As the Kadavu Provincial Council kicks off in Suva tomorrow, concerns are being raised now on how Kadavu House which has been funded through a 14 million dollar Fiji National Provident Fund loan is benefitting the province and the ordinary people of Kadavu.
The Qarase government had given a guarantee on the 14 million dollar loan that the government will occupy the house and pay a set amount of rent to the Holdings.
However in 2007 the Bainimarama government established that the rental agreed to was too high.
It also established that the company was not registered and the current government was also concerned on how some former SDL parliamentarians were directors of the Holdings.
It raised the question on who benefitted or are benefitting from the Affirmative Action Programme and whether the ordinary people of Kadavu would ever benefit from Kadavu House.
Fijivillage News has now established that Kadavu Provincial Council has not been given any returns from Kadavu House to date although the house has been fetching rent since 2007.
One of the former directors of Kadavu Development Company or KDC and former Kadavu Provincial Council Chairman, Ratu Josateki Nawalowalo confirmed that no returns have been given to the provincial council.
He also explained how FNPF granted the 14 million dollar loan through the assistance of the previous government.
Sources have revealed that some shareholders of Kadavu Development Company are not happy with the way the company has been run, and they are calling on the Board to hold the AGM to ascertain the true ownership of Kadavu House.
The source revealed that as shareholders they are concerned as to why there has never been no AGM for more than 20 years, adding they continue to be in the dark on how the company has been operating.
They are also calling for the restructure of the board to ensure that there is transparency.
Current major shareholders include the chiefs of the nine districts which are holding shares for their individual tikinas.
There are other individual shares including Nawalowalo and some former SDL parliamentarians.
Fijivillage News has established that based on the government agreement about 880 thousand dollars was paid to Kadavu Holdings for 5 months of rent in 2007.
The agreement was then severed and Kadavu Holdings found new tenants.
Meanwhile Prime Minister, Commodore Voreqe Bainimarama will open the Kadavu Provincial Council meeting at 9am tomorrow.
Where are the returns from Kadavu House?
Where are the returns from Kadavu House since 2007?
That is a major question that some of the stakeholders are asking as those involved also try to sort out the issue in relation to the ownership of the 8 storey Kadavu House.
At this point, some stakeholders have told Fijivillage News that Kadavu House is managed by Kadavu Holdings Limited.
Kadavu Holdings was set up by Kadavu Development Company.
The company also known as KDC was formed as a business arm of the Kadavu Provincial Council.
With rental for Kadavu House being paid since 2007, Fijivillage News has established that no returns have gone to the provincial council and towards the development of the people of Kadavu.
Former Chairman of the Kadavu Provincial Council and a former director of Kadavu Development Company, Ratu Josateki Nawalowalo confirmed that no returns from Kadavu House have been given to the provincial council since 2007.
When Fijivillage News questioned Nawalowalo on where is all the rental income from Kadavu House since 2007, he said he does not know as he is no longer a director of Kadavu Development Company.
The stakeholders are now trying to determine whether Kadavu House which was built through a FNPF loan is owned by the Kadavu Provincial Council.
The government ended the Memorandum of Agreement to occupy the house in 2007 after issues arose about the high level of rent agreed to by the Qarase government.
Questions were also raised at the time about the ownership of Kadavu House, how the people involved got the loan and whether it was truly an effective Affirmative Action programme and would benefit the ordinary people of Kadavu.
The Kadavu Provincial Council meets this Wednesday and Thursday while the Kadavu Development Company meets on Friday.
Fijivillage News pointed out the government's concerns in 2007 when it brought up the issue that a number of individuals who were not part of the provincial council were sitting as directors of the company.
Nawalowalo agrees that the government was seriously concerned about this issue as the FNPF loan was granted based on the connection to the provincial council.
