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STICKY APPOINTMENT: Another conflict of interest as Joe Rodan is appointed a director on the Fiji Sugar Corporation board; he is an employee of the South Pacific distillery who buys molasses from FSC

28/5/2015

14 Comments

 
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The Fiji Sugar Corporation has recorded profits for the past three years.

The financial reports that were revealed at the annual general meeting in Lautoka yesterday showed a $1.8m profit for 2012, $6.2m for 2013 and $6.9m for last year.

Executive chair Abdul Khan says the AGM was successful and they had received positive comments from shareholders.

“If you look at the positives for the company – the actual operating cost is coming down – that is positive – the efficiency gain is there in the form of TCTS, the profitability has been declared at $6.9m for the year 2014.”

Khan says one of the few concerns raised was the challenge of tackling world sugar price in future.

He says the company is in a better position now and the actual operating cost of FSC is coming down.

Abdul Khan says the financial statements for the past 3 years were not released as the report has commercially sensitive information.

He says the industry wasn’t in a good shape for the past 3 to 4 years and they withheld the financial reports to protect the shareholders from compromising their position.

Meanwhile three new directors were appointed to the FSC Board yesterday.

They are Joseph Rodan, Arvind Singh and Tevita Kuruvakadua.

Alipate Qetaki and Dijendra Singh have retired.- See more at: http://www.fbc.com.fj/fiji/29857/fsc-records-profits-for-past-3-years#sthash.o9dr6b8K.dpuf


$225m reality


THE Fiji Sugar Corporation's liabilities exceed its current assets by $225.4million, its 2014 annual report released at the company annual general meeting in Lautoka yesterday revealed.

Independent auditors BDO Chartered Accountants also reported that the corporation incurred losses during recent years.

"During the year ended May 31, 2014, the corporation incurred a loss (before reversal impairment loss) of $28m," the external auditor said.

The corporation, it said, was also not generating adequate cash flows to meet all its commitments and obligations as and when they fell due.

Last week, Parliament agreed to extend the Government guarantee on the company's $120m loan with ANZ Bank.

"As at May 31, 2014, total liabilities of the corporation exceed total assets resulting in net liabilities of $86.9m.

"The current liabilities exceed the current assets by $225.4m," the report stated.

It added that the corporation had significant debt repayment commitments amounting to $213.2m during the financial year ending May 31, 2014.

"Furthermore, the corporation may require funding to meet its working capital and capital expenditure requirements."

It stated that the above conditions and other matters of the financial statements indicated the existence of a material uncertainty that cast significant doubt about the corporations and the group's ability to continue as a going concern.

"The appropriateness of the going concern assumption on which the financial statements are prepared is critically dependent on the government's support to the corporation and the sugarcane industry, the restructuring of the corporation's debt and additional equity to enable the corporation to continue in operation for at least 12 months.

"The appropriateness of the going concern assumption is also dependent on improved quantity and quality of cane supply together with improvements in mill performance and other factors."

In his statement FSC executive chairman Abdul Khan said 2014 was a challenging one for the corporation with even lower world sugar prices and the convergence of the European Union prices towards the lower world prices. He said the company stayed steadfast in its strategy of continuous incremental improvements in its sugar manufacturing operations as it approached world best practice in terms of sugar extraction.

He said a major achievement for the company and the farmers was the record payment of sugarcane, which at $88.49 per tonne of sugarcane was the highest in the history of the industry.

The report said the company recorded a modest profit of $6.9million for the year - a slight increase from the previous year of $6.3million.

"This means that the company has been able to maintain its profitability over the last three years.

"The contributing factors to the retention of profitability over the last three years have been an increase in operating revenue from $199million to $224million. There was an increase in the cost of sales by $19.4million due mainly to the additional payout to the farmers. Source: Fiji Times



14 Comments
Chiku
28/5/2015 05:10:43 pm

Conflict of Interest ceased to be an issue in appointments since the Bainimarama takeover . It was only an issue of nepotism , favouritism and bad governance practice under past governments and what the dictator Bainimarama called " old politicians".
When they did that it was wrong. But when the Bai- Kai gang do it it's perfectly ok.
What a bunch of hypocrites and liars!

Reply
rajend naidu
28/5/2015 06:20:04 pm

Editor,
In his letter ' Don't blame the game ' smh 29/05, Bob Harris captures rather succinctly the reality surrounding the FIFA corruption scandal which is making waves around the world.
He writes :
" It is long overdue but it looks like the ugly side of the beautiful game will finally be revealed. Thanks to the tenacity of the US Department of Justice, the global football community, may finally get something back from the millions of dollars ( around $ 200 million in fact ) that were trousered by corrupt FIFA administrators and officials ( ' FIFA scandal has officials arrested for corruption' May 28 ).
It is important however to keep in mind that this is not about the sport of football. This is about the ABUSE OF POWER ( my emphasis ) combined with corporate and and institution agreed. It has taken grassroots community action against the multinational companies that FIFA depends on for sponsorship ... Let us just hope that we don't score an own goal and the guilty parties walk away unblemished ".
Remember we scored an own goal by being a party to the farcical elections we had under an arbitrarily imposed constitution and the mob who carried out the coup and imposed dictatorial rule in the country walk away unblemished?
And remember instead of putting the blame where it rightly belonged that is on the power grabbers we blamed democracy for all our ails.
Remember like the mob in FIFA we too have our abusers of power.
Sincerely,
Rajend Naidu
Sydney

Reply
Chorimarama
29/5/2015 05:53:47 am

Let's start with the top.

Baini pocketed (butaku) $184,740-29 of bogus leave pay. This chor should return that money - that is not his father's money. Sala Chor.

Reply
saka
28/5/2015 07:04:04 pm

I saw Pio Tikoduadua looking well driving his twin cab yesterday. He doesnt look sick as a terminally ill patient.

Can someone highlight what actually transpired before he resigned? Is AG involved?

Reply
Dekho
28/5/2015 09:05:53 pm

I know Fiji is now no longer a race society because Fiji's " benevolent" dictator had decreed that. Everyone in Fiji is now equal regardless of race we are led to believe. But I would still like to know whether Joe Rodan is a kaiviti, kaivalaga, kaidia, or Kailoma. I know in the new Fiji where everyone is equal kailomas are more equal.

Reply
Tuvuki
29/5/2015 01:52:14 am

@Dekho28/05/2015 8:05pm Before you get an answer to that question, let me ask you another: How may generation does it take one to be a Kaiviti? (The same question Victor Lal posed to the coup perpetrators and apologists in 1987.)

How is it relevant that Joe Rodan's ancestors were English, Indian or African? The man is proud and patriotic Fijian who has served his country well (in business and sports), and continues to do so. Unless you can prove that your forefathers sprouted from these lands the same way our indigenous trees and plants did, then sorry to break it to you, we all came from somewhere.

The important and more relevant fact is that we have all made this country HOME, as your forefathers did when they arrived from wherever they last settled, as Rodan's ancestors did, the President's, and, likewise, as every single one of our pioneer ancestors did when they made that bold choice to make a life HERE.

I suspect that this pathological need, on the part of some, to constantly qualify the contributions and hard-work of others on the basis of "rule-of-origin" labels (if we can call it that) such as Kaidia, Kailoma, Kaijaina, Kaitoga, Kaisolomoni etc. etc., and which have little to do with the sacrifice service they've rendered their country, is symptomatic of a deep-seated feeling of insecurity and ineptitude.

Reply
Dekho
29/5/2015 02:25:22 am

The point is there is still favouritism on the basis of race in the utopian all equal new Fiji created by Kai and Kai. Muslims and kailomas have been favoured because they supported the Bainimarama coup and regime.
No amount of denial can detract from this fact.

Vili
29/5/2015 03:28:48 am

Well said brother.

Dekho is still looking at the world through his race-coloured glasses.

Before it was the kai Idia who were the victims,

Now, according the Dekho, the kai Idia are still the victims but this time it is the Muslims and kai lomas who are benefitting!

Good Lord!!! Next it will be the i' Kiribati on Rabi and the Tuvaluans on Kioa, then it will be the kai Solomoni at Wailoku, Deuba, Ovalu etc etc.

What Is...?
29/5/2015 03:58:28 am

Conflict of Interest

Conflict of interest may be defined as a situation in which politicians and public servants have an actual or potential interest (usually financial) that may influence or appear to influence the conduct of their official duties (see PATRONAGE; CORRUPTION). Even when this conflict is not illegal, it may create doubts or suspicions concerning the integrity or fairness of decisions made by such officials, and over time recurring conflicts may increase the level of distrust and cynicism toward government.

http://www.thecanadianencyclopedia.ca/en/article/conflict-of-interest/

A “situation where an individual or the entity for which they work, whether a government, business, media outlet or civil society organisation, is confronted with choosing between the duties and demands of their position and their own private interests.”

http://blog.transparency.org/2009/07/27/what-is-a-%E2%80%98conflict-of-interest%E2%80%99/

Reply
Chor Honourable(s)
29/5/2015 05:04:20 am

The Chor Honourable(s) of new Fiji do not see or care about what constitutes 'conflict of interests'. The FijiTV-IRB saga, the lately Lalabalavu’s vatusona story are all examples of glaring ‘conflict of interests’ to do with one man, the Chor Honorable Khaiyum.

Reply
Spot-On
29/5/2015 05:15:21 am

Now who is the Minister responsible for Intellectual Property in Fiji?
Is he not, the one and the same, the most pitiable IP Chor himself?
Is it not a case of Dracula guarding the blood bank?

Dekho
29/5/2015 04:47:15 am

Vili come to your senses ans stop looking at the world through your rose coloured glasses. The real world of the new Fiji is very different from your imagined one of all equal citizens regardless of race.

Reply
FSC Board
30/5/2015 10:46:11 pm

Now we have a sprinter, soccer coach and failed ITLTB Corporation running a Sugar Industry with race appointed CEO.What a shame that hardworking cane farmers don't qualify.

Like failed USP academics who ventured into cassava farming and real estate these bunch will also fail.

You wanna succeed in farming open your ears and talk to the farmers and let them be represented and lead.

Talk to the boss of Garden City, a self made farmer and entrepreneur,he may well be placed to lead and salvage the industry.

Reply
Bahuki
1/6/2015 12:41:33 am

So instead of spending that profit on the betterment and further improvement of the sugar industry, they come up with a smoke screen of so-called "delays" to cover up what their members are really earning, like some people in government.

Bhaiyum and co seem to be taking care of their own very well at the expense of others.

Reply

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