provinces of Ba, Nadroga and Tailevu. Our team firmly believes that it is through this initial wave of awareness that people are beginning to sit up and take note of the very important role that FICAC plays in Fiji. FICAC cannot combat corruption on its own; we need the support of the people of Fiji.

Plight of the public Even though FICAC is promulgated to investigate corruption cases, its Customer Services team receives general com- plaints from members of the public who have exhausted all avenues in addressing their complaints. Customer Serv- ices assist the public by offering an alternative through dialogue and discussion between parties involved in a complaint. Below are a few cases that have been successfully resolved through this mechanism:

1. Non Release of super annuation Funds A widow whose husband passed away on 19/08/08 lodged a complaint against a super annuation institution for not releasing funds belonging to her late husband. The first lot of payment was made to her on December 2008. The second lot of payment was the deduction from Annual Leave, Gratuity payment and other leave. She applied for the second lot of payment on 11/08/09. She paid them a visit in September and after numerous follow-ups was told to re-lodge her application. She re-lodged her application and was informed that her application was being processed and the outcome would be known on 11/11/09. FICAC enquired with the institution on 11/11/09 and was advised that the complainant had received the funds.

2. Non Refund of School Fees A complaint was received by FICAC against the Management of a tertiary institution, regarding the non refund of school fees. The complainant stated that a partial withdrawal of $1593 was made from her husband’s FNPF Educa- tion eligibility. She paid $1593 in 2007 for a $200 Office Assistant course and the balance had not been refunded. The Administrator was giving a lot of excuses and she sought FICAC’s assistance in recovering the balance as the funds was needed to pay off her children’s USP fees to enable them to sit exams. A call was made to the institution on 11/11/09 regarding the above and an official confirmed that arrangement had been made for the refund. The complainant later confirmed a cheque of $1800 was made to her.

3. Connection of Water Meter A complaint was lodged at FICAC against an Engineer for delaying the connection of a water meter despite the full payment being made for a new connection. The complainant made the payment on 07/08/09. A call was made to Water Supply on 08/10/09 and a employee from the department informed FICAC that the complainant’s application was with the Water Meter Department awaiting the endorsement of the Engineer. On the same day the complainant called FICAC stating that a new meter had been installed at his residence.

www.ficac.org.fj December 2009 5 Fiji Independent Commission Against Corruption Fiji Independent Commission Against Corruption

Demystifying Financial Forensics By Manager Finance, Mr. Anil Maharaj and Financial Investigator, Balmindar Singh FICAC Financial Investigaton sec- Forensic auditing helps identify vulner- Furthermore, the attribution of cre- tion is made up of Accountants with abilities in financial control or an exami- dential therefore is no denying the years of Financial Auditing experi- nation of an institution’s/individual’s fact that financial investigation find- ence, however they have recently economic affairs, resulting in formulat- ings are reported to bring out a wealth become more skilled and better ing a report that could be admissible as of detail, instances of individual or informed about how to detect white especially in a court of law. It is systematic fraud and corruption. collar crimes. Management nomi- an enormous task to detect a white-col- nated Financial Investigators Mr. lar financial impropriety (mis-applica- It also plays an important role for Anil Datt Maharaj, Mr. Arvind tion, mis-statement) and inappropriate Statutory bodies under review by Kumar, Mr. Balmindar Singh and or inefficient use of resources. regulatory authorities that ensure Mr. Umit Singh to attend the first compliance of certain . Forensic Accounting Course held at Forensic audit and examination encom- Hence, detecting and recording the University of the South Pacific, pass a sound base of factual information potential conflict of interest for exec- Suva campus. The course was con- that could be used to help resolve dis- utives improves transparency and ducted by Mrs. Helena Mitev a Cer- putes, and can be used in court should probity in the way resources are used, tified Fraud Examiner and current the victim seek legal redress. in public entities. Whilst a pitfall is lecturer at the University of Tasma- that management and civil servants nia in Australia. Further it improves institutional effec- need to act more responsive and take tiveness and efficiency by identifying a structured approach for good gov- What is Financial Forensics? areas of wastage and by adding value to ernance, transparency and account- Forensic Accounting or Auditing can the resources at their disposal. It pro- ability, suggestions can be made but be defined as the science of gather- tects against potentially catastrophic they need to take the initiative to act ing and presenting financial infor- one-off events that could threaten the upon the implementation of the audit mation in a form that will be accept- viability of the business. Even smaller- findings which indicates a cause for able by the court of law against per- scale but repetitive misappropriation of concern in the adequacy of internal petrators of economic crimes which company assets over a number of years controls. has increased dramatically. can be detrimental to any business.

Top tips for Investigators and Prosecutors Investigators and Prosecutors were privileged to Code, the FICAC Promulgation and Prevention of Brib- undergo training from former High Court , Nazhat ery Promulgation. Shameem at a one-week workshop. Guest speakers were from the Lands Department, Fiji The Intensive Prosecution and Investigation Workshop Inlands Revenue and Customs Authority, Public Serv- was held at the Outrigger ice Commission, Criminal Hotel in Sigatoka from 13th Investigation Department – 17th October 2009. - Fiji Force, Registrar of Titles, Ministry of Finance The objective of the work- and Ms Helena Mitev, a shop was to increase the Financial Forensics expert capacity of FICAC to inves- from Australia. tigate, prosecute and build on professional investiga- The workshop included tion and prosecution skills. training of prosecutors under It focused on governmental a “mock ” system to build procedures, governmen- on advocacy skills and litiga- tal financial processes, the tion expertise. This helped powers of investigation and build the confidence of the prosecution under the Penal FICAC staff in a group discussion during the workshop FICAC prosecutors.

6 December 2009 Ensuring our citizens live a life free of Corruption Fiji Independent Commission Against Corruption Fiji Independent Commission Against Corruption

Senior Hydrologist sentence appealed

FICAC filed an application for leave to time, then he could ask his In sentencing, Hudson a ruling delivered in the Suva to file an application for more time. said that the accused had abused his Court on 31st December She added that if the accused were to office by gaining benefits from his 2009. reoffend within the next 24 months, poor subordinates. then the suspended sentence would FICAC prosecutor Aca Rayawa asked no longer apply. She said that although Finiasi had Magistrate Elsie Hudson to also put a changed his plea and said he would stay on the ruling that she had handed Mr. Rayawa asked Magistrate repay the money, she did not give down to former Senior Hydrologist of Hudson how she arrived at that fine him any credit for this saying that the the Suva Water Department, Faga and what method she used to calcu- courts time was wasted in a two-day Solomone Finiasi. late this. trial and costly to the state.

Magistrate Hudson granted the appli- Magistrate Hudson replied that she On 1st September 2008, Finiasi cations made by the prosecution. separated the 24 months from the 40 was charged with 10 counts of Offi- months because she wanted to sus- cial Corruption that he pleaded not Finiasi was sentenced to 40 months pend the sentence but the law does guilty to and later changed on the imprisonment in which 24 months not allow her to pass a suspended conclusion of the trial saying that he was suspended and the remaining 16 sentence that was over 24 months. now wished to repay the money. converted into a $500 fine. She did not wish to elaborate any fur- He had corruptly obtained money She gave him three months to pay ther on her sentencing stating that if from subordinates working overtime this fine and stated that if he could FICAC did not like the sentence, they in various projects between 2005 not pay the amount within the stated had 28 days to appeal. and 2006.

Assessment of Complainants A report by Legal Assessment Officer, Elenoa Leweni

As indicated by it’s name FICAC was established to inves- vate individuals it is usually advised that the complainant tigate and prosecute corruption cases. Corruption encom- engages independent legal advice on the matter. passes a number of offences in the Penal Code and in the FICAC Promulgations. Corruption offences are criminal As for complaints criminal in nature it is assessed and an in nature which means FICAC is limited in its powers to advice is forwarded to our Deputy Commissioner for his investigate and prosecute. appropriate action.

Limited in the sense that FICAC only has the For complaints to be properly assessed it is crucial that all to investigate and prosecute complaints which are criminal documents proving the allegations in the complaint are in nature and show an abuse of power or authority. “The made available to us from the very beginning. Some com- abuse” which may take many forms depending on the situ- plaints that we have received come by way of letter and no ation and individuals involved, is the essence of corrup- other documents to support the allegations being made in tion. Apart from corruption cases, FICAC investigates all the letter. As such most complainants are advised to pro- fraud related offences. When we receive complaints that vide us with more proof of their allegations before we are fall within the above description it is usually recommended able to properly assess the allegations being made. that an investigation is made. It is due to the need for supporting documents that the However all complaints are assessed and filtered into two process of assessment can become lengthy. Properly categories these being civil and criminal. The civil com- assessing these documents and keen attention to detail is plaints are usually referred to the appropriate authorities an essential part in assessments, however it can only be who are better equipped to deal with the particulars of the done if the complainants themselves provide us with the complaint. If the complaint is one that involves two pri- supporting documents needed.

www.ficac.org.fj December 2009 7 Fiji Independent Commission Against Corruption

UN Chief sees corruption as major impediment to advancing development

UNITED NATIONS, Dec. 9 we have seen over the last year, it can themselves up to peer review to (Xinhua) -- UN Secretary-General also have a serious impact on the inter- ensure that everyone is playing by Ban Ki-moon said on International national financial system.” the same rules.” Anti-Corruption Day, that corrup- “Fortunately, there is a way to fight “We all have a part to play. On Inter- tion kills development and is one back,” he said. “The United Nations national Anti-Corruption Day 2009, of the biggest obstacles to achieving Convention against Corruption is the I urge all people to join the UN the globally agreed targets to reduce world’s strongest legal instrument to anti-corruption campaign at www. poverty, hunger and other social ills build integrity and fight corruption.” yournocounts.org. And I encourage by 2015, also known as the Millen- everyone to make a pledge: never to nium Development Goals (MDGs). “A new mechanism decided on at the offer or accept a bribe,” he said. “Live recent Conference of States Parties in by that motto, and the world will be “When public money is stolen for pri- Doha means that, from now on, states a more honest place -- and we will vate gain, it means fewer resources will be judged by the actions they take increase the chances of reaching the to build schools, hos- Millennium Development pitals, roads and water Goals.” treatment facilities. When foreign aid is Meanwhile, the execu- diverted into private tive director of the UN bank accounts, major Office on Drugs and Crime infrastructure projects (UNODC), Antonio Maria come to a halt,” Ban said Costa, paid tribute to in his message on Inter- “heroes with integrity: anti- national Anti-Corrup- corruption officials who are tion Day, observed on not afraid to go after the big Dec. 9 annually. fish; whistleblowers who to fight corruption, not just the prom- risk their jobs to expose The theme of this year’s observance ises they make,” the secretary-general cheating; journalists who risk their is “don’t let corruption kill devel- said. lives to investigate fraud and report opment,” and highlights one of the the truth; prosecutors who defend biggest impediments countries face “The private sector should not lag justice, even when under attack from in their efforts to reach the MDGs. behind governments. Businesses must powerful forces.” also prevent corruption within their “Corruption is not some vast imper- ranks, and keep bribery out of tender- Through its Global Programme sonal force. It is the result of per- ing and procurement processes,” he against Corruption, the Vienna- sonal decisions, most often moti- said. “I urge the private sector to adopt based UNODC assists states with vated by greed,” he said. anti-corruption measures in line with vulnerable developing or transitional the UN Convention. Companies -- par- economies by promoting anti-cor- “Development is not the only casu- ticularly those that subscribe to the ruption measures in the public and private sector, including in high-level alty. Corruption steals elections,” he 10th principle of the Global Compact, financial and political circles. said. “It undermines the . to work against corruption -- should And it can jeopardize security. As pledge not to cheat and should open Source: www.chinaview.cn

Suva Office Labasa Office Lautoka Office Rev. John Hunt House Top Floor 14 Tavewa Avenue, 3 St Fort Street Post Fiji Building P. O. Box 7106 P. O. Box 2335, Govt Bldgs P .O. Box 9 Lautoka, Fiji Suva, Fiji Labasa, Fiji Phone: 6668093 Phone: 3310290, 3310291, 3310149 Phone: 8816793 Fax: 6669083 Fax: 3310297 Fax: 8816792

8 December 2009 Ensuring our citizens live a life free of Corruption