----- Original Message -----

From: R.G.(Bob) Lyon

To: Ajay Raniga ; Bob Penn ; Lesley Phillips ; Paula Greenville ; Jody Matulic ; Phyllis Williams ; Lester Haycock ; Max Storck ; sharmaarchitects@connect.com.fj ; Caesar Lateef ; Gerald Barrack ; Rob Wade

Sent: Wednesday, March 04, 2009 11:05 AM

Subject: Fw: DREL

 

Bula

 

See attached letter to DCL/Tabua below. As you can see we are planning to hold a residents' meeting for Denarau Owners Group at the Community Hall on Tuesday 14 April commencing at 2:00pm. This will be an important meeting to discuss the findings of the due diligence conducted by BDO. I hope to have a soft copy of their report in the next day or so and will forward it to you.

 

Can you please contact all owners on your precinct to advise them of the foregoing. I will also arrange to post on the website.

 

Vinaka

 

Bob 

----- Original Message -----

From: R.G.(Bob) Lyon

To: Brian Legge ; Peter Nicholas

Cc: Ajay Raniga ; Bob Penn ; Lesley Phillips ; Paula Greenville ; Jody Matulic ; Phyllis Williams ; Lester Haycock ; Max Storck ; sharmaarchitects@connect.com.fj ; Caesar Lateef

Sent: Wednesday, March 04, 2009 10:56 AM

Subject: DREL

 

Dear Brian & Peter

 

We have just received a draft report from our accountants, BDO, on their due diligence of the DREL accounts. The report is very critical of the standards applied by Tabua Investments Limited who look after the accounts through their fully owned subsidiary. The funds in these accounts are essentially held in trust for the residents and we would have expected more care in the running of the accounts. There are problems with accounting standards, governance and transparency. There have been wild fluctuations in amounts from year to year and so far, unsatisfactory explanations from the accountants KPMG. 

 

It is quite some time since we have been provided with audited accounts for DREL and there has been no consultation on budgets or expenditure. We know that unpaid rates is a concern for all of us, but believe that more can be done to resolve this issue and we will deal with this separately. One urgent matter is to ascertain the owners of about $40,000 in unallocated receipts held in the accounts. My own experience with KPMG tells me that not enough effort has gone into this and that by going back to the source, usually a bank, it can be sorted out quickly.

 

Until we receive BDO's final report and we are comfortable with the situation, we ask that no large payments are to be made from the DREL account. We also request a copy of the engagement contracts for Matrix Security and KPMG. 

 

We have called for a meeting of all residents for 14 April to discuss the BDO findings. Following this meeting, we would like to take responsibility for the DREL accounts, say from 1 May 2009.

 

Can you please confirm the items in the preceding two paragraphs.

 

Yours sincerely

 

 

R.G.(Bob) Lyon

Chairperson The Cove

Spokesperson for Denarau Owners Group