Raw Fiji News

Counsel for David Burness and others in the multiple action against the Fiji National Provident Fund and Government’s decision to make substantial changes to pensions already granted to pensioners has requested the Chief Executive Officer Aisake Taito to stop insulting her clients in public meetings. Taito has referred to her clients and pensioners as being ‘well-off’ and beneficiaries of ‘overly generous’ pensions at the expense of FNPF members.

Dr Shaista Shameem, whose challenge on behalf of David Burness and others is already in court, said that pensioners receiving pensions from FNPF are elderly, and have no other source of income. Many are in ill-health. They were told when they retired that the pensions they would be getting would be given to them for life. They did not make any other arrangements for alternative sources of income and many are past the age when they can find work. These pensioners had a contract with the FNPF, and it is the court that will determine the outcome of the case, not Mr Taito.

For Mr Taito to arrogantly threaten to reduce the pensions of those who do not accept the FNPF and Government proposal by the end of the year when a case challenging this decision on human rights grounds is before the courts, is simply irresponsible, ruthless and dictatorial. Such announcements insult the judicial mechanisms of Fiji.  

Dr Shameem said her client and others seeking the court’s decision will continue to pursue their case in court irrespective of the announcement. The proposal of the FNPF is unacceptable to Mr Burness.

In the meantime, Dr Shameem said Mr Taito should stop throwing insults at her clients in public. As a public officer whose salary is paid by tax-payers, including former tax-payers, Mr Taito should exhibit more decorum in public meetings.

Ever wondered why the pension rate for politicians, judges, civil servants, military and police officers have been increased by the junta to 20% while at the same time, they’ve passed an illegal FNPF decree ( a members owned organisation and not government-owned) that will reduce FNPF pensioners rate from 25% to 9% come March 2012?

It seems that the move was made to make retirement attractive to the useless imbecile drunken Pressie Epeli Nailatikau and to those who have served the regime and already in retirement like Epeli Ganilau and others.

Talks about Nailatikau moving out of the Nasese white house is heating up again with some saying that Mrs Koila Mara Nailatikau is already organizing a trip to Papua New Guinea to try and convince the Board of Bank of the South Pacific to retain her as one of their BSP Fiji board members.

BSP, who bought Colonial Bank of Fiji not too long ago, took Koila in as an “honorary” board member, a decision they seem to be regretting now.

Koila got in to the BSP Board with the backing of her family friend Sir Michael Somare who was Prime Minister of PNG until some months ago when he was told to vacate his office due to bad health.

Meanwhile, it seems that Nailatikau is pretty much ok with his retirement package and is not too hard up about leaving the white house while his wife Koila Mara is now busy trying to find other means of earning income to fund their opportunistic vindictive lifestyle against those they’re envious of.

By Suliasi Daunitutu

Australia did NOT put the Pacific region in this quagmire and the so called Pacific Hub is ruled by a person who WIll only engage anyone or any country if the outcome of such engagement can have a reconcilliatory outcome for the criminals who committed the treasonous act that has brought the country to where it’s at.

Also, the idea of “mending relationship” must be treated with caution, because it has an edge of “condoning” the coup about it. This will not be a sound basis of starting off or mending any form of tie, be it political, trade or any other, besides Australia has not completely closed all its doors, just today a lady was here at the Canberra Hospital, sponsored by AusAid, to study how Canberra Health System is run.

If USA wants to help Fiji get back on its feet and become the Hub of the Pacific, then it should start by not employing Fijian soldiers in the Sinai, also send all their representatives in USA back home. This will help not only USA, but the whole Pacific region, rather than having a short term solution which will benefit the International community and not the Fijian people.

The peoples’ lives must be the focal point in all negotiations, as mending the relationship can mean gaining access to the regional opportunities available to international investors, but the “HUMAN RIGHTS ABUSE” is not guarenteed to be solved by this approach.

FDFM must always be on Australia’s views that Fiji must return to democracy than we talk after that. Failing this, poverty will rise and unemployment will foster more crime and related misfortunes to the people while the people USA is trying to mend relationship with (illegal regime) continue to laugh and snub.

Pacific Scoop:

The folly of Australian policy towards Fiji is at the centre of a damning new landmark report that suggests the United States has lost confidence in Canberra’s ability to influence events in the Pacific and counter rising Chinese influence in the region.

It calls for the immediate and unconditional lifting of regional sanctions against Fiji and for Australia to “repair its relationship at the highest level” by re-engaging with the Bainimarama regime through the Pacific Islands Forum.

“It is well past the time to treat this festering regional wound”, it declares. 

The report – covering all aspects of Australia’s relations with the Pacific and entitled “Our Near Abroad” – has been issued by the Australian Strategic Policy Institute (ASPI), an independent, government-funded think tank set up in 2001 to advise Canberra on its defence and strategic policy options.

Direct challenge to Australian Government policy

The conclusions of its authors – Professor Richard Herr and Anthony Bergin – are bound to stick in the craw of Australia’s foreign minister, Kevin Rudd, for they present a direct challenge to the entire edifice of current Pacific policy.

The report details in stark terms the extent to which Australia has been isolated in the region and is losing its ability to influence “collective decision making in the South Pacific”.

It cites as evidence the fact that eleven Pacific Island members of the United Nations have formed a voting bloc that excludes Australia and that the Melanesian Spearhead Group (MSG) – which also excludes Australia – has backed fellow member Fiji against Australian sanctions.

It calls on Australia to “regather the threads of regional leadership” with a comprehensive range of measures that include repairing its relationship with Fiji, a country it describes as being at “the heart of the Pacific Islands regional system” as the principal transportation, communications and diplomatic hub.

“The region cannot survive without its heart” – the report says – describing Fiji’s suspension from the Pacific Islands Forum as having “seriously changed regional dynamics”.

ASPI warns of the consequences of Fiji seeking new international relationships because of its breach with Australia and New Zealand over Frank Bainimarama’s 2006 coup.

China the “significant beneficiary”

It says Fiji’s membership of the Non Aligned Movement  “underscores Suva’s more aggressive pursuit of South-South dialogue, specifically to reduce reliance on its traditional friends, including Australia.

“Whether intended or not, China has been a significant beneficiary of this development as a leading state in the NAM”, the report concludes.

The authors suggest that Fiji has outwitted Australia to the detriment of its national interests in the Pacific and the strength and cohesion of regional organisations such as the Pacific Forum .

“The importance of Fiji for the new geopolitics of the region is that it’s actively challenging Australia’s privileged position in the regional system. There are many reasons why Australia should repair relations with Fiji, but the deleterious effects of the current contretemps on the Pacific Islands Forum are the key because they cascade through the regional system”.

The report cites  “the impossibility” of concluding the current PACER Plus trade negotiations and “the rift between the Pacific Islands Forum and the Melanesian Spearhead Group”, which have taken opposing views on Fiji.

Sanctions “impractical” and “dysfunctional”
It goes on to say that “Forum-related sanctions (against Fiji) are being subverted by other organisations, including the Secretariat of the Pacific Community (SPC),  the Forum Fisheries Agency and even RAMSI,  the billion dollar Australian intervention in Solomon Islands.

It describes those sanctions as “impractical” and says “they have proved dysfunctional for Australia and for its image in the region”.

It also says the delay in repairing the relationship has been costly, partly because attitudes in Fiji about the need for Australian assistance appear to have hardened”.

As well as the lifting of sanctions, the report calls on Australia to follow New Zealand’s lead in re-establishing ministerial contact. More controversially, it also calls for the re-establishment of Australia’s ties with the Fiji military to deal with maritime security, border protection and transnational crime.

ASPI goes on to examine the divergence in approach between the United States and Australia towards Fiji, exemplified last week when Washington’s new ambassador in Suva, Frankie Reed, visited Frank Bainimarama in the prime minister’s office.

No Australian or New Zealand head of mission has had any direct contact with the Fijian leader since his coup five years ago.

The report quotes Ms Reed as having described Fiji’s position in the Pacific as “unique” and said it was “a key focal point in America’s larger regional engagement with the South Pacific”.

US seeking “more direct” approach

In stark contrast with the Australian position, the ambassador said the United States sought a “more direct engagement with Fiji’s government to encourage the restoration of democracy” within the regime’s stated timetable of September 2014.

The ASPI report says that while “the US is reluctant to openly express criticism of Australia’s handling of regional relations, it’s clear there are genuine doubts about Australia’s capacity to lead islands’ opinion on relations with China”.

It concludes that “the US is taking on a more direct role in protecting its own interests in the region, just as it did in the mid to late 1980s when it felt that managing Cold War challenges in the Pacific Islands was beyond the capacity of Australia and New Zealand”.

By Sai Lelea

The illegal regime in Fiji has again flagged its plan on forcing on the people of Fiji a new constitution. This was announced by the Dictator Bainimarama as part of his Budget speech this week. He again tries to placate opposition groups and the international community with a timetable and budget allocation for the work.

Junta appointed money chief, Filimoni Waqabaca, is demanding that every taxpayer in Fiji pay up their taxes or else they’ll be persecuted and hunted down by his team with more penalties.

This is the same man who prays to his god at Calvary temple in Samabula to give him wisdom on how to rip off Fiji taxpayers to finance his and his masters illegal activities.

This holier than thou Filimoni Waqabaca is the same crop of “no-ethics” young Fijian wanabee executives whose career path have been boosted by the military regime after they agreed to become their slaves in churning their illegal government apparatus.

Perhaps Waqabaca should ask himself these simple questions, “why should people pay taxes to illegals like him and his bosses? Is he really been truthful to the Christian values he espouses to or is he another of those hypocritical over-rated churchified dude who can’t tell the difference between Harry and Mary?

Here is a report by FijiVillage. 

As just a few weeks remain for higher penalties for tax evaders to be announced, the authorities are stressing to people to pay their taxes.

It has been highlighted that this year direct taxes which are PAYE, corporate tax, dividend withholding tax, capital gains tax and other minor taxes will rake in about $451.4million for government compared to $426million in 2010.

Next year, despite the personal income tax reductions, direct taxes are estimated to total $477.4million which is $26million above this year’s collection.

The increase is largely due to higher collections anticipated in corporate taxes.

Indirect taxes are expected to rake in $1.190billion for government next year compared to $1.04billion this year.

Indirect taxes are VAT, Customs, Service Turnover Tax, Water Resource Tax, Departure Tax, Stamp Duty, the new Telecommunication Levy, the new Credit Card Levy and the new Third Party Insurance Levy.

The government is expecting an additional $20million through the Service Turnover Tax, an additional $32million from Departure Tax, an additional $5million from Stamp Duty, $2million from the Telecommunications Levy, $3million from the Credit Card levy and $2million from the Third Party Insurance Levy.

Permanent Secretary for Finance, Filimoni Waqabaca said Fiji’s revenue position will be positive if every individual and company just pay all their taxes.

There is an audio file attached to this story. Please login to listen.

A new Income Tax Decree is expected to come into force soon.

FIRCA will also be making further announcements on higher penalties for tax evaders.

Story by: Vijay Narayan

http://www.fijivillage.com/?mod=story&id=291111bc439a4f039504234175f44b

The Grey Power movement powered by FNPF pensioners taught their CEO, Aisake Taito, a big lesson yesterday – that he and his Board are illegals who have no authority to be doing what they’re doing with their new pension rate.

Sources who were present at the public meeting at Civic Center say Aisake Taito was an embarrasement and lacked the depth nor understanding of the severity of the reform he and his warped Board of Directors have embarked on.

Taito was moved from Ministry of Finance to CEO FNPF soon after the coup.

Insiders say his appointment was made possible on the strength of his brother-in-law, Ului Mara, who was a key Military Council member and a co-conspirator of Frank’s 2006 coup.

So what has he achieved for his shareholders, the FNPF members?

Reduced pension rate for pensioners, less return on members funds, failed multi-million dollars tourism projects like Momi, poorly maintained FNPF properties in Suva and other town centers, low staff moral etc.

In other words, Taito’s performance is pathetic with his shareholders in a worse off position then when he started.

He has many unhappy shareholders and by right, he should have been dismissed together with his Board of Directors long time ago.

Pensioners have questioned the legality of the new pension rate.

The Fiji National Provident Fund held a public consultation at the Civic Centre in Suva where a majority of pensioners voiced their concerns.

Seona Smiles says FNPF’s new rate is illegal.

“36% is going to lose by the new arrangement are basically being punished for a lack of inaction and a lack of accountability and a lack of transparency by the FNPF – we should not be punished – there is a legal action in front of the court and I wonder what best practice advices changing the law while the matter is still under consideration in the court”

Another pensioner claimed that the forum is a formality as the pensioners views is not reflected in the new FNPF Decree.

The consultation must come in before you come up with the scheme – there is nowhere where we can give in our opinion or our input _ I wonder if all this is legal – No -I don’t think so”

David Burness, who has taken the FNPF matter to the court also criticised FNPF for not honouring the initial agreement which was made when they first joined FNPF.

“You cannot touch the current contract – you cannot amend it and yet today you are here standing and telling us that you going to cut it by certain percent – you are offering nothing – we did not contribute all our money for the whole working life into a bank – we put our money in our bank to use on a daily basis -we put our money into FNPF to sustain us for the rest of our life – you have taken that sustainability away from everybody in this country”

Meanwhile, FNPF Chief Executive, Aisake Taito says pensioners who are receiving less than $100 will receive $100 and those recieving between $100 to $300 a month will still receive the same amount.

He says FNPF will refund the actual amount to pensioners and it depends on pensioners if they wish to rejoin the new pension scheme.

Report by : Dev Sachindra

http://www.radiofiji.com.fj/fullstory.php?id=41761

By Nosapo

FB mentioned in the speech that Reserve Bank was in the process of approving the move.

As evidence, I am proud to announce that RBF has granted a commercial banking license
to a large European bank, which is to commence operations next year. (page26)

I don’t think they will get into conventional banking sector.

Note in the change in SPSE

-South Pacific Stock Exchange (SPSE) Incentives
 The 40 percent local equity requirement for foreign incorporated companies listed on the SPSE will be
removed.

It kind of signals that particular institution is an investment bank that will deal with future contracts of currency.

I don’t remember hearing that RBF currency controls were relaxed in the budget address.

No mention in the media budget coverage

http://www.fijivillage.co…f34b1bb42859177f4bdd0247

I even cross-checked the PDF of the actual budget address transcript.

http://www.fiji.gov.fj/in…p;gid=435&Itemid=158
http://www.fiji.gov.fj/in…p;gid=435&Itemid=158

4 mentions of the Reserve bank or RBF

Page 11:

 Government will work together with the Reserve Bank of Fiji and the financial institutions
and other private investors to issue bonds to create specific funding on a sustained basis
for infrastructure development.

Page 23:

The Reserve Bank of Fiji will draw up guidelines for financial institutions for smooth
administration of the tax.

Page 24:

To address the constraints small- and medium-sized enterprises face, my Government,through the Reserve Bank of Fiji, will put in place a new financing mechanism.

The notice of relaxation of exchange controls in the RBF website and MoI press release which was dated Nov 25th.

http://www.fiji.gov.fj/in…d=67:fiji-header-stories

http://www.reservebank.go…0Exchange%20Controls.pdf

RESERVE BANK OF FIJI

PRESS RELEASE
Press Release No. : 34/2011 Phone : (679) 3313 611
Fax : (679) 3302 094
Date : 25 November 2011 E-mail : info@rbf.gov.fj

RESERVE BANK RELAXES EXCHANGE CONTROLS

The Reserve Bank of Fiji has further relaxed exchange controls as announced in the National Budget Address today by the Prime Minister and Minister for Finance, Commodore Voreqe Bainimarama.

The Governor of the Reserve Bank of Fiji (RBF), Barry Whiteside highlighted that the increased delegated limits mean that the Bank is confident about the outlook on the level of foreign reserves, which is currently around $1.5 billion. He added that the measures announced would result in improved efficiency for businesses as they will no longer be required to lodge their applications with the RBF.

Mr. Whiteside said that apart from increased delegated limits on a range of transactions, the RBF has also allowed commercial banks to write more forward contracts for importers as well as re-introduce offshore investments for individuals up to $10,000 per family per annum.
The attached document provides more details of the changes which will become effective from 1 January 2012.
If you have any enquiries, please call the Exchange Control Unit at the Reserve Bank of Fiji.

Reserve Bank of Fiji

2
Category of Payments Changes Effective from January 2012

1. Offshore Investment

 FNPF
 Non-Bank Financial Institutions (NBFIs)
 Companies
 Fiji residents
 FNPF, NBFIs and Companies require Reserve Bank approval
 For individuals, delegate up to $10,000 each or per family per annum

2. Emigrant Transfers
 Requires Reserve Bank approval

3. Export of Cash
 Increase delegated limit to the equivalent of F10,000 in foreign currency inclusive of F$500

4. Airline Ticket Sales
[applicable only to overseas airlines with offices or agents in Fiji]
 Increase delegated limit up to $1,000,000 per application

5. Forward Cover Contracts
 Commercial banks are allowed to write net forward sales contracts up to $20m per bank
 Commercial banks will not be permitted to purchase foreign currency from the Reserve Bank to fund their sales contracts

6. Charges/Fees/Services

a) Freight & Shipping
b) Other Transport Charges
c) Royalty & Commission
d) Patents, Copyright
e) Brokerage & Other Charges to agents and representatives outside Fiji
f) Movie/Film Hire, News Service
g) Repair – domestic air/shipping, other
h) Technical, Professional & Management Fees
i) Advertising
j) Office Expenses
k) Visa Application
l) Re-imbursement/refund
m) Software, etc
n) Other

*does not include commercial banks and FX Dealers’ head office expenses or reimbursement charges

 Increase delegated limit up to $500,000 per invoice

7. Import Payments
 Advance payment
 Payment for merchanted goods
 Payment to 3rd parties for goods already received
 Prepayments of term bills for goods already received
Increase delegated limits as follows:
 $500,000 per invoice
 $100,000 per invoice
 $100,000 per invoice
 $1 million per invoice
3
Category of Payments Changes Effective from January 2012

8. Loan Repayment
 Principle and Interest (excluding up- front fees)
 Increase delegated limit up to $500,000 per amount due as scheduled

9. Medical Expenses
 Paid directly to the patient
 Increase delegated limit to $5,000 per applicant per annum. This is in addition to the travel allowance of $10,000 per trip.

10. Offsetting of Foreign Exchange Earnings against Foreign Currency Bills Payable
 Bills Other than Merchandise Imports
 Delegate up to $100,000 per invoice

11. Subscriptions to clubs, societies and trade organisations including entrance fees.
 Increase delegated limit up to $10,000 per annum

12. Profit declared and distributed to non-resident shareholders/partners/sole proprietors
a) Capital
b) Dividend or Operating Profit
 Requires Reserve Bank approval
 Requires Reserve Bank approval
25 November 2011

by real jack

how we will generate growth out of this budget is anybody’s guess

company tax rates have been dropped from 28% to 20% but the govt doesn’t seem to understand that companies don’t drive consumption – thats driven by INDIVIDUALS.

you drop the tax rate for companies and it does not necessarily mean that they will employ more people – because employment is not driven by a tax break but BY CONSUMPTION DEMAND – and consumption demand is driven by INDIVIDUALS

nor does it mean that they will expand their operations – because expansion is driven by CONSUMPTION DEMAND which is driven by individuals

plus in an economy where Customs duties and VAT drives the cost of production for these companies, all it means is that the reduction in the tax rate will only create a bigger buffer for dividend payouts which may not necessarily be paid out in that year – you can hold off on dividend payouts for two to three years and generate those funds back into the company – but that doesn’t necessarily translate into growth across the broader economy.

and then they introduce a social responsibility tax capped at 23% at $270,000 plus 1% for every band the earner goes over – rendering the deduction of company tax meanigless – they just create an illussion of reducing company taxes when in fact they have effectively increased it with the social responsibility tax.

raising the tax threshold from 15,000 to 15,600 ( a 600 dollars rise) is neither here nor there in an economy where being on the poverty line means $8400 per year or $700 per month - it leaves people with 6600 in their pockets per year to pay travelling fares and school fees and all the rest of it – how you can increase individual demand on consumption based on those figures is simply a big question mark – you need the majority of guys to be making at least $25k per year to make that 15,600 buffer zone meaningful – because that would then give a minimum 10,000 buffer zone within which they can then play ABOVE the poverty cut off line of $7500 – so that if two people in a family are earning that minimum 10k buffer they have collective spending of minimum $20k available as disposable income above the $7500 poverty mark over the course of the year.

a $6600 buffer just around or even below the mark is meaningless – but thats where the majority of workers are in this country – marked off at around that $2:50 to $10 per hour average wage rate -  a family of 4 spends 200 minimum on shopping a week – thats 400 a month or 4800 a year plus add on cost of travelling and the kids school fees and all other associatied necessities and there’s virtually nothing left for consumption spending at the end of the week

this budget would make sense if the average salary in this country was at around $25k per year – because then it would be able to drive the kind of domestic consumption we need – by giving a buffer above the poverty line and then above the minimum cut off tax limit of $15600.

but our average wage rate is nowhere near there

these guys don’t seem to understand that the $15600 is set off against an inflation rate hovering at 7 to 10% variable and VAT fixed across the board at 15% – you need a bigger fiscal stimulus to make domestic consumption roll

the MAJORITY of our wage earners are in that bracket from between $7,500 to $25,000 – thats where the domestic consumption centre of gravity is in this country. where the critical mass is situated.

its good having all the other rate breaks for guys earning above and upto 50k – but we need to target where the critical mass is and bring that into equilibrium to drive consumption. we need to generate VOLUME and target where the VOLUME is situated – and the VOLUME is situated in that bracket between $7500 and $25,000 – these guys are hit with VAT (which they can’t claim refunds over), run over with the transportation and shopping costs – and so this tax break is just like a subsidy for them to keep their head above water – we shuld be looking at not only keeping their head above water BUT ALSO MAKING THEM HAVE ENOUGH TO SPEND – because they represent teh VOLUME and SPREAD which the economy NEEDS to generate DOMESTIC CONSUMPTION.

Filimoni Waqabaca may think his appointment by the junta is a blessing to his faith.

What he fails to understand is that the source of his appointment is the counterfeit of what he thinks is the truth and the life.

His ambitiousness to apply his skills in trying to mend the scars of Frank’s coup and other coupsters before him is understandable, but such misplaced ambition like his is dangerous, especially when everyone else knows that he’s prostituting his talents to those whose agenda is all based on an illegal foundation.

This applies to other persons like Waqabaca who have entered the public service under the regime’s appointment.

Waqabaca and his team are the main achitects of the 2012 budget announced by its clown reader, Frank Bainimarama.

The 2012 budget has been praised by some as genius.

Mark Halabe, a long time investor in Fiji’s garment industry who’se business thrived under coupster Rabuka’s garment tax-free giveaway ’til now claim that the budget is a “game changer that will open up the economy and will attract foreign investors” mainly because of the drop in corporate tax from 28% to 20%.

Is Halabe for real or is he saying that to please the regime in promoting his own agenda?

This is the man who fell out of favor with Frank’s junta after he was indentifed as a key player in Qarase’s ousted government.

It is not a surprise then to see where he is coming from because like every other business people, he will eventually have to sell his soul to the dictator to keep his business alive.

Of course everyone would like to be optimistic like Halabe, however, no one is a fool to think that Frank’s regime is solid, credibe, believable with a tight legal and judicial system that will protect the proprietory rights of investors.

To the contrary, Frank’s junta is founded on deceit and everything illegal which makes it untrustworthy and unworkable and Waqabaca is simply there to dress up Frank’s lies in a different design and shade.

What is there to believe that Frank will not increase the corporate tax back to 28% or even 31% next year?

Or better still, what guarantee is there that Frank’s regime will make it to 2012 making every policy and decree under their usurped leadership null and void?

If his many lies is something to go by, then the investors that Halabe is talking about are really not the kind of investors Fiji’s interested in for there are just too many uncertainties in Fiji’s leadership right now for any investor with real money to get excited about.

Fiji for now will just have to make do with the fly-by-night investors who are there to make their quick buck like the many dodgy investors facilitated by Frank’s regime in return for a percentage cut for themselves.

Waqabaca on the other hand will soon realise that his budget is a lie and pie in the sky leading his deceitful team to many more supplementary budgets come 2012.

Naboro jail beckons for illegal regime apologists like Filioni Waqabaca.

Fiji military regime hand picked Director of Public Prosecution from Sri Lanka, Ayesha Ginasena, is understood to have been fired by her boss, Aiyaz Khaiyum last week.

Well placed sources say Ayesha was given her marching orders after Aiyaz found out that she was going to tender in her resignation to return to her motherland where she has been offered another lucrative job as Deputy Solicitor General.

These sources say that Ayesha was also getting uncomfortable and fed up with the level of interference DPP office was getting from Aiyaz Khaiyum, Christopher Pyrde and Nazhat Shameem, dictator Frank Bainimarama’s legal minders who have been masterminding the tyrant’s power struggle.

They also say Ayesha felt her career was not going to go anywhere if she countinued to aid and abet Fiji coupsters illegal agenda and she fear being reprimanded by the long of the law when Frank’s regime is no more.

There are talks that a decree will be introduced whereby the Solicitor General, Pryde, will also take up the DPP’s role.

Rumour mill in Fiji is said to be working over time again with whispers of possible changes in Frank Bainimarama’s top dogs.

Rumour has it that Frank will be replacing Epeli Nailatikau as Pressie when Epeli’s term comes to an end in January 2012.

Which means that Frank has to find a suitable person to wear his current Prime Minister’s shoes.

Who will that be?

Sources say Esala Teleni is Frank’s best choice so far.

They say Teleni is still in Fiji and is already understudying Frank.

These sources say that Aiyaz Khaiyum will remain in his current position since he is the main doer in Frank’s line-up in as far as decree making and commercial activities of the regime is concerned.

But the hard fact is that tyrant Frank Bainimarama’s talk of a multi-racial Fiji still falls short of it’s true meaning with the dictator not allowing Aiyaz or any other indo- Fijian to be Prime Minister in his illegal government.

Frank has come to the realisation that it is the indigenous Fijians who will determine his destiny, and it is again the native Fijians that he is now turning to for support.

Can Aiyaz pull one on Frank?

Fiji’s illegal Attorney General and his wife, Ela Gavoka, are basking in the birth of their baby son on 11.11.11 and we say congratulations!

Not much has been said about Aiyaz’s new bundle of joy except that father bear is keeping his son away from sight for fear of public scrutiny.

But one thing is for sure, father bear  will not remain a civilian for too long.

He will no doubt be thrown into jail soon where he will remain for the rest of his life leaving his son fatherless.

By real jack

well the mahogany thing is not getting us that rate of return.

its supposedly a billion dollar asset – but we are reading about mahogany trees being left to rot in the field and that sort of thing.

back in the 50′s/60′s when they planted those trees, those guys kept records of the varius plots – the point of keeping those records was because as the tree’s grew you would be able quantify the yield by plot - and the forestry guys would be able to have the forest Rangers assess any variations on the ground (i.e account for new sprouting or damaged trees from weather variations etc etc etc) and they would be able to keep a database on those plots

those Rangers would have been checking the plots on a monthly basis and keeping records – we should have had records going back to when those trees were first planted.

and coming into the early 90′s we should have started tranferring all that information onto a digital interface connected into the broader digital land information system which Kamikamica and the late Tui Nayau were setting up

we would then be in a position to know EXACTLY HOW MUCH OF A YIELD WE HAD and EXACTLY HOW MUCH THEY WERE VALUED AT.

the quality of the trees would be known – and the value of each plot would be known based on the exact number of trees standing in each plot.

and the policy guys in Govt should have known what to do with the plantations – either we parcel them off into small lots and auction them internationally based on the yield value per plot and then sign up concession agreements for the guys who bought in OR go the Fiji Hardwood way which they went.

but either way we needed to know exactly what was in the field.

but we didn’t.

there was no Transparency in what was going on

and as a result we have squandered that so called billion dollar asset. how much development have the people of Vugalei seen from those mahogany forests ? they have (or had) an estimated $50 million dollar forest standing in their lands over there - and how much of that $50 million have they actually seen ? 

the Govt guys went and did things based on royalty – so guys come along and pick and choose which trees they want – and leave the rest of the trees they have chopped down to rot in the field – and so the full value of that plot is not realised – apart from the damage caused.

in other places in the world eg Germany they sell lots – guys have to auction for forest lots at market rates. they then purchase the concession to harvest those lots – and they go ahead and harvest for a limited concession period – the value of the concession is based on the value of the standing timber within the PLOT – and they are able to do that because they have a GIS and LIS system which is a database tied into that land information structures – they realise full value on their forests. 

here we give concessions for a licence which is nowhere near the actual standing value of the trees – and then we hope that those guys go in a cut down trees and pay us royalties – but those guys go in and pick and choose – and the net result is we don’t get full value on the yield per plot, bcause they only pay royalty on what they cut down and bring out

in one plot they take 25 trees and leave 50 trees to rot – and then in another they take 35 trees and leave 65 to rot – and so on and so forth.

and what do we get ? we get royalties for the 25 trees they cut in plot 1 and 35 trees they cut in plot 2 – and the remaining 115 trees are left rotting in the field.

so what was the point of our having planted all those 115 trees and nurtured that plantation ?

we end up with royalties return which don’t reflect the actual value per plot  

in a 100 tree plot – we value each tree at $80,000 a tree – so we have a plot of 8000000 (eight million) dollars in value

the guy comes in and cuts out 65 trees – pays us 17.5% royalty on how much he has purchased it for from Fiji Hardwood (which is definitely not 8 million) and takes off – leaving the 35 trees rotting in the field

that plot valued at 8 million dollars we have just flogged off for $900,000 to Fiji Hardwood for 65 trees plus 17.5% royalty to Forestry - 2 million or thereabouts give or take

the damage done to the plot is complete – we can’t use the remaining trees left to rot for anything other than secondary value  

the guys walks away with what he wants by picking and choosing.

leaves the whole plot scavanged.

what gives ? we give. hand over fist.

and thats whats happening now.

we are losing money

lots of money.

that billion dollar mahogany asset is a myth – nowhere near it.

we haven’t retained any of its value – let alone structured deals to ensure that we recovered the full value of the plantation.

we are making all these deals and having photo shoots – but the family silver is being flogged off for way below value whilst our economy descends into debt and sub par growth

The Fiji Sugar Corporation’s 2011 operating loss shot up by $18m to $37m compared to $19m the previous year.

This is revealed in the Corporation’s Annual Report released last week. Total accumulated losses stood at $123m as at 31st May.

The published accounts show FSC’s total borrowings at $218m ($105m non current and $113m current).

The Corporation’s independent auditors have commented as follows regarding FSC’s ability to continue as a going concern:

“
The Corporation incurred significant losses during recent years. During the year ended 31 May 2011, the Corporation incurred a loss of $36.4m. The Corporation has generated negative cash flows from operations of $32.9m for the year ended 31 May 2011.

As at 31 May 2011, total liabilities of the Corporation exceed total assets in net liabilities of $102m. The current liabilities exceed the current assets by $97.2million.

The Corporation has significant debt repayment commitments amounting to over $113m during the financial year ending 31 May 2012. Furthermore, the Corporation will require funding to meet its working capital requirements and capital expenditure.

The above conditions and other matters as disclosed in … the financial statements indicate the existence of a material uncertainty that may cast doubt about the Corporation’s and the Group’s ability to continue as a going concern. ”

Surviving on borrowed funds

According to the independent auditors, the Corporation’s survival is dependent on continued financial support from the government to meet its working capital requirements, capital expenditure and to fund its operating losses. As per the notes to the financial statement, the Corporation has:

“ Significant debt repayment commitments amounting to over $114m during the next 12 months, including $72.4m repayable to the Government. The Corporation will require significant funding to meet
its working capital requirements, capital expenditure and fund the operating losses. Total funding requirements for the financial year ending 2012 and 2013 is projected to be around $171.6m…

Given the financial position and the debt levels of the Corporation and recurring losses being incurred by it, the business operations will require restructuring of debt and additional equity or funding. “

Salvage plans:

As the Corporation may not be able to continue as a going concern, the Government is committed to providing the following assistance to bring the required reforms and improvements, says the Report:

• In the short and medium term, the Government continues to provide financial and other support to the Corporation and the sugar industry, the Corporation’s debt is restructured and additional equity and/or funding provided by the Government to enable the Corporation to meet its commitments and obligations on a timely basis;

• Improvements are achieved in cane supply volumes and quality together with significant improvements in mill efficiency and performance with improved TCTS and reduced mill operating cost.

• Sugar industry reforms are achieved and funding for the sugar industry at large is made available for a long term sustainability and survival of the sugar industry and the Corporation.

The Government as the majority shareholder has made a commitment to support and assist the industry given its the importance to the national economy. Government’s support is evident by:

• The Government guarantee of $120 million valid until 31 May 2012

• Funding of $72.4 million provided during the year

• Funding of $56.5 million provided subsequent to balance date

• Meeting the finance cost on the advance of $8.4m from the Sugar Cane Growers Fund. “

FSC admits mill inefficiency

In its notes to the Financial Statements, FSC admits that despite the mill upgrade programme being substantially completed during the year ended 31 May 2011, the TCTS ratio “continues to be high and the mill is [sic] operating below desired efficiency levels”.

The industry, particularly the growers who have a 70% stake in it, have lost hundreds of millions in the last three seasons because of chronic milling inefficiency which continues through to this season as well.

TCTS ratio of 10:1 (tonnes of cane to tonne of sugar) remained consistent from 2001 through to the 2007 seasons, rising to 11.2 (2008), 13 (2009), 14 (2010). In these three years because of milling inefficiency, the industry lost 304,000 tonnes of sugar worth at least an estimated $300m.

At the same time, the price per tonne of cane dropped from $59 ($71 in devalued dollar terms) in 2008 to $49 in the 2010 season. And the industry barons are wondering why the farmers are losing interest in cane growing!

The significant drop in cane price coupled with the massive losses incurred through milling inefficiencies (running into hundreds of millions of dollars in the past three years) have made cane farming a non-profitable enterprise. Farmers have been thoroughly demoralized and will need substantial assistance to continue in cane farming. So far, compared to the millions of taxpayers’ funds that have gone to prop up FSC, monetary assistance to growers has been paltry. Whatever assistance has been given, is largely in the form of loans.

Meanwhile, a large delegation, headed by the interim Prime Minister and Minister for Sugar, is on its way to London to attend a two day ISO seminar… ” to learn from other leaders in the industry worldwide on how to further improve our systems” says FSC chairman Abdul Khan.

The trip is estimated to cost around $250,000, according to industry sources.

By Fiji Labour Party

Sources report that Fiji’s strongman Frank Bainimarama is not interested to meet Cakaudrove high chief Naiqama Lalabalavu just yet.

They say the dictator was heard to have said that nothing more is there to be discussed with Lalabalavu, especially with blog reports that he, like Rewan high chief, have not wavered from their stance not to support Frank’s illegal regime.

Frank was also heard saying that Lalabalavu should stop being a hypocrite and to prepare himself for the court case that is before him involving dangerous driving /impregnating a minor from his own village.

These sources say Lalabalavu was given the ultimatum, to publicly support Frank’s junta or face going to jail for perverting the minor.

It is said that Police Commish, Iowane Naivalurua, is very much part of this blackmailing game, however, he was told by his high chief Lalabalavu that he’s prepared to face the music in court rather then to support Frank’s gestapo.

Fiji’s newest TV channel by Fiji Broadcasting Commission is expected to be launched on Friday by the island’s tyrant, Frank Bainimarama.

The new TV channel was made possible by a huge loan taken by its illegal Board and Directors and CEO, Riyaz Khaiyum, from Fiji Development Bank, over and above the free grant they received from Frank’s junta using Fiji taxpayers’ money.

It’s the brainchild of the two Khaiyum brothers Aiyaz and Riyaz who convinced Frank that a dedicated TV channel is necessary to up their ante in brainwashing the Fiji peoples with their censored news meant to oppress them even further by propagating information that support the regime’s self-preservation agenda.

Two days before the launch and Riyaz is busy attacking one of their competition, privately owned Mai TV, by dedicating a special news item that says, “Local TV station accussed of copyright breach”.

Riyaz is accussing Mai TV of selling advertising on a popular documentary without proper rights.

In reply, Mai TV boss Richard Broadbridge have told Riyaz to “mind his own business”.

The two, Riyaz and Richard, are both ex-Fiji TV workers with Fiji TV being the most popular and established TV station among the three by far.

History also show that the two men are Frank regime sympathisers with Riyaz getting the CEO Fiji Broadcasting Commission job through nepotism and croyism via his sibling Aiyaz Khaiyum, while Richard was once the junta appointed chairman of the Fiji Audio Visual Council.

While the two fight over their limited TV programmes, viewers in Fiji say FBC TV have also hijacked free to air Aljazeera from Mai TV with the two stations running similar programmes duplicating content that will surely kill their advertising appeal.

Meanwhile, Riyaz has gone further by seeking a self-grandeous testimony from a twisted old hagger to say something nice about his new TV station.

Riyaz looked to another Frank regime supporter and ex-Minister, Bernadette Rounds-Ganilau, to stroke his ego with her “illegal agent of change” news piece.

Ganilau skirmishly said that what FBC TV must ensure is to disseminate information that is beneficial to the people – i.e one-sided pro-gestapo information that she, Riyaz and many others have helped craft  in their demented view to help prop up an illegal regime in exchange for their salaried paid jobs.

An American businessman and Fiji property owner Ken Honig says he doubts whether any extortion complaint of his would be investigated by Fiji authorities.

Mr Honig says he was forced to pay 22,000 US dollars to officials at Fiji’s Biosecurity Authority in order to leave the country after accusations he had imported a species of iguana.

Fiji’s Attorney General says Mr Honig should submit an official complaint and there will be a thorough investigation.

Mr Honig says he has an outstanding legal bill of 26,000 dollars dealing with Fiji authorities and being asked to file another complaint seems like a cruel joke.

“I filed two complaints in Fiji with the PM’s office, I filed two complaints with immigration, I filed three complaints with CID, Criminal Investigation Division. I attempted to file complaints with Biosecurity but they wouldn’t talk to me. I attempted to file complaints with the Department of Public Prosecutions but they would not meet with me.”

Mr Honig says he was cleared by Fiji police twice after they investigated his property for iguana and he complained about being detained illegally in Fiji.

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A Pacific media watchdog says Fiji’s interim government is cementing its own repressive image by filing another contempt case against the Fiji Times.

The newspaper published an interview with Oceania Football’s Tai Nicholas which included remarks described by the interim regime as potentially undermining and damaging for the administration of justice in Fiji.

The Pacific Freedom Forum says the Fiji Times is once again bearing the brunt of a regime tantrum against freedom of expression.

Its co-chairperson Monica Miller says direct and mediated complaint processes are the way forward to deal with any breaches of media ethics and standards.

“They have a Fiji Media Council and I would have thought that this could be brought up as an issue that the Council would tackle, rather than have the government officials take over. A complaint process is in place and this should be used.”

Monica Miller of the Pacific Freedom Forum.

The organisation has repeated its call for the Fiji regime to lift the Public Emergency Regulations and repeal the Media Decree which put censors in Fiji’s newsrooms.

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