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THE LIE THAT FRU'S JOHN O'CONNOR HAS TOLD: BLK and Carpenters Motors out as FRU sponsors; Fiji Airways asks for drastic renegotiation

12/12/2016

3 Comments

 

The former Vodafone 7s coach Ben Ryan’s Tweet that the Fiji Rugby Union is losing commercial supporters is correct

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Fijileaks can confirm that Ben Ryan’s Tweet that the Fiji Rugby Union is losing commercial supporters is correct with news that Carpenters Motors have said in writing they will terminate the supply of vehicles to the national rugby body, as clothing apparel BLK winds down its commitment following their parent company in Australia going into administration.
 
In addition, Fiji Airways has started discussions with the FRU about scaling back their commitment which to the end of April 2016 was worth $420,000 a year in cash and just under $500,000 in value in kind airfares.
 
Ryan’s information about the status of the FRU sponsors is likely to be first hand. He is still a brand ambassador for Fiji Airways and has worked extensively for Tourism Fiji, including attending the World Travel Market in London, at which Fiji Airways also had a heavy presence.
 
The collapse of BLK has meant that the apparel company will not be able to complete its agreement with the FRU. In the latest annual report, the relationship was worth $128,000 in cash income and over $400,000 in sportswear for the various teams that the FRU runs.
 
Carpenters Motors contribution to the FRU is recognised as the provision of motor vehicles to the value of $283,000.
 
All three of the companies are key elements in the FRU’s commercial programme which, according to the last FRU annual report, is run by Inoke Bainimarama, nephew of the prime minister. The PM’s brother-in-law Francis Kean is the FRU’s chairman and his son-in-law Sale Sorovaki, former national 15s captain, is the head of development.
 
At the centre of the Inoke Bainimarama’s work is servicing the Vodafone sponsorship consortium which took over the title sponsorship of the Fiji 15s and 7s team in early 2014.
 
Vodafone was thrilled to announce that they were investing $40m into the Fiji Rugby Union over five years, a figure also championed by then FRU chairman (and Prime Minister’s nominee) Filimone Waqabaca. Waqabaca’s day job at the time, as permanent secretary Finance, might suggest he had a competency in finance.

But he did not because Vodafone’s cash commitment to the FRU amounted to no more than $12m over five years, but from that cash contribution VAT had to be paid on the whole of the $40m figure.

The sponsorship only reached $40m because Vodafone was allowed to pad out the numbers by including meaningless promotions and marketing exercises, spends on morning teas etc. For the first two years of the sponsorship – 2014 and 2015 – Vodafone did not even present a breakdown of their own expenditure to the FRU.

When former CEO Radrodro Tabualevu wrote a letter to the chairman and CEO of Vodafone to demand action on these points, Vodafone’s response was to pay for the Prime Minister and family members to attend the 2015 Rugby World Cup as their guests and the issue was shelved by FRU chairman Kean.

Tabualevu resigned shortly afterwards

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3 Comments
Eliki Nacagi
13/12/2016 02:43:43 pm

Something..."no government has done before!" Bainimarama's favourite term.

Reply
Joveci Baleivalu
14/12/2016 09:13:46 pm

Embarrassing indeed.

Reply
Ratu Semisi Toanivala
15/12/2016 03:54:01 am

It's a really pity that the FRU cannot see further than their pot bellies! And in that team, you need passionate rugby enthusiasts who will work their butts off to see Fiji retain its stature in the Rugby World. Good you Ben Ryan for always thinking of the boys. If Fiji could have an ounce of people like you in the FRU, we'd be on top of the world in both the 7s and 15s. Vinaka.

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