Following cabinet's announcement to convert the $20 million government grant to the Fijian Affairs Board to a loan, Fijian Holdings Limited has today confirmed it has approved the $20 million loan to the FAB.
FHL managing director Sereana Qoro said this loan to the Fijian Affairs Board is to assist FAB in the payment of the $20 million government loan that was used by FAB as equity investment in Fijian Holdings Limited in 1991.
Qoro said since the acquisition of Class B shares, Fijian Holdings has already paid $24.75 million in the form of dividends to FAB and the Fijian Trust Fund.
She said the actual terms of the loan agreement are purely commercial in nature and are expected to be finalized with FAB next week.
Prime Minister Commodore Voreqe Bainimarama earlier said that in 1989, the government provided a $20 million interest free loan to FAB to help accelerate and broaden the participation of indigenous Fijians in commerce and business.
In 2001, the then cabinet headed by Laisenia Qarase agreed to convert the loan to a grant and the relevant amendments to the Loan Agreement were agreed to.
Commodore Bainimarama said given the need to instill prudent and transparent financial practices in the use of government revenue, it is imperative that the $20 million loan be recovered by the government and repaid to its coffers.
He confirmed that the FAB will remain liable for this loan.
By: Vijay Narayan
