Fiji perform the Cibi. Photo: PHOTOSPORT
The Fiji Rugby Union Trustees Board has admitted the dire financial situation it has uncovered is far worse than initially thought.
Board chairman Peter Mazey told RNZ Pacific the rugby union has a near $FJ3.5 million (about $US1.7m) debt, and that funds have been used to keep a bank overdraft that ensures the union is able to operate.
Mazey said staff and management were reluctant to talk with them about the situation and there was lack of direction and corporate governance.
"Everybody was protecting themselves. There was a lack of direction and the lack of corporate governance as well," he said.
"It has been very hard to get disclosure from staff members; we have literally had to sit down personally and find out what we needed to know."
Trustee Board member Sikeli Tuinamuana, who fronted the Fijian media at Rugby House on Monday with Mazey and fellow board member Jenny Seeto, said their investigations over the past six weeks have revealed there are more debts and losses that were not recorded in the 2022 annual report.
Peter Mazey Photo: Supplied
Tuinamuana said they have been tasked to clean up the FRU system and put in place structures that would help direct the way forward for the union.
He said the investigation was being conducted to establish the facts and not necessarily to take people to task.
"But if there are criminal elements we will pass it on to the authorities," he said.
Mazey told local media they will be investigating funding, budgeting and approval of allowances for players.
"As advised the auditors were requested to review their report and that process is ongoing," he said.
"It is about interpretation and we have never said the auditors gave the wrong account. The current finance manager only began in late October and the Trustees and Administrator have only been in place one month."
Shock at what they found
Peter Mazey said they were shocked to find out the "scale of mismanagement" within the FRU and that funding was not managed well.
He said player allowances were supposed to have been paid with the amount of funding given to the national union.
Mazey said the FRU rakes in between $FJ22 million and $25 million per year.
He also stated the $FJ3.5 million debt has been compounded by the fact there are legal costs that need to be paid.
Mazey also revealed the situation has seen World Rugby losing faith with the local governing body.
"They have a mistrust of Fiji Rugby," Mazey said.
"The operations they have lost total faith in."
Mazey confirmed to RNZ Pacific last week they would need to look for funds to pay the members of the Fijiana national women's team who are still waiting for allowances from the 2022 Rugby World Cup and the 2023 Oceania Women's Rugby Championship.