Parliament has approved the government guarantee for the Fiji Development Bank totaling $170 million.
While speaking in his right of reply on the motion for parliament to give the approval for the guarantee, Minister for Economy, Aiyaz Sayed-Khaiyum says opposition members have neglected to acknowledge the fact that every year, since FDB was created, all governments have been approving the guarantee for the FDB to go out into the market and borrow money.
Sayed-Khaiyum also labelled the opposition’s contributions as imbecilic as they talk about issues about Fiji Airways and other matters.
Speaker Ratu Epeli Nailatikau said that imbecilic is not unparliamentary language when a point of order was raised by SODELPA MP, Lynda Tabuya.
SODELPA MP, Ro Filipe Tuisawau also raised a point of order however Ratu Epeli made it clear that imbecile is not unparliamentary term.
Imbecilic means stupid or foolish.
Meanwhile, Sayed-Khaiyum says in 2018 parliament approved a $160 million guarantee to FDB and $143 million was utilised, in 2019 $160 million was guaranteed and $138 million was utilised while in 2020 $160 million was approved and $145 million was utilised.
Sayed-Khaiyum also raised the question what glory days of FDB is SODELPA MP, Aseri Radrodro talking about.
He says when the Prime Minister was the Minister for Finance, hundreds of bad debts for FDB had to be written off.
Sayed-Khaiyum also says the problem is that people come to the parliamentary chamber without clean hands and they pontificate about this.
He further says the CEO of Fiji Airways, Andre Viljoen is a financial expert.
Sayed-Khaiyum says the loan given to Fiji Airways was prior to his appointment as Chairperson of FDB.
He asks where is the conflict as Viljoen did not sit on the board to approve the loan.
The Attorney General also raised the opposition’s continuous obsession with expatriates.
He says the same people do not have problems when we have expatriates as coaches for our 7s, 15s, netball and football teams.
He also says under the SDL government, FDB and FNPF lent to the Momi project which was handled by a person from NZ who is now in prison.
Sayed-Khaiyum says FDB was managing the loan while some people within the FDB management at the time allegedly got the landscaping management contract.
National Federation Party Leader Professor Biman Prasad says the guarantee that the government is giving to the Fiji Development Bank would have been an opportune time to steer the lending out of the $170 million borrowing to specifically help the people.
While making his contributions on the motion, Professor Prasad says they could have had a very clear plan by FDB together with government and the lender, the Reserve Bank of Fiji as to how they want to help the people.
Professor Prasad says the final quarter appropriation statement by the Ministry of Economy presented to the Parliament sometime ago showed that from 1st of May to 31st of July 2018, a sum of $110 million was redeployed from the heads of the budget for disaster rehabilitation.
He says the need probably now for some form of redeployment of funds is bigger than what in his view was bigger than in 2018, which was an election year.
The National Federation Party Leader adds there is still suspicion as to what this money will be used for as he questioned whether some of the money will be used for Fiji Airways.
He says that could be the perception in the absence of the specific details as to what this money will be used for.
Professor Prasad also questioned the Attorney General to clarify whether or not Fiji Airways has asked for an additional loan.
The Attorney General and Minister for Economy will give his right of reply later this afternoon.
SODELPA MP Aseri Radrodro says the government guarantee for the Fiji Development Bank had expired in February, 2021 and what is disappointing is that someone or some people at the FDB slept on the job and failed to note that there are certain requirements that need to met which requires parliamentary participation.
While supporting the motion that government guarantee for the 12 month period from 1st March 2021 to 28 February 2022 (Guarantee Period) for the Fiji Development Bank, government guarantee a sum of $170 million for the guarantee period and that the bank pay a guarantee fee of 0.075% on the cumulative utilized guarantee credit, Radrodro says he understands the Minister for Economy Aiyaz Sayed-Khaiyum was on medical leave and it is not necessary for him to provide oversight over such fiduciary functions.
Radrodro further says the FDB had ample time to bring notice to government that this guarantee needs to be reviewed.
He adds that people who sit on the board of FDB have a fiduciary duty to ensure that the bank do not operate without a proper government guarantee.
Radrodro raised the question on how does the bank ensure that the benefits of these guarantees goes down to the farmers, fishermen and businesses who help in the development of Fiji.
He says while Fiji is under the COVID-19 pandemic they suggest to government that FDB initiates financial loan packages to assist those farmers, fishermen and businesses in need of capital to grow their businesses.
Minister for Economy, Aiyaz Sayed-Khaiyum will give his right of reply later today.
Minister for Commerce, Faiyaz Koya says Prime Minister, Voreqe Bainimarama is not sitting idly by as claimed by SODELPA Leader, Viliame Gavoka.
While supporting the motion for a government guarantee of a $170 million loan for the Fiji Development Bank, Koya says the Prime Minister has had conversations with many people around the world with respect to what can be done and what cannot be done during the COVID-19 crisis.
Koya says Gavoka and other opposition parliamentarians should not be insinuating that the Prime Minister is doing nothing.
He says the country went 365 days free of COVID on a perfectly good template and they are working on what they can do for the people of Fiji.
Koya says this is a combined effort by the whole of government.
He also says the FDB’s presence in the economy is crucial.
Koya says FDB’s mandate is to focus on inclusive and sustainable growth for all Fijians.
National Federation Party Leader, Professor Biman Prasad says they need to think about the injection of money into the pockets of people who will spend almost all of it as it will help the economy.
Professor Prasad says government should also look at how they can save every single cent adding that he has said it before in parliament, why do they need so many assistant ministers right now.
Professor Prasad says as members of parliament, they can survive on $40,000.
He says the guarantee that the government is giving to the Fiji Development Bank would have been an opportune time to steer the lending out of the $170 million borrowing to specifically help the people.
Professor Prasad says they could have had a very clear plan by FDB together with government and the lender, the Reserve Bank of Fiji as to how they want to help the people.
He adds the final quarter appropriation statement by the Ministry of Economy presented to the Parliament sometime ago showed that from 1st of May to 31st of July 2018, a sum of $110 million was redeployed from the heads of the budget for disaster rehabilitation.
He says the need probably now for some form of redeployment of funds is bigger than what in his view was bigger than in 2018, which was an election year.
SODELPA MP Anare Jale is asking the Government to release the audit report that was conducted by an Australian Audting company about the Fiji National Provident Fund affairs which had him and his board removed from their position after the coup of 2006.
The member of parliament before making his contribution to the motion by Alvick Maharaj on the ‘Review of Audit Report on the Procurement of Biomedical Equipment – Ministry of Health and Medical Services and the Audit of Rural Postal Offices Quarterly Returns’, addressed an issue that was raised by the Attorney General Aiyaz Sayed-Khaiyum in his right of reply.
He claimed Sayed-Khaiyum has been insinuating and implying that he as the Chairman of the FNPF board in 2006 and his board members had done some mismanagement in the operation and matters concerning Momi and also the members' funds.
Jale says this is an attack on him and his board and their names and reputation has been tarnished because of the claims.
The SODELPA MP says the military government at the time commissioned an audit company from Australia to audit FNPF affairs.
He says the report has been given to the government and until now it hasn't been made public.
Jale adds if they had done something wrong then they should be held accountable for it but the report should be made public so that all FNPF members in Fiji and abroad can know what really happened.
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