PM confirms $20M loan taken by TLTB to buy FHL shares was paid back in 2010

Prime Minister Voreqe Bainimarama has confirmed that the $20 million loan taken from the government by the iTaukei Affairs Board to buy Fijian Holdings Limited shares was paid back by the board in 2010 after the board took a loan from FHL.

While answering a question raised by SODELPA MP Adi Litia Qionibaravi, the Prime Minister said the loan agreement was finalised on 16th August 2010, and the loan taken by the iTaukei Affairs Board from FHL has also been fully repaid to FHL in 2013.

Bainimarama says in September, 1987 the then government had announced its 9 point plan where one of the points was the desire to accelerate the participation of the iTaukei in businesses in Fiji.

He says in August 1989, the then government provided a $20 million interest free loan to the iTaukei Affairs Board as part of its plan.

Bainimarama says the loan repayment was to start in 1989 and finish in 2008.

He says the iTaukei Affairs Board used the proceeds from the loan to buy 20 million B class FHL shares with a par value of $1 per share.

However in December 2002, an act of parliament was passed to convert the loan to a grant to iTaukei Affairs Board.

Bainimarama says consequently the iTaukei Affairs Board approved the transfer of 10 million B class shares to iTaukei Affairs Trust Fund Board and 10 million shares to the 14 provinces to be held in trust by the iTaukei Affairs Board.

He says in June 2010, the government decided that the $20 million issued to the iTaukei Affairs Board in 1989 should remain as a loan from government and needs to be repaid as soon as possible.

ITaukei Affairs board used the loan proceeds from FHL to pay off in full its loan with government.

Bainimarama stresses that it was a loan taken from government in 1989 and from the start it was intended to be paid back to the government.

The Prime Minister also says that there was a difference in returns on shares between A and B class FHL shares.

He says the dividend equalisation started in 2009 and from 2013 the dividend is equal now between A and B class shares.

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