The cross examination of FICAC witness and former CEO of Fijian Holdings Limited Sitiveni Weleilakeba commenced this afternoon in the Laisenia Qarase court trial as the defense counsel raised the question on why only the FHL board resolutions were recorded in the minutes of the meetings.

Qarase’s lawyer Tupou Draunidalo said to Weleilakeba whether it would be correct to say that not recording the discussions prior to the board decision reached is a practice that is not good corporate governance.

Weleilakeba, who was the minute taker as FHL secretary, said this was done 20 years ago and the then chairman, the late Lyle Cupit, only wanted the board resolutions recorded.

Draunidalo also questioned Weleilakeba if he received any training on holding the position of company secretary.

Weleilakeba said he can confirm that he received no training in this area.

Qarase’s lawyer also said that it would be correct to say that they just have to rely on Weleilakeba’s words and assume that Qarase voted on all the resolutions brought forward to the FHL board.

Draunidalo also told Weleilakeba that he did not bother to record the discussions before a board decision or even if someone abstained from voting.

Weleilakeba replied that there was time given to the directors to correct anything in the minutes in the following board meeting.

Upon questioning, Weleilakeba also confirmed that all the applications for FHL shares by Qarase for Cicia Plantation Co-op Society Limited, Mavana Investments Limited and Q-Ten Investments Limited were attached with all the details when it was forwarded to the board for approval of allotment of the shares.

He also confirmed that in the application papers, Qarase was listed as a financial adviser for Cicia Plantation and as a director for Mavana Investments and Q-Ten Investments.

It was also confirmed by Weleilakeba that employees and board directors were not disallowed to purchase FHL shares at the time as they only had to meet the criteria which was that the person has to be an indigenous Fijian registered under the Vola Ni Kawa Bula, has money to purchase the shares and the person had to be part of 50 shareholders as the limit stood at 50 at the time.

Weleilakeba confirmed that the only other FHL board director who had applied to purchase shares was Joe Mar.

Upon questioning, Weleilakeba said he is unaware whether board members like Qarase were asked to get more indigenous Fijians into business and purchase FHL shares.

When questioned on whether the late Ratu Sir Kamisese Mara was part of the FHL board, Weleilakeba said Ratu Mara was only the architect of FHL but he never served as a board member.

However, he confirmed that in 1988, Ministers Navunisaravi, Josevata Kamikamica and Berenado Vunibobo were part of the FHL board.

He also confirmed that Reserve Bank of Fiji Governor Ratu Jone Kubuabola was also part of the board.


Story by: Vijay Narayan

Earlier Today:

FICAC’s senior counsel Michael Blanchflower this morning presented several documents during the Laisenia Qarase court trial showing some of the Fijian Holdings Limited dividend payouts in the early 1990s.

Blanchflower showed FICAC witness and former CEO of FHL Sitiveni Weleilakeba the minutes of the FHL AGM on September 30th, 1992, which was also attended by Qarase.

It was agreed in this meeting that the board pay out a dividend of $464,793.

The dividends were paid out on October 1st, 1992.

More FHL board papers from December 1987 to June 1992 were presented in court today where it was revealed that dividends were only paid for Class A shares.

In a FHL board meeting in March 1994, Weleilakeba confirmed that the board resolved to pay an interim dividend of $746,465 for Class A shares.

Qarase was not present in the meeting.

Fiji Development Bank documents indicate that a dividend of $40,000 was paid to Cicia Plantation Co-op Society Limited out of which FHL paid $22,000 to FDB and $18,000 to Cicia Plantation directly.

Another FDB account showed that $20,000 was paid to Mavana Investments Limted for the 200,000 Class A shares.

The money was paid to FDB for the company’s loan repayment.   
   
FDB documents also showed in court and confirmed by Weleilakeba that Q-Ten Investments Limited was also paid $20,000.

Weleilakeba confirmed that the three FHL signatories for the dividend account were the late former chairman Lyle Cupit, Qarase and Weleilakeba.

Blanchflower has already told the court that Q-Ten Investments is a company owned by Qarase’s wife and children, Mavana Investments is a company owned by some of Qarase’s family members and villagers where Qarase is from, while Cicia Plantation Co-op Society Limited is a company where Qarase was appointed as an advisor.

Qarase is charged with six counts of abuse of office and three counts of discharge of duty with respect to property in which he has a private interest.

It is alleged that Qarase applied, and then facilitated and allowed the purchase of Class A FHL shares for certain companies when he was director of FHL, financial advisor of the Fijian Affairs Board and advisor to the Great Council of Chiefs.

Stay with us for coverage of Qarase’s trial.


Story by: Vijay Narayan & Ronal Deo