Qarase did not own shares in the 3 companies

Former Prime Minister Laisenia Qarase’s lawyer has confirmed in the Fijian Holdings High Court trial that she will present some FHL directors in the early 1990s as witnesses who will confirm that Qarase verbally declared his interest with the companies listed in the charges against him.

While cross examining FICAC witness and former CEO of FHL Sitiveni Weleilakeba today, Qarase’s counsel Tupou Draunidalo put to him that Qarase verbally declared his interest in Cicia Plantation Co-op Society Limited, Q-Ten Investments and association with Mavana Investments Limited prior to decisions made by the FHL board.

Weleilakeba said if the declaration is not in the minutes of the FHL board meetings, then it was not made.

He said the directors also had time to correct the minutes in the following meeting.

Draunidalo then questioned Weleilakeba whether he can recall or heard during the FHL board meetings that the late former FHL chairman Lyle Cupit told Qarase not to speak or vote when discussions took place on the application of the shares for Cicia Plantation Co-op, Q-Ten Investments and Mavana Investments.

Weleilakeba replied that he cannot recall Cupit saying that and it would have been recorded in the minutes.

Upon questioning, Weleilakeba also confirmed that after his company searches conducted for applicants of Class A shares at the time, Qarase did not own any shares in Cicia Plantation Co-op Society Limited, Q-Ten Investments and Mavana Investments.

Weleilakeba also confirmed that the dividend returns for Class A shareholders were very attractive after Draunidalo asked him whether the dividends have returned the initial investments many times over.

The dividends for Class A shares at the time was set at 20 percent a year while Class B shareholders received no dividends.

There were several documents shown to Weleilakeba where FHL dividend payments were made to Cicia Plantation Co-op Society, Q-Ten Investments and Mavana Investments.

At the same time according to the arrangement at the time, part of the dividends of these companies was payable to the Fiji Development Bank as the companies had purchased the FHL shares by taking loans from FDB.

Weleilakeba also confirmed that Qarase was not a shareholder of any of these three companies at the time of the application of the shares.
     
Another document dated November 3rd 1993 was then presented by Draunidalo which showed the special resolutions of the FHL AGM.

Weleilakeba confirmed that the presence of all shareholders including FAB was necessary and in that AGM, all the companies allotted FHL shares to that date including Cicia Plantation, Q-Ten Investments and Mavana Investments were ratified by the shareholders in attendance.

Copies of some FHL cheques were also presented by Draunidalo which showed only Weleilakeba signing the cheques although the signatories were him and two directors.

Weleilakeba looked at the cheques and confirmed that only his signature was on them.

He was also questioned on the 150,000 Class A FHL shares he previously owned under a company called Stiks Investments with his former wife Kelera Uluiviti.

Weleilakeba confirmed that 80 percent of the purchase of the shares was funded through a FDB loan.

Upon questioning, he also said that he analyzed the application for Stiks Investments and submitted it to the board for approval.

However, he said that he had declared his interest.

Meanwhile, Qarase is charged with six counts of abuse of office and three counts of discharge of duty with respect to property in which he has a private interest.

It is alleged that Qarase applied, and then facilitated and allowed the purchase of Class A FHL shares for certain companies when he was director of FHL, financial advisor of the Fijian Affairs Board and advisor to the Great Council of Chiefs.

The case will resume before Justice Priyantha Fernando at 9.30am tomorrow.


Story by: Vijay Narayan