A $20 million grant given to the Fijian Affairs Board in 1989 has now been converted into a loan.
The decision was made by cabinet after a submission by the Prime Minister, Commodore Voreqe Bainimarama.
Commodore Bainimarama said in 1989, Government provided a $20million interest free loan to FAB to help accelerate and broaden the participation of indigenous Fijians in commerce and business.
He said that in 2001, Cabinet agreed to convert the Loan to a grant and the relevant amendment to the Loan Agreement was likewise agreed to.
Commodore Bainimarama said that given the need to instill prudent and transparent financial practices in the use of Government revenue, it is imperative that the Loan which was converted to a grant in 2001 be recovered by Government and repaid to Government coffers.
The Prime Minister said that the FAB will remain liable for this loan.
Story by: Roneel Lal
