Fijian cash crisis deepens

The Fijian lottery cash crisis deepened on Wednesday when Fiji Rugby Union chairman Bill Gavoka stepped down in the face of mounting pressure.

The move opened the door for negotiations between the FRU and the military-led government over vital funding ahead of the World Cup in New Zealand later this year.

Gavoka stepped down as chairman late on Tuesday, but would remain on the board, the FRU said in a statement.

The newly-appointed chairman, Kasibulu, said he was hoping for an urgent meeting with Minister of Sports Filipe Bole in a bid to resolve the lottery saga.

Hours after being elected to replace Gavoka, Kasibulu wrote to Bole seeking an audience in which he hopes to sort out the concerns raised by the Fiji Commerce Commission.

Kasibulu said the meeting should also discuss in detail the demands meted out by the Government which called for the resignation of the board and executive members.

Kasibulu, however, maintained the decision taken by the commission was swift and they were not provided the chance to reconcile the tickets to fully know its implication.

"We were not given the chance to reconcile the tickets and this will be something I will raise in our discussion with the Government," Kasibulu told the Fiji Times.

He said having to dismiss the board and executive members as demanded by the minister was a matter that would be discussed by the rugby council at the annual general meeting which was to be held in April.

"We have a process to follow and we will abide by that," said Kasibulu.

He said there was a lot of media hype about the lottery issue but there had never been a formal discussion between the two parties.

He said the F$3-million offered by Bole to assist the Fijians at the World Cup in New Zealand would be the prerogative of Government.

"Hopefully our meeting will resolve the matter amicably so that we can focus on preparing the team for the World Cup," he said.

Commerce Commission officials raided the union offices last week following an investigation into a lottery that was set up to raise funds for the World Cup.

The Commission said the FRU had sold lottery tickets for below the authorised price, had used funds for purposes other than the original purposes of holding the lottery and had not included some of the sold tickets in the lottery.

The Commerce Commission also said that about F$350,000 worth of tickets had been sold and there was a discrepancy of about F$156,000 in the Union's lottery account.

It also said some officials had used lottery funds for travel and tickets to Sevens tournaments in Britain and Hong Kong.

The FRU denies any wrongdoing, however, and said in an earlier statement its legal advice was that it was not against the law to discount tickets.

"In regard to the Fiji Rugby Union's [FRU] accounts there has been recent speculation inferring financial mismanagement which paints a bleak picture of the financial system adopted by the FRU," the statement said.

"The FRU wishes to assure its stakeholders, member unions and the public that its accounts are subject to an annual external audit. For the 2010 financial year, which ended on 31 December 2010, the FRU's finance division is in the process of compiling the accounts which will then be subject to audit by an independent external auditor.

"The audited account will be circulated to all member unions and will be tabled at the Annual General Meeting in April for discussion and adoption. A copy of the Accounts is always sent to the International Rugby Board, it being one of the major contributor's of FRU's funds.

"The FRU lottery account will form part of the 2010 Annual Accounts.

"As the matter regarding the lottery is currently before the Court, the FRU refrains from further comment on the subject."