May 21, 2019 Last Updated 5:09 AM, May 21, 2019

Post Fiji board criticized.

By Anish Chand

The Auditor General of Fiji has said insufficient number of board members with the required mix of skills, expertise and knowledge is required for Post Fiji Limited to operate efficiently and effectively.

In his report to Parliament, the OAG says Post Fiji only has two board members which limits effective decision-making and oversight. 

"The audit noted that currently the company’s Board is currently comprised of only two members which is not sufficient for good corporate governance," the audit says.

There is a high possibility that not having sufficient number of board members is preventing the Board from effectively exercising its roles and responsibilities, the OAG states.

Post Fiji Limited management has informed that the Board Chairman has also highlighted to the Ministry for the size of the board to be increased.

Meanwhile, an International Mail Logistic Company owed Post Fiji Limited $4,637,730 (US$2,270,000) at the time of audit in 2015.

This was 44% of Post Fiji's total receivable balance.

Audit noted that a mail logistics company based in Australia used the logo of Post Fiji Limited on its correspondence for their business dealings with various postal agencies around the world,

"There was no agreement between Post Fiji Limited and the mail logistic company for the use of company’s logo and there there was no Board resolution on the approval of use of company’s logo by the mail logistic company," the audit report states.

In absence of a contract agreement and board approval, Post Fiji Limited is faced with significant reputation risk should the mail logistic company fail to operate lawfully and ethically, says the OAG.

The logistic company has ceased using Post Fiji Limited as from March 2016 for this business after it took a more aggressive approach towards their debt collection. 

Post Fiji Limited will continue to pursue the outstanding debt with the logistic company, notes the audit.

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