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CI Times Weekly | Current Issue 266 | 01 September 2008

Audit Office report Tapi’s in the clear

Following a review, the Audit Office has concluded that allegations in a complaint by a member of the public against Tapi Taio Chairman of the Board of the Cook Islands Investment Corporation in relation to the purchase and removal of the Ministry of Education building in Nikao, cannot be substantiated. There is no evidence of any wrong doing on the part of Taio.
The building was removed to make way for the construction of the new indoor Multi Sports Complex.
Tapi Taio advised the Times of the Audit office’s findings on Friday afternoon.
Taio said the complaint made back in July alleged that he took materials from the demolished education building for his own personal use and that these materials had not been tendered out to the public for resale and did not follow a transparent process.
Taio said his son lodged the tender on behalf of Taio Construction Ltd a company which he (Taio) owned. Taio said he was overseas at the time the tender was lodged by his son and he did not take part in any decision to award the tender to Taio Construction. He said the decision to award the tender was made by the CEO of CIIC.
The CIIC had advertised the tender in the media over four days. The tender box was opened at the Audit Office in the presence of CIIC and Audit staff. Only one tender was in the box and no other tenders were received. Although another company had expressed an interest, it did not submit a tender.
Taio said the amount tendered was $8,000 but this was revised upward by the CEO of CIIC to $10,000. This is what Taio Construction paid.
The CEO evaluated the tender alone. As only one tender was received, there was no need under the Financial Policy Manual to form a tender evaluation team.
Taio said Audit Office was satisfied that the CEO took the appropriate measures and they did not find any evidence to suggest the CEO was biased towards Taio Construction.
Taio said the review report found he did not have a conflict of interest in this matter as he did not take any part in the decision to award the tender to Taio Construction Ltd.
Taio said he did not take the whole building for himself. It was divided into four parts when it was taken from Nikao. Taio said members of the public asked if they could have parts of the building for their own use. He said he agreed to give away parts free of charge as goodwill to individuals in need. One part he gave to one of his employees, whose house was burnt. Also Hon Ngamau Munokoa asked if she could have a part so the materials could be used to help repair and restore homes damaged in the freak storm
in Nikao. One part was given to a brother and the last part was given to Ruaau MP Smiley Heather.
Taio said Audit Office reported that the decision made by CIIC was fair, reasonable and justified given there was only one tender. Audit also said there was no evidence to suggest Taio influenced the CIIC decision and there was no conflict of interest on his part.
Audit Office said Taio has made recommendations to the CIIC CEO and Finance Manager with regard to the setting up of a tender evaluation team to develop, document and manage the tender process.
Taio said he was very disappointed with the allegations made against him as most of the building materials were given to people in need at no cost except to himself.
Note: Information concerning the Audit Office review has come from Mr Taio. The review report itself will become public when tabled in Parliament. Parliament is due to resume around the middle of September.