June 27, 2011

Superannuation fund IS cash cow for military regime

The news, we're afraid just does not get any better where our superannuation funds are concerned.

Because the convenient excuse is that our superannuation fund body is "restricted from investing abroad", our retirement funds have instead been forced to invest heavily "in government bonds".

And if that is not depressing enough, check out the tabulated data below as it appeared in the Fiji Times, and the lame excuse from the illegal and treasonous PS for Finance, Filimone Waqabaca, who said that the military regime's repayments to loan repayments "has been prudent".

This right here is the reason why FNPF reform farce is being railroaded and despite the feeble protestations by the CEO, Aisake Taito, that all views will be "collated" for the board (read:covering his a**), we know exactly where this is going.
2012 budget preparation
Elenoa Baselala
Saturday, June 25, 2011

THE performance of the government against its annual budget is documented in the budget books that are released during national budget announcements.

Deputy permanent secretary of the Finance Ministry, David Kolitagane mentioned this during a Fiji-Australia Business Council function on Wednesday at the Holiday Inn in Suva.

Mr Kolitagane said the Government performed well considering its ability to fund its own operations as well as diverting more funds for capital projects.

This year, the Government allocated $525million for capital works which is a 37 per cent increase compared to last year.

Mr Kolitagane said the Government's target this year was to raise exports.

He also revealed that preparations towards the 2012 Budget were in progress and that the private sector would be consulted.

He also urged the private and banking sectors to work together and address the excess liquidity in the system.

According to statistics revealed by the Reserve Bank of Fiji in its March quarterly review released this month, the government in 2008 (the latest stats RBF had) spent $564.7million on wages and salaries, $17.3m on travel and communication, $87.2m on maintenance and operation, and $54.7m on the purchase of goods and services.

A further $191.9m was spent on operating grants and transfers, $37m on special expenses
and $35.5m on pension and compassionate allowances.

Of the total expenditure of $1.68 billion in 2008, $482m were for charges on public debts, $116.3m on capital works and $17.4m on capital purchases.

Another $79m were for grants and transfers and $51.4m were for value added tax.

Meanwhile, RBF statistics also revealed FNPF's investments from 2000 to 2010.

Government's borrowing from the fund as of last year totalled $2.1bn.

Government's debt with the FNPF grew by $1.1bn from $921.7m in 2000 to the present levels.

Last year, the Government borrowed $257.6m. In 2009 total government loans was $1.85bn.

Because the FNPF is restricted from investing abroad, it has been investing heavily in government bonds.

Finance permanent secretary Filimone Waqabaca had said publicly that the Government has been prudent in its loan repayments.

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