The Government of military leader Commodore Frank Bainimarama threatened to withhold $1.6 million in funding for its World Cup campaign unless the board and executive members of the FRU resigned over alleged mismanagement of a fundraising lottery.

The International Rugby Board (IRB) has warned Fiji that any contravention of its constitution could result in its expulsion from the world body and its exclusion from international rugby.

Besides the World Cup, Fiji would also be excluded from the HSBC Sevens World Series, an event they won in 2005-2006.

Suspension by the IRB would also attract the attention of the International Olympic Committee (IOC), who earlier this month voted to suspend Ghana because of Government interference.

Following the IRB intervention, the FRU  today refused to accept the resignation of its chief executive Keni Dakuidreketi, formerly the country's Sports Minister.

Board members had previously offered to resign en-masse ahead of the union's scheduled April annual meeting which has the power to elect and dismiss official.

The IRB warned Fiji that "in light of the prevailing circumstances that there should be no changes within the senior management structures of FRU."

In a letter to the Fiji union, the IRB also said a special general meeting scheduled for next Saturday (January 29), which would have considered the future of the Board in light of the military government's recent ultimatum, should not proceed.

The IRB warned "that any action in contravention of the constitution of the FRU will result in the Union potentially not remaining in good standing as a member of the Union of the IRB which may result in the IRB having to take a determination on the continued membership of the IRB of the FRU."

The notice of special general meeting has since been rescinded.

The IRB said chairman Bernard Lapasset and chief executive Mike Miller hoped to convene an urgent meeting with the current FRU Board early next month.

The actions of the military regime followed an investigation by the Fiji Commerce Commission of a lottery conducted by the FRU to raise funds for the nation's participation in the World Cup in New Zealand in September and October.

The investigation found that ticket sales and receipts could not be reconciled and that funds may have been used for purposes other than those advertised.

The IRB noted the Fiji union is contesting the commission's findings and said issues around the lottery should remain between the FRU and the Commission.

Fiji missed New Delhi because they have been suspended from the Commonwealth since September 1 2009 after it refused to commit to holding elections by October 2010.


Related stories
April 2010: Fiji lose CAS appeal against Commonwealth Games ban
March 2010: Fiji wait to hear whether they can compete in Commonwealth Games
December 2009: Fiji Government will not suffer because of Games ban says rugby
November 2009: Fiji threaten legal action over Commonwealth Games exclusion
November 2009: Fiji set to miss New Delhi but Rwanda to make debut