July 01, 2010

The Hollow Echo of Empty Government Coffers

FBC yesterday released a fascinating story about Fijian Holding and the Fijian Affairs Board:

FAB and Fijian Holdings to pay back $20 million grant
Wednesday, June 30, 2010
The Fijian Affairs Board and Fijian Holdings Ltd is now required to pay back the $20 million that was given to them by government 21 years ago. 
Government gave the $20 million interest free loan to the Fijian Affairs Board in 1989 to help accelerate and broaden the participation of indigenous Fijians in commerce and business. 
The FAB injected the $20 million loan into Fijian Holdings Ltd to enhance Fijian business. 
In 2001, a Laisenia Qarase-led government agreed to convert the Loan to a grant and the relevant amendment to the loan agreement was agreed to. 
However today, Cabinet under Prime Minister Commodore Voreqe Bainimarama agreed to convert the grant to the FAB back into a loan.
Bainimarama says 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 and repaid to government coffers. 
He says the FAB will remain liable for this loan.
If you check out the emboldened paragraphs, many interesting tidbits arise.

First of all Qarase's very controversial loan then grant to Fiji Holdings has now being reversed to a loan by the illegal and treasonous Cabinet.

OK so FJD$20million of taxpayers money (without interest) is now owed by Fijian Holdings to the Government coffers. So how on earth does the Fijian Affairs Board remain liable? It is money OWED to the government coffers is it not?

This is where the journalistic efforts of FBC are found sorely wanting. If we take what Bainimarama is saying, it stands to reason that what is transpiring is that the Government shares in Fijian Holdings (grant/loan whatever you want to call it) are essentially being cashed out.

But if the Fijian Affairs Board now has to pay back this LOAN then the illegal and treasonous Government is essentially coercing the next cash-cow that is Fijian Holdings (especially now that they've buggered up our pension funds) to cough up a $20million loan.

So the way this news story is tweaked, it is NOT about Fijian Holdings paying back their grant/loan whatever you want to call it.

The illegal and treasonous Government has taken a $20million loan from Fijian Holdings at interest rates unknown. And how on earth does a Government Department have the means to be liable if they are dependent on Government Funding? Well the Fijian Affairs Board is liable because they continue to rake in money from dividends from their shares in Fijian Holdings.

In essence Fijian Holdings is giving the Government a loan that Fijian Holdings will also pay back via dividends to Fijian Affairs. And whether or not Fijian Holdings can pay this back depends on their local investments and ultimately the economy.

CleveRRRRRRRR but not clever enough we're afraid. The shareholders will inevitably riot once this blows open.

You see the stench of Government desperation to keep their coffers open has spread.

We are told that all government owned entities have similarly been leaned on to release funds in the MILLIONS back to Government coffers ASAP.

FIRCA's current operating 2010-2011 budget has had to cough up $10mill and the lovely spin pieces on Airports Fiji Limited and Fiji Ports Corp Ltd all tell the same story.

The Government is officially broke. And desperate since all this has transpired in the span of a week.

Sada Reddy has been nominated by them as crap-spinner to massage investor confidence during this crisis.

The illegal Governments wish-list to IMF has not seen the light of day and the Public Service Commission Chief, Parmesh Chand has even been hinting delicately at the inevitable.

The icing on the cake was that Bainimarama's recent jaunt to the Pacific Island-Arab League Summit was a fishing expedition to see whether we could put our begging bowl out.


Tanna said...

aha ... thanks for this ... we all need to be able to see through the propoganda that the junta is spinning.

Anonymous said...

You fool. Read your piece again to see how stupid you sound. FAB took $20 million loan, they gave to Fijian Holdings.
Qarase tried to boost his investments and turn it into a grant.now they have to repay loan so FAB remains liable, and FHL has to pay back.this blog did well when it started but has lost its way with personal attacks and pathetic analysis which it refrained from doing in the beginning. This is no longer journalism, the blog has lost its respect and credibility.

Anonymous said...

What did you expect especially after Chaudhary left ??? - This is the only man to take Fiji forward and should be given his job back as PM that was taken away by Bainimara and handed to Qarase.