What People Power Can Do: The Case of the USA

Sada Reddy: Military Mouthpiece Vowed "No More Devaluation"...

..yes he did.

In October 2009 Sada Reddy promised us, We The People, that there would be no more devaluations.

We wonder how he will be eating his words gracefully this time tomorrow and just how TF they will justify a whispered VAT Hike of 15%.

Reddy vows no more devaluation
Shalveen Chand
Saturday, October 24, 2009

THERE will be no more devaluation of the dollar, says Reserve Bank governor Sada Reddy.

Opening the Fiji Human Resources Institute convention yesterday, he said: "There was no other way to salvage the fast depleting foreign reserves brought about by the global financial crisis and the political crisis, which had an immediate impact."

Mr Reddy said when he took over as governor in April, Fiji had only enough foreign reserves to sustain just one month worth of imports.

"The devaluation was the only way to go as we could not waste time," he said. "When we have a political crisis, there is speculation regarding currency and there was such in Fiji, and to curb that, we took the difficult steps."

Mr Reddy said by last month, the foreign reserves had touched the billion-dollar mark.

He said that by mid-next year, the forecast inflation rate would drop by 2 per cent if the price of oil remained stable.

"There was speculation about another devaluation which did affect the economy slightly, but let me assure you there will be no other devaluation," Mr Reddy said.

He said that tough decisions were only successful because of the people who helped make the decisions.

"In 1998, I spearheaded a change in the RBF which saw almost 60 people lose their jobs, however, this step was taken with the future in mind," Mr Reddy said.

"Now we have all graduates who know what they are doing. The three-year change which began in 1998 was a move to bring about qualified people who would be able to stand out and help in dire times."

He said the human resource decisions taken almost 10 years ago had helped the RBF come up with sound policies that have salvaged the economy.

"We had asked the commercial banks not to increase interest rates but there were no initial policies however two banks went ahead and increased rates so we put in a policy to ensure that people did not suffer with increased rates which normally happens in crisis situations" said Mr Reddy.

One of the new changes that will be seen with the banks next year is micro-financing, banks have been told by the RBF to look at providing finances to people who do not fit the credit ratings.

Mr Reddy said that the RBF found that banks in Fiji had a much more better spread, rate of return than most banks.

"From January next year banks will have to have a microfinance unit. Banks have to change their minds about this. Banks will be involved with the RBF on how they can go about doing this."

According to Mr Reddy, he had to take up the post of governor of the central bank as there was a vast vacuum at the leadership level after the exit of Savenaca Narube following the abrogation of the constitution.

"People are the key to economic success and we have to ensure that we have a skilled labourforce, that will ensure sound decisions and practice, like the one that saw the RBF come together in time of a financial crisis."

Postscript:  Today's mini-budget announcement dictates a 15% VAT hike on imported vegies. No sign of a strongly whispered Devaluation.

The PINA Row Erupts Again

Mr John Woods. Take a bow. You are The Man.

Freedom loving journalists this is a test of your integrity and your respect for your role as the 4th Estate in a democratic society, so please strongly consider joining the new body that is being set up. 

This new media entity can only be as good as the upstanding professionals in this industry that it attracts.

VP of peak Pacific media body PINA resigns in disgust
Updated July 1, 2010 07:29:41

The vice president of the Pacific Islands News Association, PINA, has tendered his resignation saying the board's inaction in "leading the rage" against Fiji's new media laws makes him ashamed to be a member.

Monday's gazetting of Fiji's Media Industry Development Decree 2010 will see stiff penalties handed out to journalists and media owners for unfavourable reporting as judged by the military-backed regime. And foreign ownership regulations will be tightened, which will squeeze The Fiji Times' owner News Limited out of the country.

PINA is based in Fiji.

Geraldine Coutts asked Vice President John Woods - who is also the managing editor of the Cook Islands News - for the reasons he decided to resign.

Presenter: Geraldine Coutts
Speaker: John Woods, former vice president of Pacific Islands News Association, PINA
Listen here.

WOODS: Basically the implementation of the decree is the last straw, and I'd say the last straw in that for over a year now PINA has been challenged to standup, speak against and resist the impositions of the military regime as far as they affect censorship and freedom of speech. And PINA has kowtowed to the regime through its administration, which is Fiji based, and the administration has dodged and ducked whenever politically a board member like myself has asked for some action, for a response. Disillusionment has grown and spread throughout the region amongst journalists and amongst media operators because of the inaction of PINA to the point of frustration and the suppressed outrage has now kind of manifest itself with a silent transfer of support and allegiance away from PINA to a new entity, which has the working title of Pacific Media Association.

COUTTS: So you're saying that you're going to setup an opposition group now to PINA?

WOODS: A group of independent media operators in the region is going to do that, I'm merely one of the group.

COUTTS: Who will be the group, who will be the members of the group?

WOODS: Well at the moment we have publishers and broadcasters from Vanuatu, from Samoa, from Tonga, from the Cook Islands, who have met and we have forged the concept of a framework for a new body which will be totally independent, will be all inclusive in terms of we won't have too many restrictions on who's allowed to speak, who's allowed to attend our meetings. And we won't play political games like PINA plays every year or two over who's paid and who hasn't their membership fees. We will be looking from as far afield as Wallis and Fortuna, right across to French Polynesia, we're looking at New Caledonia. These are countries that are not represented in PINA. The members have pulled out and failed to renew because of concerns over the duplicity and double standards of PINA.

See PINA's basic constitution is to uphold and defend free speech and a free press. If PINA cannot even answer or comment on the problems and challenges of censorship and restrictions in one country, then it's lost its credibility.

COUTTS: Mr Woods have you got the backing of the Forum and will their subscribers, such as Australia and New Zealand support this new body?

WOODS: I don't know you'll have to ask them.

COUTTS: Well I'm just wondering if you're setting it up have you been in touch to find out how viable this new organisation can be?

WOODS: We know it's viable because we're the independent media operators and we're forming an association for ourselves. We're not bludgers, we're not dependent on aid, like PINA, and we're not going to basically beg, go cap in hand to funding organisations. We will survive on our merits and on our own strengths and on our own undertaking.

COUTTS: Well you've written your letter of resignation to Moses Stevens, the President of the PINA board. Have you had a response from him?

WOODS: No and I'm not surprised.

COUTTS: Why not?

WOODS: Because anything thorny and anything difficult gets duck-shoved and ignored by the PINA administration.

COUTTS: So you obviously won't be based in Fiji as the PINA board is. Where will this new organisation be headquartered?

WOODS: You're asking me for definitive answers to something which is really it's still in its conceptual stages. So everything's provisional and everything's new. I can't speak for the organisation because the organisation's not even properly constituted. We are merely a gathering of independent media operators who want to form a new organisation. We met in Samoa a couple of weeks ago, we are thinking that Samoa would be an ideal location because politically the prime minister is a champion of free speech, because it has good air links throughout our region to Polynesia, Melanesia and New Zealand. And that's the preferred choice at this stage.

COUTTS: I know you're only just getting going and you're not quite sure, but the base of it is that you're protesting against the Fiji media decree. Can I just ask you what in particular you are most upset about that this decree introduces?

WOODS: Well the obvious strictures of insisting that foreign investment be reduced to a tiny percentage, that journalists are subject to imprisonment and horrendous fines if they contravene the decree's restrictions. These things are oppressive, barbaric, and in themselves are enough reason to I think pull PINA out of Fiji, which should have been done long ago, and for at least the organisation to speak up and challenge the military puppets that have invented this ridiculous, barbaric 19th century set of rules.

COUTTS: Well PINA has resisted the request, the often put request to move itself out of Fiji. Why do you think it continues to do that?

WOODS: Because it is dominated and driven systemically by Fijian interests because the operators are protective of their jobs, and because the democratic operations of the board that drives the association are controlled, contrived and manipulated by a few people.

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.