FSC aims to recover loan losses
Friday, March 04, 2011
The Fiji Sugar Corporation will try to recover part of the $86m paid out to vendors from India who were tasked with the upgrading of Fiji’s sugar mills.
FSC earlier admitted that the major upgrade works carried out by the various Vendors from India particularly at the Lautoka, Rarawai and Labasa Sugar Mills were a failure.
FSC executive chairman Abdul Khan says they cannot determine whether all the money can be recovered but they will try to get back some of the money.
Khan told FBC News the FSC was advised by the Sugar Technology Mission of India of the work needed to be carried out in Fiji’s three main sugar mills.
He says upon accepting their advice a loan of $86 million was provided to the FSC by the EXIM Bank of India - guaranteed by the Fijian government.
Khan says the money was not spent wisely during the upgrade works, adding the Corporation will try to find ways to obtain a discount for the loan to a value that is agreed to between the FSC and the Government of India.
Report by: Rajendra James
March 04, 2011
Military regime admits they stuffed the sugar sector up
We honestly don't know what the military regime controlled Fiji Sugar Corporation (FSC) expects taxpayers to do when we receive this kind of news.
On show in this instance is "boomerang aid" at its worst. This is a stuff-up of major proportions and heads should roll.
Especially John Prasad's.
And the FSC Chairman, Abdul Khan, must be on another planet if he thinks he can convince taxpayers that they can "recover the losses".
That would be another big whopper, twinning Lt Col Manasa Vaniqi's assertions last year that sugar is coming out of our ears, when what we see now is that it is not.
This episode would not have hit the light of day if Felix Anthony had not sprung them in inaction.