People responsible for the Fiji National Provident Fund in the past whose decisions have resulted in the 327 million dollar write-off will be held accountable for their actions.
Fijivillage News has established that certain decisions were made in 2004 which resulted in an act passed in parliament that allowed the FNPF to invest in projects that may carry more risk.
A major question that needs to be addressed is why the FNPF board and those responsible in 2005 did not carry out the revaluing of it's investments, knowing that the auditors had made clear recommendations on the matter.
All the investments where the write-offs have occurred were approved from 2004.
In relation to Natadola where the biggest write-off has occurred, several issues have been raised over the years about how the project was handled.
Serious concerns were raised by the former Natadola Bay Resort Limited Chairman, Felix Anthony when he announced in 2007 that FNPF had decided to end the project and development management contract for Natadola Resort with Asia Pacific Resort International Limited or APRIL.
The project was delayed and at the time it was highlighted that the delay would cost about 60 million dollars.
The FNPF board in 2007 also expressed shock at the fees paid to the project managers of Natadola Bay, APRIL.
Anthony had said that in less than three years since April 2004, the company APRIL had been paid nearly five million US dollars just for project management or 143 thousand US dollars a month.
Momi Bay Resort is another project where FNPF injected 80 million dollars.
An auction was held last year by FNPF but the highest bidder was 41 million dollars.
FNPF decided that it should not sell at the price based on the investment dollars injected.
Since December 2006, the government has been assessing and monitoring the work of the FNPF, and stressing to members that every step will be taken to ensure that their funds are safe.
A major decision in line with this is the repatriation of offshore equity.
In 2007, the total funds repatriated were more than 140 million dollars.
Forensic accountants are now looking through various decisions and documents from previous years.
In relation to all the projects and decisions made by those responsible, Attorney General Aiyaz Sayed-Khaiyum confirmed that Australian accountants are now looking into the matter and those found responsible for any wrongdoing will be taken to task.
A total of 327 million dollars has been written off taking into account previous accounts that did not reflect the true position of the member’s funds.
The write-off of 327 million dollars is made up of 301 million dollars for Natadola, 18 million dollars from Momi and the balance being contributed by projects such as the Malt House Brewery, Savusavu Marina, Bay View Hospital, GPH and Fiji Hardwood Corporation.
Cabinet approves Natadola Bay Development Decree
Cabinet has approved the Natadola Bay Development Decree, which will ensure that FNPF's member’s funds no longer get eroded through the Natadola Project.
The announcement comes after the Fiji National Provident Fund announced it has written off 301 million dollars from the Natadola Project.
Attorney General Aiyaz Sayed-Khaiyum said the decree which is now in force will mean that the problems currently faced by the various subsidiaries of the FNPF in acquiring proper ownership and security to the developments by them, will no longer exist.
Sayed-Khaiyum said the decree cannot be challenged in court.
Sayed-Khaiyum added the implementation of the decree will mean that the FNPF will have the legal ability to carry out developments in Natadola without any obstruction.
He said that there could be a possibility of write backs into the member’s funds with the development of the balance of the land at Natadola.
FNPF confident of recovering Natadola investment
The government and the Fiji National Provident Fund has assured the members of the fund that they will now try to recover the Natadola Bay Resort investment following the $301M write-off in relation to FNPF's Natadola investments yesterday.
The write-off now gives the true and actual value of Natadola Resort, which is $84M.
FNPF chief executive Aisake Taito said the board is confident that money will be recovered in the next phase FNPF is planning to undertake.
Taito revealed that FNPF is now planning to sub-divide the land at Natadola Bay and sell them to recover the investment.
This follows the confirmation from Attorney General Aiyaz Sayed-Khaiyum that the Natadola Decree is now in place which gives full legal ownership rights to FNPF.
Attorney General Aiyaz Sayed-Khaiyum confirmed that the auditors had recommended the FNPF board from 2005 to carry out various write-offs to reflect the true value of FNPF's assets.
A total of $327M has been written off taking into account previous accounts that did not reflect the true position of the member's funds.
