THE National Bank of Fiji corrupt saga comes to haunt SODELPA as Khaiyum rightly reminds Parliament of Rabuka's role in losing the bank

11/7/2017

“Under the leadership of the former SVT Prime Minister, Sitiveni Rabuka now leader of SODELPA, we lost our only National Bank. Under this PM we have regained our Fijian-owned bank HFC – that is the difference, that is the marked difference.”
Minister for Economy Aiyaz Sayed Khaiyum

A-G: Difference Between SODELPA Leader And PM

Aiyaz Sayed-Khaiyum says the Opposition expects a SODELPA Government under the same leader who was the SVT leader when the National Bank of Fiji collapsed.

The Attorney-General and Minister for Economy in Parliament said yesterday the NBF went bankrupt when the current SODELPA Leader, Sitiveni Rabuka was Prime Minister then.

“Under the leadership of the former SVT Prime Minister, Sitiveni Rabuka now leader of SODELPA we lost our only National Bank.

“Under this PM we have regained our Fijian-owned bank HFC – that is the difference, that is the marked difference,” Mr Sayed-Khaiyum said.

He said during his right of reply in the Budget debate that Parliament publicly disclosed the debts owed by the then National Bank of Fiji under the ‘Soqosoqo Ni Vakavulewa ni Taukei’ (SVT) government.

He said the Opposition heavily criticised the current national debt but did not consider the ones owed by previous governments like the Soqosoqo Duavata Ni Lewenivanua (SDL) and SVT.

The Opposition, Mr Sayed-Khaiyum, said that in their responses they had made heavy criticisms on debts.

The Shadow Minister for Economy, Aseri Radrodro, in his response had stated that Fiji’s current national debt was $5.2 billion.

Mr Sayed-Khaiyum said the truth was that the current debt level stood at around $4.7 billion.

At the end of 2006, he added they inherited a debt of $2.9 billion.

“The truth is this Government is also repaying the debt of previous Governments,” Mr Sayed-Khaiyum said.

He added that a dollar borrowed 10 or 20 years ago was not the same as a dollar today.

“The $2.9 billion in 2007 is equivalent to $4.9 billion in today’s value, we need to compare apples to apples,” Mr Sayed-Khaiyum said.

“The then SVT Government borrowed $209.1 million to bail out the National Bank of Fiji, NBF as we knew it in 1996 to 1997.

“This borrowed amount in today’s price is almost $415 million purely because of mismanagement; apart from this the interest paid in today’s value terms is a total of 200 million dollars.

“The total cost of the NBF saga cost the country a staggering $615 million in today’s terms.” Fiji Sun, 12/7/17

Fijileaks: In 2010, our Founding Editor-in-Chief VICTOR LAL had published his lengthy investigation into the collapsed National Bank of Fiji; shockingly, many of the debtors had rushed to join the post 2006 Bainimarama regime, some even becoming Interim Cabinet Ministers. Below are a few debtors

"Rabuka had appointed Visanti Makrava in December 1987, at the point of a gun. Makrava entered the NBF headquarters in Suva with a group of soldiers saying he had been appointed by the Brigadier, as Rabuka was then. At the time Makrava was manager of the NBF's Samabula branch where the army did its banking...The other link Rabuka had with the bank was through his friend and former army commander, Paul Manueli, who had become NBF chairman in January 1988. He was to stay in that position until June 1992 when he left to become Rabuka's Minister of Finance...Makrava certainly did Rabuka no favours when he was reported to have said, "If I open my mouth, half the Government goes, including the leader."

http://www.fijileaks.com/home/the-national-bank-of-fiji-fiji-suns-new-poster-boy-rabuka-and-his-praise-of-rfmf-well-rabuka-might-want-to-tell-fiji-who-ran-this-rfmf-officers-mass-635207-debt-leading-to-collapse-of-the-bank

From Fijileaks Archive, 21 February 2014

Frank Bainimarama (right) and Home Finance Company Ltd. Board Chairman, Tom Ricketts after the unveiling of the new logo for HFC Bank — at Novotel Suva Lami Bay.

Bainimarama warns voters against politicians and hangers-on responsible for the infamous National Bank of Fiji (NBF) scandal:
“Now, some of those same politicians and hangers-on who were responsible for this scandal – and others who benefited personally – are seeking your vote in the forthcoming general election. They are relying on you having short memories. They are treating you as if you are stupid. I urge you to call their bluff and consign them to the political dustbin of history. With their noses stuck firmly in the trough, this elite – aided by a grossly irresponsible management and board – raided the National Bank of Fiji for loans that many had no intention of repaying. They ripped off their fellow Fijians...The funds of ordinary Fijians were misappropriated.
These elites effectively robbed their own countrymen and women – decent, hardworking ordinary people who had put their trust in the Bank and the Government.”

WHAT ABOUT HIS VERY OWN POLITICIANS & HANGERS-ON:

During his time on the FNFP Board, the Board had bought 1,716,724 Class B shares in Yatu Lau Company Ltd. Ricketts at that time held 5,000 Class A shares in Yatu Lau. Was there a conflict of interest?
See Victor Lal: Yatu Lau Class A Shareholders and NBF loans

http://www.fijileaks.com/home/banking-on-old-greased-hands-as-bainimarama-warns-of-nbf-politicians-his-new-hfc-bank-has-old-politicians-like-tom-ricketts

5 Comments

Kini

12/7/2017 07:12:13 am

Like any politician Khaiyum reports a fraction of the story that suits himself. As shown by Professor Wadan Narsey in his study, military coups cost the country more than $8bn. That includes Khaiyum and Bainimarama's coup. Coup makers should not benefit from their treasonous act and should never be in Government. Khaiyum forgets that his Ministet for Defence, Inoke Kubuabola was a senior Cabinet Minister in the Rabuka SVT government. What is good for the goose must be also good for the gander.
If Khaiyum wants to paint the picture that Bai is a more prudent leader than Rambo what about Khai and Bsi's decision to sell Fiji Govt bonds in Asia at 9% interest when the International Monetary Fund was offering a far lower rate of 2% that Fiji taxpayers will have to pay back. I wonder if Khaiyum will want to talk about his sale of FEA assets to private investors, a model where used overseas results in higher electricity prices to consumers. Nor will he wish to speak about the high carbon emission targets his man Bainimarama announced in Paris last year that will make Fiji totally dependent on the more costly and unreliable renewable energy sources that will also further raise prices. Fiji will become the most expensive country to live in under Bai and Khai's populist money squandering schemes

Rajend Naidu

12/7/2017 10:02:33 am

Editor,
Abuse of Power
Former Brazilian president Lulla de Silva has been sentenced to 9.5 years in jail for corruption and money laundering ( France 24 News 13/7 ).
And, we learned from the news yesterday of a damning report on corruption by the Pakistani PM ( NHK World, Japan 12/7 ).
The people in both these countries would not be surprised because they have come to see corruption by their top political dogs as something of a norm in politics.
We too in Fiji witnessed that norm becoming entrenched in Fijian politics since our first military coup of 1987. Fijileaks has highlighted many instances of this abuse of power by the mob in power in Fiji.
Some of these crooked political leaders should like Lulla be locked up in jail for a long time.
Sincerely,
Rajend Naidu

Chiku

13/7/2017 05:28:43 am

How many politicians and hangers on from Rabuka's coup became part of Bainimarama's coup regime?
Khaiyum seems to have an amnesia about that!

Ratu

13/7/2017 07:55:57 am

Kini raises an interesting point on Khaiyum's sale on the private bond market in Asia of half a billion in Fiji Govt bonds at 9% interest when the International Monetary Fund had offered 2%. There is significant opportunity cost in this decision. Fiji tax payers will have to pay back these bonds at 9% interest instead of at 2%. The question is why would Khsiyum as Minister for everything including Finance, would embark on such a strateg knowing that tax payers would be ounished in the future?
Sticking to the facts we were told that ANZ had facilitated the deal. Mohammed, the newly appointed FSC Chair, was then ANZ CEO in Fiji. We know as a fact that ANZ pays its top executives bonuses for attracting business to the bank. If Mohan was also Chaur of the Publuc Service Commission at the time. After the deal he left the bank, it coincided with an enquiry in Australia by the regulator, the ACCC iinto ANZ irregular manipulation of the daily inter bank currency market. ANZ was found guilty. There was increased scrutiny on ANZ at the time for alleged insider manipulation. The question was Mohan's departure linked in any way. As public money is involved and Mohan is now paid from the public purse was any commission paid to him and if so how much? Did that money all go to him or did some find its way as pay offs to Govt officials or a donation to the FFP?
One possible reason for Khsiyum to turn down the IMF offer would be to avoid the often draconian IMF conditionslities or to keep out probing IMF eyes from Govt books meaning there are things to hide? Another possibility would be to follow what Qarase and his taukei side kicks did in leveraging funds from the Fiji Developmrnt Bank st low interest and having their Class A Fijian Holdings dividends paying higher premiums build up their borrowed equity by paying off their FDB borrowings, This is the art of using other people's money.
If u control everything it's not hard st all to get a few capitalist cronies together (or just do it yourself) to float a company in Sjngapore or Hong Kong, for example, then using borrowed funds fm the international finance market at 1-2% interest then using the 9% interest from their acquired Fiji Govy Bknds to build their equity to the total value of the bonds of $500bnx it's as easy as stealing candy from a baby. The recent case of the Malaysian PM and one or two of his party cronies allegedly milking that country!s sovereign fund through questionable deals involving Arab financiers and Hollywood stars shows the need for close scrutiny on politicians in positions of power. The beauty is there is no secret in this world. The law of kharna ensures that. Maybe this is why Khaiyum and Koya are going ballistic over a simple coffee shared in Nafi recently by Biman Prasad and a Motibhai director.

Rabuka -vs- Khaiyum: Winner is Khaiyum...!!!

13/7/2017 11:42:43 am

Aseri Radrodro stated Fiji’s current national debt was $5.2 billion.
Sayed-Khaiyum said truth was debt stood at around $4.7 billion.

End of 2006 Khaiyum inherited debt of $2.9 billion and repaying that debt. This $2.9b in 2006 is equivalent to $4.9 billion in today value.

SDL had $500m Foreign Reserve in March 2006. Today Khaiyum has 1.9 Billion in foreign reserve.

Reconciliation: SVT/SDL (1991-2007) Khaiyum (2007-2017)
15yrs 10yrs

2006 todays value

National Debt 2.9billion 4.9billion 5.2b or 4.7billion

Foreign Reserve 500million 850million 1900million

Debt Repayment Reserve Set Aside:
2007 2017
all RBF profits transfer some profits retained

ALL OF THE ABOVE HAS TO BE ACCOUNTED FOR TO GET CORRECT NET FIGURES..., isn't it?

Corruption is a separate matter that Aseri Radrodro can also do a comparison as to todays value who is most corrupt...!

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