SCAM IN THE SKY?: FNPF "loaned" millions to Air Pacific (Fiji Airways) to BUY new Airbus but WHY are the planes owned by Waqavuka Financing Ltd in Ireland and leased to Air Pacific/Fiji Airways?

27/8/2013

71 Comments

Waqavuka Financing Limited was set up on 28th of January 2013 in Dublin

BROUGHT TO GROUND: Evidence flies in the face of lies that Air Pacific/Fiji Airways own Airbus planes

71 Comments

Air Passenger

27/8/2013 06:16:07 am

Hallelujah! I can't wait to read what one of Fiji's greatest investigative sleuth Victor Lal will reveal soon - as I saw the Airbus fly past Suva, I had a feeling that the illegal regime had baked a pie in the sky! Waqavuka means aeroplane in itaukei - so how come Irishmen have conjured up the name?

KOISUVA- KORO KO SUVA

28/8/2013 03:56:00 pm

Thank you Jesus for opening up this scam for all to see, Thank God the planes were not named after Burebasaga or Rewa.......God is so Good, I mean to look at the plane up in the sky only to be reminded of a chained debt around your neck. No wonder Professor Wardan Narsey mentioned it will take more than 100 year to pay for the loan for purchasing the so called new "AIRBUS". Bloody heel will I let my little sister suffer through paying all this type of new taxes that will be introduced to pay the AIRBUS....to this regime.... to hell with you lot...I will make sure my little sister goes to Australia and only return when their true democracy in Fiji. It's not even new and just see not even three months already the plane needs repairing and maintenance, oilei sa mai lasutaki keda na kai viiti........ This will be the downfall of their election next year............... :)

Ratu Kinikinibua Wainimala

11/5/2023 02:06:57 am

It is quite frustrating and upsetting to see people use Jesus' name to justify their political views or attack others who disagree with them. Remember that ultimately, God is the judge of all people and their actions. Don't try to take God's place or speak for him. Instead, pray for the person you are writing against, and also for yourself. Ask God to guide you and give you wisdom and grace in your communication. I trust that God will work in his own way and time to reveal his truth and will to everyone. I pray that the Good Lord continues to keep you blessed.

All that's hidden shall be revealed as sure as the sun rises in the east and sets in the west

27/8/2013 07:53:26 am

Brace yourselves corrupt illegal Fiji JUNTA! Definitely the mother of all scams to be unveiled soon.

Rogue Airline Trader

27/8/2013 08:08:56 am

Who the hell is Waqavuka Financing Ltd in Ireland which owns the three aircrafts?Vuka or Vuaka - i.e. Bainimarama!

Air Pacific Airbus purchase part-funded by FNPF

Posted at 01:38 on 26 October, 2011 UTC

The CEO of Fiji’s national airline has confirmed the Fiji National Provident Fund is lending the airline money to buy three new aircraft.

“Air Pacific has ordered three Airbus A 330-200s to replace its current fleet of B-747and B-767 aircraft.”

The airline’s CEO Dave Pflieger has confirmed to Fiji media Air Pacific has borrowed about 113 million US dollars for initial funding of the purchase.

He would only confirm the catalogue price of the planes at 200 million US dollars each but would not reveal the planes’ purchase price.

Mr Pflieger has told reporters 85 percent of the funding would be provided by offshore banks.

The first of the three planes will arrive in March 2013.

News Content © Radio New Zealand International
PO Box 123, Wellington, New Zealand

Pliferer

27/8/2013 08:23:14 am

Here’s what CEO Dave Pflieger told the media about the Airbus purchase

What is cost of the aircraft?
“The catalogue price for each of these airplanes is approximately US$200 million each and with respect to FNPF involvement, they’ve helped us with some of the initial down-payment on the airplanes. But majority of the financing, over 80/85 percent, will come from offshore and we’re still in the process of putting those funds together as we speak.

"Because it’s a commercially sensitive deal, I am unable to give details. But again, the catalogue price of the airplane is about US$200 million each. We are already in discussions with the European credit agencies and other banks in Europe to provide the 80/85% financing.”

How much is the loan from FNPF?
In approximate terms, it will be under F$200 million.”

To be paid over how long?
“I can’t get involved with specific terms but I can tell you the interest rate is pretty healthy from our perspective.”
So you are moving away from leasing to purchasing aircraft outright. Will this mean savings for Air Pacific?

“Absolutely. If you analogise this to your daily lives; buying a car over leasing car, it is always cheaper in the long run to buy rather than lease, and the great thing here is not only can we buy, we can also design our own airplanes. So we will be able to customise these and tailor them to be Fiji’s national carrier and not necessarily take in someone else’s used airplane and leasing them. It’s a fantastic opportunity.”

How’s Air Pacific doing financially?
“The short answer is Air Pacific has had a couple of tough years but we’ve been able to put together—with the help of our entire team, our partners, business vendors even aircraft manufacturers—a plan to restore Air Pacific to profitability. It was that plan that allowed us to instill confidence in the aircraft leasing community for the almost new B737 that we got last week and more importantly to be able to borrow money to get brand new airplanes.

I can tell you it was exceedingly difficult to negotiate with FNPF, to make sure they were comfortable that we would be able not only to pay the bills but pay the bills with a healthy interest rate back to them. So from a financial perspective, we are not out of high water yet when you look at being able to get a brand new airplane that’s going to be able to cut down on our fuel burn and our fuel cost by 45 percent from the four-engine gas guzzling jumbo jets we got now. You can see how all of those things will happen in good time, particularly when you are talking about less than 18 months before the airplanes start to arrive. So we at Air Pacific have a heck of a lot to do as a team. We’ve been doing a lot over the past 17 months but I can tell you it’s a team effort and if you look at what you are seeing here in Fiji on a daily basis; on-time, safety, customer service, all of those are considerably better from our perspective. On-time alone is 10 to 20 percent better than what it used to be 18 plus months ago, and more importantly, when you put those in relative terms against our competition. We are now beating the likes of Jetstar and Virgin and Air New Zealand in on-time performance. That’s what you want as a customer, you want to get to your destination on-time.”

Where will A330 fly?
“ When the 330s come, they will fly to the same places. They will go from Fiji to LA, from Fiji to Hong Kong, from Fiji to Sydney, and from Fiji down to Auckland. We will actually have more frequencies because the value of going to a right size airplane if you will is we can better size the supply to the demand.”

Skyfall

27/8/2013 08:27:40 am

Pilfer told Fiji media that they were buying and not leasing the airplanes - if so - why is Waqavuka owning it and LEASING to Fiji Airways:

“Absolutely. If you analogise this to your daily lives; buying a car over leasing car, it is always cheaper in the long run to buy rather than lease, and the great thing here is not only can we buy, we can also design our own airplanes. So we will be able to customise these and tailor them to be Fiji’s national carrier and not necessarily take in someone else’s used airplane and leasing them. It’s a fantastic opportunity.”

Michael Kumar

16/9/2013 01:49:24 am

The Airbus saga reminds me of the time when Air Pacific bought three I'lander aircraft and with the commission Stinson bought all the toy stores in New Zealand.
Could thsi be another case where some one has made commission in between.

Michael Kumar

16/9/2013 01:49:39 am

Michael Kumar

16/9/2013 01:50:03 am

Michael Kumar

16/9/2013 02:02:00 am

Toady Taito's Spokesman

27/8/2013 08:33:08 am

The Air Pacific loan has been secured in the best interest of all Fiji National Provident Fund members. Chief Executive Officer Aisake Taito has reassured that the lending arrangement to Air Pacific was made on a purely commercial and independent basis with strict due diligence process. As disclosed in their Annual Report 2012, the total loan facility was $181 million, not fully drawn given Air Pacific s strong cash position. Air Pacific continues to comply with the payment arrangements and the company has not defaulted nor have they have made a delayed payment.

The interest rate on this loan is 8.75% as disclosed in their financial statements and the interest is paid 6 months in advance. The repayment of the principal and interest amount of this loan means increased returns on members funds, he added.

a Scam

27/8/2013 05:15:29 pm

It all makes sense. What is not true is what Fleabag and Kaiyum and Bainimarama have been telling us. In a sense it is true that Fiji Airways bought some planes (which are not new) but untrue in that Fiji Airways does not own the planes. Normal commercial set up only the real truth was not told.
FNPF loans $200m to Fiji Airways to buy aircrafts. Fiji Airways pays the $200m as an advance on the lease arrangement with
Waqavuka to buy the planes, that is place the deposit. Waqavuka must be a two dollar company which now needs another $800m dollars to pay for the balance purchase price. Only the Government of Fiji can guarantee that loan. Hopefully not the FNPF. Fiji Airways better not collapse because Waqavuka needs the lease payments for it to repay the foreign lenders. And if Fiji Airways collapses, the guarantees are called up and if the government of FNPF cannot honour them, the planes will be seized. The smiling and flying Fijians will be not be smiling or flying anymore or anywhere because they have lost an airline and inherited a bankrupt government/FNPF.
What a scam on the pensioners and the taxpayers.

a Scam

27/8/2013 05:21:58 pm

good on you Victor.
can you get the debentures and charges and other details from Waqavuka's company file in Dublin? we will then find out who the guarantors are and the shareholders, directors, etc.
This explains why none of this documentation can be found in the Fiji Airways company file in Fiji if you can get access to it.

Amoeba

27/8/2013 05:24:05 pm

Waqavuka is just a shell company on behalf of Air Pacific that the German Banks lent the money too who then in turn lease the planes to Air Pacific. Ireland is a popular tax haven where there is not a lot of financial oversight. The three directors of Waqavuka have up to 400 hundred directorships with other shell companies just like Waqavuka. "a Scam" was right, its a normal commercial set up, just that the truth wasnt fully explained by Air Pacific or the interim Govt.

Amoeba

the explanation

27/8/2013 07:21:33 pm

"... the truth wasn't fully explained..." ????

the truth was NOT TOLD AT ALL....LOL

crosseyed Sherlock wannabe

27/8/2013 06:18:45 pm

Nothing dodgy.

Its a shelter to protect Air Fiji and the Fiji Government.

If Waqavuka has problems with loan repayments, Air Fiji is not exposed.

Waqavuka goes into receivership whilst Air Fiji's lease with Waqavuka remains to then be managed by the Receivers appointed by the German Financiers to manage that portfolio.

a Scam

27/8/2013 07:09:26 pm

Sorry Mr/s Cross Eyed but you might be too quick off the mark.
it may be true nothing dodgy, all legit. but the consequences of default and receivership of Waqavuka could be catastrophic for Fiji Airways, Fiji and FNPF. It is definitely not a shelter.
How do you know that the lenders to Waqavuka will be sympathetic and appoint a receiver and allow the Fiji Airways lease to remain. The financier may just take the planes back under its loan conditions. There is usually no obligation on the financier to enter into receivership and honour the borrowers contracts and there is nothing to stop the financier repossessing the planes. Be very surprised if it is different in this case.
If Waqavuka is a two dollar company, and all indications are that it is just a shell with no paisa, then someone/something substantial must have guaranteed the loans to Waqavuka. Usually its the directors or shareholders that will give such guarantees. IN this case it will not be Fiji Airways for sure because if Fiji Airways folds and cannot pay the lease/repayments then there goes the guarantor as well. So it must be either the Government of Fiji or FNPF. Wonder who the real shareholders are.
It is all speculation at this point until Victor Lal gets hold of the company documents in Waqavuka's file in Dublin but the point of Victor Lals post is that Bainimarama and his lot lied to the people of Fiji that Fiji Airways used their FNPF money to buy new planes which means in ordinary language, Fiji Airways owns the planes. The hard evidence of the lie is now revealed.
And it is not a shelter to protect Fiji Airways and the Fiji Government despite what you say. Waqavuka is exposed if Fiji Airways is unable to make the lease payments. And if this transaction follows the usual way it is done then the Fiji Government and FNPF are exposed. So if the tourists stop coming by plane and the tourism industry folds then Fijians are doomed.
There is a saying. if it aint broke don't fix it. Maybe this will fix it broke for Fiji and Fiji Airways.
so bro/sis Cross Eyed don't be too quick to criticize and hurl abuse at Victor until he gets all the paper work from Dublin.

more cross eyed the Victor

28/8/2013 01:18:58 am

Have you seen the lending documentation ?

Can you look into your crystal ball and (pray tell) when Fiji Air is set to collapse ?

Ratu Kinikinibua Wainimala

11/5/2023 02:12:57 am

Oh well hello there. 10 years after your comment, would you care to elaborate further on the conspiracies you cooked in 2013 against Waqavuka and Fiji Airways? Did the company fail? Did Fiji Airways go bankrupt?

So is this LEASE TO OWN arrangement then?

28/8/2013 02:15:44 am

The Flying Pig

27/8/2013 06:34:06 pm

the truth is, that this is not a purchase by Fiji Airways. It is a lease, just like it was with the Boeing 747s and 767. No difference. Except perhaps there might be a buy back or transfer on repayment of all loans by Waqavuka.
This is not the same as buying a car under finance or hire purchase. The bank/finance company lends you the cash, you buy the car the car is registered in your name and the bank/financier registers its bill of sale/mortgage over the vehicle. when you default the bank/financier repossess under its bill of sale and you lose the car. But you own the car right from the time you hand over the cash to the seller.
In Fiji Airways case it seems that Waqavuka bought the airplanes with borrowed money (from overseas financier) and Fiji Airways leases the planes which is the repayment for the money borrowed by Waqavuka. Fiji Airways must also repay the $200m borrowed from FNPF which would have been used to pay the deposit for the purchase of the airplanes by Waqavuka. Until the loans are paid back by Waqavuka ownership of the planes will not be transferred to Fiji Airways. How long do we have to wait for this to happen??
Fiji Airways must have a connection with Waqavuka, either in the board of directors or as shareholder.
If this is the case and Waqavuka is not there to make a profit out of Fiji Airways but is there only as a legal vehicle for the transaction, then in terms of finance and cost, it is the same as in the car purchase analogy. But legally very different. So to say that Fiji Airways own the planes is a deliberate lie.

WHY WAQAVUKA?

28/8/2013 02:35:45 am

Why Waqavuka DID NOT apply for FNPF loan and not Air Pacific?

Is it not the FACT that Waqavuka did not even exist in the radar when Air Pacific applied for loan to buy outright the 3 Jets.

That means any other deals where a third party is concerned ... one must check of pecuniary conflict of interest, thus criminal act which we can know when Victor reveals more details of people behind the Waqavuka Company.

Notwithstanding IMF had said Fiji had capability to take on extra debt so Air Pacific was able to enter the loan directly as is Fiji Government and Qantas owned.

Had this rogue deal got anything to do with Qantas and IG on Qantas's shares in Air Pac?

Is Pflieger's departure connected to this rogue twist of events and that is why he left in a rush?

MANY MANY can of WORMS to open up once Victor gives out more.....

Liar

28/8/2013 02:15:45 am

We shouldn't believe in anything written by Victor Lal. Isn't he the same dude who claimed that my leader Mahendra Pal Chaudhry was hiding millions in Australian bank accounts?

Daddy Boy

28/8/2013 02:31:40 am

Rajendra Chaudhry
about an hour ago
2013

Look closely at the ownership plates on the Airbus as per pictures below. The owners are Waqavuka Financing Limited - not FNPF or Government of Fiji. WFL was incorporated in late January 2013. Would any reasonable person do a $1.5 billion deal with a company of such young age? Why go through WFL when Government of Fiji could have easily secured funding in its own right? What was WFL's fees? Who, from Fiji, arranged for the fees structure and quantum? The planes were purchased from Airbus from Fiji taxpayer funds in part and Fiji taxpayers will have to pay back each and every dollar of this loan so they have every right to know.

Daddy Boy

28/8/2013 02:44:08 am

Waqavuka is young company but guarantee to Waqavuka's loan is Interim Government thus secured by Fiji. But if that deal is right or wrong, the Legal Advisor Khaiyum has secured departure by the immunity clause and no call back personal liability so that they can keep the loot.....like the hidden millions...

Michael Kumar

16/9/2013 01:42:09 am

What Victor Lal wrote about M.P.Chaudhry is all TRUE. On 1/11/2000 he made a deposit of A$503,000 and on 22/2/2001 he made another deposit of A$486,890 and the last on 15/4/2002 of A$514,148 making a total of A$1,504,038.
Go and ask your leader where these moneies are. Don't blame others for the truth.

Michael Kumar

26/12/2013 06:04:11 pm

What Victor Lal wrote is quite true. Mr. M.P.Chaudhary deposited A$503,000 on 1/11/2000 and again A$486,890 on 22/2/2001 and the last one A$514,148.50 on 15/4/2002. The total was A1,504,038.50. Where did this money come from?Why in Australia?
Your guess is as good as mine.

Michael Kumar

26/12/2013 06:04:30 pm

Michael Kumar

26/12/2013 06:05:13 pm

Amoeba

28/8/2013 02:43:06 am

Hows that trademark application made by Air Pacific going? Has the interim AG approved it yet?

Amoeba

Fiji Airways Spokesman

28/8/2013 02:48:27 am

Fiji Airways Takes Delivery of First News Airbus A330

March 16, 2013- Nadi, Fiji – Air Pacific (soon to be Fiji Airways) today announced that it had successfully taken ownership and delivery of its first-ever brand-new wide body aircraft, the Airbus A330-200.

The aircraft is the first of three ordered by the airline in October 2011—the other two are scheduled to be delivered in May and November, respectively. The transfer of title and delivery ceremony was completed in Toulouse, France on Thursday March 14th with Airbus officials, Air Pacific executives, and Air Pacific's own aircraft delivery team.

The delivery ceremony followed yesterday's announcement that the airline's international European banking partners had signed the financing agreement for the first of three new A330-200 aircraft it is purchasing, with a commitment to finance the two additional aircraft due to be delivered in May and November of this year, and plans by the airline to make early repayment of some initial Fiji National Provident Fund (FNPF) pre-delivery financing.

anil

28/8/2013 03:53:25 am

I thought Victor was an intelligent lawyer. However, he has let me down.

If he was a commercial/corporate lawyer he would have known that the company registered in Ireland is a shelf company to facilitate the purchase from a european company (airbus) and european lenders (german banks). Such arrangements are normal commercial arrangements which a local corporate lawyer would tell you is above board. Ask richard naidu to willie clark.

Air pac did a similar arrangement when it bought the b737 with a company it registered in the cayman islands.

intelligent Anil,

28/8/2013 04:18:26 am

So are the shareholders of Waqavuka Air Pacific in which Qantas has 40% shares?

hard case

2/9/2013 11:50:42 pm

anil the ownership plate says that waqavuka owns the plane which is leased to Fiji airways and mortgaged to some banks and lenders.
if Fiji airways owns the planes the plate would read... this plane is owned by Fiji airways and mortgaged etc. u don't need Richard hardcase and wirey duck to advise you.

here you go again, air pac never bought any airplanes...they leased them all boing or airbuses....the point about all this is why tell the people that Fiji airways bought new planes. only suckers like u will believe it,

FNFP Member

28/8/2013 04:07:09 am

If so, why tell the people of Fiji, Anil, that Fiji Airways owns it? Also, can FNPF tell us, where did our $200million go to - to Waqavuka or to the German bank?

2/9/2013 11:11:25 pm

to waqavuka to pay the French builder of the planes for the deposit for the planes...lease payments in advance to waqavuka

Fijileaks Reader

28/8/2013 04:16:13 am

Anil
I agree but you are basing your comments without Victor having provided any docs etc - how do we know if has docs etc which will reveal huge kick-backs etc

Decree Drafter

28/8/2013 06:52:28 am

We mustnt forget Aiyaz Khaiyum's decree in which he boasted that we didnt want foreigners to take control of Fiji's national airline Air Pacific. if so, why is an Irish self-company owning Fiji Airways?

Civil Aviation Decree Q & A
March 29, 2012 | Filed under: Business | Posted by: newsroom

Source: OFFICE OF THE ATTORNEY GENERAL

The following questions and answers pertain to the passage of the Civil Aviation (Ownership and Control of National Airlines) Decree 2012.

Q. If this has been going on since 1998, why didn’t you act before today?

A. We cannot speak for the actions or inactions of prior Fijian governments, which have allowed foreign citizens to control our national airlines. This situation only recently came to our attention following a routine investigation into these legal requirements.

Q. Isn’t it true that you are simply nationalising Air Pacific and depriving Qantas of its shares and shareholder rights?

A. No. That is absolutely false and misleading. Ownership of shares remains with Qantas, and dividends will be paid as and when declared.
Air Pacific and Pacific Sun are Fiji’s only international and regional airlines, and they are currently majority-owned by Fijians.
However, since 1998, minority foreign shareholder Qantas has maintained effective control of these airlines through supermajority and veto rights over significant areas of the company.
Fiji welcomes the investment of Qantas or any other overseas airline in our national carrier and its wholly-owned subsidiary.
The decree will not change the ability of Qantas and other foreign citizens who are current minority shareholders to remain as investors in Air Pacific and its wholly-owned subsidiary, Pacific Sun, or for them to sell their current shares or buy more shares.
It merely requires that they have normal and customary minority shareholder and board rights, and that per international requirements and laws, Fijians must have substantial ownership and effective control of the country’s national airlines.
The Fijian Government encourages private sector investment and has moved to divest Government shares in numerous enterprises.

Q. Is this move a result of differences with Qantas regarding a price for its shares that it wants to sell and Fiji wants to buy?

A. No. That is absolutely false. Fiji welcomes the investment of Qantas or any other overseas airline in our national carrier and its wholly-owned subsidiary.
The Decree will not change the ability of Qantas and other foreign citizens who are current minority shareholders to remain as investors in Air Pacific and Pacific Sun, or in any way affect their ability to sell their current shares or buy more shares.
It merely requires that Qantas and all other minority investors have normal and customary minority shareholder and Board rights, and that per international laws and requirements, Fijian citizens must have substantial ownership and effective control of any current or future national airlines.

Q: How will this Decree benefit the citizens of Fiji?

A: The move by the Bainimarama Government now corrects the activities of prior Fijian governments, which appear to have allowed foreign citizens to control Fiji’s national airlines.
Since Air Pacific is responsible for carrying more than 70 per cent of visitors to Fiji and the tourism industry contributes 33 per cent towards the Fijian gross domestic product, its success is critical to the health of the Fijian economy and the livelihoods of Fijians.
Fijians need a viable national carrier.

Q: Will this affect airlines that operate domestically?

No, foreign persons are allowed to own up to 100 per cent of an airline that operates domestically.

makajodo

28/8/2013 08:42:54 am

The regime new very well that their deal on this is fucked up...Now they have to pay fnpf and wfl back....I have no doubt that the regime is pocketing some Denaro....!!!

Monte Cristo

28/8/2013 12:29:36 pm

I think the big issue here is the one that is constantly harped upon by various persons in Fiji -

That of "transparency and accountability"

Perhaps this is all just a convenient legal fiction to act as an easy enabling device to get this all done as suggested by Anil.

But the issue is why was this not revealed at the outset given the hype over the above mentioned "TnA"?.

Remember that what got Martha Stewart into trouble re insider trading was not that she had indulged in said trading but that she lied to Federal investigators about it.

Obstruction.

Even "administrative fees" of 1% of the total monies passing thru Waquvuka would be quite a tidy sum of money.

A spade is a spade

28/8/2013 05:30:39 pm

From U.S Securities and Exchange Commission:

SEC Charges Martha Stewart, Broker Peter Bacanovic with Illegal Insider Trading

FOR IMMEDIATE RELEASE
2003-69

Washington, D.C., June 4, 2003 -- The Securities and Exchange Commission today filed securities fraud charges against Martha Stewart and her former stockbroker, Peter Bacanovic. The complaint, filed in federal court in Manhattan, alleges that Stewart committed illegal insider trading when she sold stock in a biopharmaceutical company, ImClone Systems, Inc., on Dec. 27, 2001, after receiving an unlawful tip from Bacanovic, at the time a broker with Merrill Lynch, Pierce, Fenner & Smith Incorporated. The Commission further alleges that Stewart and Bacanovic subsequently created an alibi for Stewart's ImClone sales and concealed important facts during SEC and criminal investigations into her trades. In a separate action, the United States Attorney for the Southern District of New York has obtained an indictment charging Stewart and Bacanovic criminally for their false statements concerning Stewart's ImClone trades.

The Commission seeks, among other relief, an order requiring Stewart and Bacanovic to disgorge the losses Stewart avoided through her unlawful trades, plus civil monetary penalties. The Commission also seeks an order barring Stewart from acting as a director of, and limiting her activities as an officer of, any public company. Stewart has been Chairman and Chief Executive Officer of Martha Stewart Living Omnimedia, Inc.

Stephen M. Cutler, the SEC's Director of Enforcement, said: "It is fundamentally unfair for someone to have an edge on the market just because she has a stockbroker who is willing to break the rules and give her an illegal tip. It's worse still when the individual engaging in the insider trading is the Chairman and CEO of a public company."

Wayne M. Carlin, Regional Director of the Commission's Northeast Regional Office, said: "The Commission simply cannot allow corporate executives or industry professionals to profit illegally from their access to nonpublic information. The coordinated action announced today by the U.S. Attorney's Office shows that the consequences for those individuals will be even greater if we uncover evidence that they obstructed our investigation."

Stewart's Dec. 27, 2001, ImClone sales came as ImClone and the market anxiously awaited an imminent decision from the Food and Drug Administration on one of ImClone's key products, a cancer treatment called "Erbitux." Bacanovic's unlawful inside tip was that other Bacanovic clients — ImClone's CEO, Samuel Waksal, and Waksal's daughter — had just placed orders to sell all the ImClone stock they held at Merrill Lynch. At the time, Waksal secretly knew that the FDA was about to reject ImClone's Erbitux application. Information about the Waksals' efforts to sell was confidential under Merrill Lynch policies, which prohibited employees from disclosing client transactions or effecting client trades on the basis of other client transactions. Had information about the Waksals' efforts to sell been known publicly, it would have signaled insider pessimism at ImClone about the FDA decision, the prospects for Erbitux, and the future of the company, according to the complaint.

The Commission alleges that, during the morning of Dec. 27, 2001, Bacanovic instructed his assistant, Douglas Faneuil, to tell Stewart that Waksal and his daughter were selling all the ImClone stock held in their Merrill Lynch accounts. During a subsequent telephone call, Faneuil conveyed that information to Stewart, who promptly instructed Faneuil to sell all 3,928 shares of her ImClone stock. The next day, Dec. 28, 2001, ImClone announced that the FDA had decided not to accept ImClone's Erbitux application for filing. By the close of the next trading day, Monday, Dec. 31, 2001, the price of ImClone stock dropped 16% to $46 per share. By selling when she did, Stewart avoided losses of $45,673.

The Commission alleges that Stewart and Bacanovic went on to lie when the Commission staff and criminal authorities questioned them about the facts surrounding Stewart's sale of ImClone stock. Stewart and Bacanovic fabricated an alibi for Stewart's trades, stating that she sold her ImClone stock because she and Bacanovic had decided earlier that she would sell if ImClone's stock price fell below $60 per share. In addition, Stewart told the government that she did not recall anyone telling her that day that any of the Waksals were selling their ImClone stock.

Pursuant to a separate Commission order issued this morning, the Commission has barred Faneuil from association with a broker, dealer, or investment adviser. The Commission acknowledges the assistance of the U.S. Attorney's Office for the Southern District of New York and the Federal Bureau of Investigation in the investigation of this matter.

Contact: Wayne M. Carlin (646) 428-1510
Barry W. Rashkover (646) 428-1856

See Also: Litigation

Insider trading - never a good thing

28/8/2013 05:38:04 pm

People don't go to jail for lying per se - just ask iCJ Gates.

However, when people lie to obstruct/block/stall investigations into suspected criminal activities and deliberately lead investigators on a wild goose chase down the tunnel to Alice's Wonderland - that's an entirely different matter.

Amoeba

28/8/2013 01:11:54 pm

Hows that trademark application made by Air Pacific going? Has the interim AG approved it yet?

Amoeba

ashamed investor

28/8/2013 05:23:20 pm

scary, the Bible is always true... whatever is hidden will be reaveled on top of the roof

anil

28/8/2013 10:17:26 pm

The loan from fnpf was for the pre-delivery payment or deposit. No body manufactures goods worth hundreds of million dollars with such deposits which show that the buyer is commited.

The loans by the german banks means that fiji airways bought the plane, otherwise there was no point to borrow if you will lease or rent the planes.

As I said earlier, given that the deal and loans was from european insitutions, it makes sense to register a shelf company in ireland.

So where has the fnpf money gone? To airbus. Where has the german loan money gone? To airbus.

With regards to sidekicks etc. Airbus is a listed company in the french stock exchange. It would not be good governance and unethical for a large listed company to pay bribes etc as this would be reported in its accounts etc. This company is not a chinese, indian company and has to live up to the highest standards.

Offcourse, some of you will continue to bash the deal as you will see things through your tainted eyes and heart. M not a regime stooge but merely raising some pertinent facts.

The details and hard facts wanted, not airy tales.

28/8/2013 10:49:26 pm

That simple, huh, @ 'where has the fnpf money gone? To airbus. Where has the german loan money gone? To airbus.'

Let's wait for the hard facts then - big tevoro hidden in the details?

anil

29/8/2013 04:25:35 am

My friend, what part of the loan detail that you don't get. Maybe, its too complicated for your pea brain

Pertinent facts my foot

29/8/2013 05:41:45 am

And what was so complicated about the entire transaction if it was all above board, that your collective corporate(?) pea brains couldn't even figure out how to explain it very simply, very candidly in layman's term to the workers of Fiji? Workers whose earnings you criminal collaborators are playing around with.

The whole deal stinks.

Will await to hear the real "details" on Waqavuka, as your tainted and slanted take on the airbus scandal is hardly satisfactory.

anitiwit

2/9/2013 11:19:59 pm

anil, if all the money went to airbus and u are saying the money went from Fiji airways, via waqavuka or german bank whatever, why is the Fiji airways not the owner? you not making sense.
if what you say is true, then all loan documents and charges and debentures and guarantees should be in the Fiji airways company file in Fiji.
and whats the point of having waqavuka? unless you want to challenge some of the money thru the overseas two dollar company for some illicit purpose. u sound like a bank clerk who has no idea what the real commercial world is...the ownership plate does not show Fiji airways as the owner but waqavuka. you cannot get around that fact. that's the truth. Fijians have been told something else...a complete lie. just give up man/woman/heshe/bothways. you defending a lie by shooting the messenger

Amoeba

28/8/2013 10:46:56 pm

Anil,

You make valid points, but if you think Airbus is beyond offering bribes or the like maybe just google "airbus and kickbacks" or "airbus and ethics" and see the search results.

2/9/2013 11:29:21 pm

anil just talks a whole lot of confused crap

anil

29/8/2013 04:21:11 am

Amoeba

I don't have not seen any eveidence of kickbacks on the airbus details.

Pls provide facts so that we clear all the heresay. Until then its accusations without proof.

ass

2/9/2013 11:27:19 pm

anil if you are sitting behind your cashiers window in Fiji you will not be seeing any evidence obviously. just hold your ass and wait for victor to do his work instead of going in half cocked.
you talk like u kno heaps but you no bugger all about the real world. hearsay is often truth and not always lies anil.

Forever Fiji..

29/8/2013 04:32:14 am

Maybe some things are not meant to be revealed...if they are investing on something beneficial to the country,then keep it up...m in no state to judge right away coz I might be wrong...now that I had just learnt bout the loans,I would make attempts in whatever way to promote Fiji Airways so repayments of loans are done fast n we are freed...May God Bless Fiji!!!

forever cheap propagandists of a tinpot dictatorship

29/8/2013 05:48:16 am

Spoken like a 30 pieces of silver-regime-lackey. Bought, sold and now a robot selling a lie.

Joji Waqa link

29/8/2013 03:47:58 pm

"maybe somethings are not meant to be revealed" My word!!!!!! You must really be in lala land. Then where have the transparency and accountability that was vigorously promoted by this government gone to. Also to lala land I presumed. If they are investing on something beneficial, they are using the hard earned money of three quarter of the nations population and guess what, the three quarter have the right to know where and how their money is being spent.

Nanumi Viti

2/9/2013 08:58:58 pm

Forever Fiji.....

Let's not forget that we will still be leasing the plane not solely owned.

Fiji Ever Fiji

29/8/2013 04:57:20 am

Forever Fiji- That is not the issue here - the issue is the regime lied to us!

Amoeba

29/8/2013 06:54:08 am

Anil, kickbacks are surreptitious by be definition. Thus you will not readily find evidence of them on financial statement or records. And what airbus "details" do you refer to? What is published on the airbus website or a redacted purchase agreement or press statements by fiji airways? Hardly definitive. As i said, airbus is known for questionable commercial behaviour.

Amoeba

29/8/2013 07:06:13 am

But look at the choice of airbus itself. If the purchase of the A330 is the clear cut best choice in planes why are we still hearing of its deficiencies in payload? This has been raised, on more than one occasion, on social media. And seemingly by those in the know from within the organisation. More than a whim is required to alter the cultural shift in choosing a vastly different plane to run the fleet.

richard

31/8/2013 09:23:27 pm

The simple test to believe such allegations is if it is leased than why have fiji Airways borrowed the funds from 2 reputable german banks.

I therefore believe that the planes have been bought by FA. However, like our house which is mortgaged or a bill of sale for our vehicle, we don't own it in our names until the loan has been fully paid.

Victor has done a good research but I don't think it waa complete.

Fiji Airways Pilot

2/9/2013 04:15:34 am

Those ownership plates are taken from inside the Pilot's Cockpit!

2/9/2013 11:07:34 pm

Richard hardrock, how do you know Fiji airways borrowed the money...it they did then it will appear in the company documents in Suva. they don't exist so Fiji airways did not borrow from these banks.
what these scamers have done is not the only way to do it. if you are going to get kickbacks etc, you would do it the way the regime has done it through waqavuka.
the true picture will come out when victor gets hold of waqavuka documents in Dublin, if he can. we can still find out the truth even without the documents...so there anil and Richard this is a scam. the regime lied about fji airways owning the planes. if they said a financier owned the planes then people will question. beta keep the ignorant Fijians in the dark. that's the regime modus. that's the only thing predictable and true about this military government and dickatatorship.

read it

2/9/2013 11:44:12 pm

Richard and anil, do u both have a reading problem or what....just read the ownership plate...it says the plane is owned by waqavuka and leased to Fiji airways..and mortgaged to certain banks and lenders. u both beyond help if you don't understand that..

Repost from C4.5

1/9/2013 04:04:13 am

On Sep 01 - Anonymous Commented - "Fiji Airways flight FJ910 scheduled to leave Sydney International Airport for Nadi was delayed from 1pm to 8pm in the evening. Passengers only knew of the delay when they arrived at the airport including 30 class 8 students from Veiuto Primary school. The reasons for delay as displayed on the airline checking counter:"CABIN CREW SICKNESS". As a Fijian, I was really ashamed, as other travellers in other airlines were giggling amongst themselves. SA LEVU VAKAMADUA RE!! What is happening Fiji Airways? ..."

Fijigal

2/9/2013 07:25:18 pm

On 22/06/13 there were supposed to be two flights to Sydney one at 9am (FJ910) and one at 3.30pm. I checked in for FJ910 that morning only to be know that the flight would leave at 3.30pm (so the 2 flights were combined). We were not told directly by Fiji Airways the reason of the delay but I heard from other passengers that there was SHORTAGE OF CABIN CREW to man the flight. We boarded the plane at about 2pm to find no air-conditioning on the plane, we sat for about 1.5 hours in the plane and were told to disembark and proceed to the transit lounge. We waited at the transit lounge from 3.30pm till about 7pm when we were told there would be no flights to Sydney that day and would be billeted to hotels.
I can imagine the huge amount of hotel bills Fiji Airways had to to pay for about 200 - 300 passengers that day.
We were told to check in at the airport at 4am the next morning at the first flight would leave at 7am. Check-in counters did not open till 6am, flight did not leave till 9.30am on 23/06/13.
Ever since my experience with Fiji Airways that day, I have read on the news numerous other Fiji Airways flight delays, which makes me prefer to avoid Fiji Airways as much as I can when I make travel arrangements. The repetitions of flight delays have become rather a nuisance as it disrupts travel plans and incurs a negative impact both financially and emotionally.

On Saturday 31/08/13 I learned of a friend’s family (grandmother & 2 children) traveling from Nadi to Pago Pago via Apia, W/Samoa. Their flight at 4am that day was cancelled to 8pm, however, their luggage could not come with them on the flight and would follow on Wed 04/09/13. Even though, they are now safe in Pago Pago, the mother of the children will need to travel to Apia on her own expenses to pick up and transport their luggage to Pago Pago.

Something is seriously wrong with Fiji Airways and it would be helpful if responsible parties looked into the root cause of the problems and find ways to eliminate them.
I hope Fiji Airway has aggressive marketing skills (refer to http://www.usatoday.com/story/todayinthesky/2013/06/27/fiji-airways-officially-debuts-today-with-new-look/2463343/) to effectively counteract the negative impacts these flight delays have incurred.

2/9/2013 11:38:13 pm

cabin crews are being overworked to make up flight crews so the planes can fly. pilots also are being pushed to their limits. the so called new planes seem to sit outside the hangar in nadi more often that they are in the air or at the airport itself. today two of the airbuses where parked at the hangar, one inside and the other directly behind it...its been raining here in nadi but I don't think they are there to be washed and dried.

pilot

3/9/2013 01:06:47 pm

the catch cry amongst the pilots now is...if it aint boeing it aint going...lol how true.

Undha

4/9/2013 05:29:05 pm

Thing is if even if the Airbus planes’ loans were paid off (if ever) they will not be owned by Fiji Airways. Well, not at that very instant anyway. What would happen if Waqavuka did eventually pay off the loan to the German Banks? Would Waqavuka then transfer ownership to Fiji Airways and then cease to exist as an shell corp? or maybe just remain dormant until a similar situation arises again…?!

mike

26/12/2013 09:07:52 am

Airbus Affair is a huge investigation in Canada where airbus bribed Canadian officials to choose airbus over boeing.
Similar incident in France where airbus bribed French officials.

ALL YOU NEED TO KNOW IS WHO WERE THE FIJI OFFICIALS THAT WERE PUSHING FOR AIRBUS OVER BOEING,AND I GURENTEE YOU THEIR HANDS ARE DIRTY

SCAM IN THE SKY?: FNPF "loaned" millions to Air Pacific (Fiji Airways) to BUY new Airbus but WHY are the planes owned by Waqavuka Financing Ltd in Ireland and leased to Air Pacific/Fiji Airways?

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