Former Prime Minister Voreqe Bainimarama Pension Case

The Office of the Solicitor General gave a directive on the pension calculation of former Prime Minister Voreqe Bainimarama.

The Principal Assistant Secretary to the Cabinet highlighted this while giving evidence in Bainimarama’s pension hearing during a special court sitting today before Suva High Court Judge Justice Daniel Goundar.

She says that when Bainimarama requested his pension with gratuity, they sought a general review from the Solicitor General’s Office.

She further explained that the advice included that the pension calculation should be based on the salary received for each respective year.

The Principal Assistant Secretary says the determination to reduce the salaries of the Prime Minister, Ministers and Assistant Ministers by 20 percent was still in effect when Bainimarama retired.

She further says that there was no directive from the Secretary General to Parliament to reinstate the pay.

During cross-examination by Devanesh Sharma, she agreed that the determination had an expiry date, from March 27th, 2020 to December 31st, 2020.

The Head of Corporate Services in the Office of the Prime Minister also testified that following the legal opinion from the Solicitor General’s Office, the calculation process began.

He confirms that the 75 percent pension cap applied from 2007 to 2017.

During cross-examination, he admitted that there was confusion regarding the calculation, as the pension should have been calculated based on the retirement salary.

Meanwhile, the Principal Accounts Officer for the Ministry of Finance says that in 2021, a budget announcement was made to continue with the 20 percent pay cut.

She explained that the former Prime Minister was receiving his salary under two different payroll systems, and confirmed that before 2012, Bainimarama was paid under the RFMF roll.

Justice Goundar questioned under which position Bainimarama was being paid, as this could affect the pension calculation.

State Counsel, Ofa Solimailangi asked if any instruction was given to reinstate the pay, the Principal Accounts Officer added that after the budget announcement, no further instruction was given.

During cross-examination, she confirmed that the suspension of pay is a temporary measure, and if there had been no budget announcement, they would have proceeded with the determination of suspension.

Bainimarama earlier told Court that his pension should have been calculated based on his full salary, not the 20 percent reduced rate implemented during the COVID-19 pandemic.

Bainimarama has sued the government for miscalculating his pension and gratuity entitlements.

He claims that his pension should have been $246,562.50 annually, but was instead reduced to $184,921.87.

He also alleges that the gratuity payment was reduced and should have been $770,507.87, but he was paid $433,296.75.

The former Prime Minister is seeking the remaining gratuity balance with a 13.5 percent annual interest.

Justice Goundar has given 21 days to the State and defence to submit their closing arguments.

The judgement will be given on notice.

Former Prime Minister, Voreqe Bainimarama told High Court Judge Justice Daniel Goundar in a special court hearing this morning that his pension should have been calculated based on his full salary, not the 20 percent reduced rate implemented during the COVID-19 pandemic.

Taking the stand in his pension and gratuity case, Bainimarama states that the temporary pay cut introduced in 2020 was not reversed and that it was unfair for his retirement benefits to be calculated based on the suspended amount.

Defence lawyer, Devanesh Sharma confirmed that the salaries of the Prime Minister, Ministers and Assistant Ministers were cut by 20 percent from 27th March 2020 to 31st December 2020.

When asked why the salary was not reinstated afterward, Bainimarama says it was not the right time due to the ongoing impact of COVID-19.

Before the reduction, Bainimarama’s salary was $328,750.

He says Parliament had endorsed the determination as the agenda was to assist people during the hard times of COVID-19.

State Counsel, Ofa Solimailangi asked whether Bainimarama had written to the Secretary General of Parliament to request a salary reinstatement, as he/she determines how salaries will be made.

He could not recall doing so.

He also mentioned that there was no motion passed to extend the determination.

The State witnesses didn’t attend today’s hearing as they were at work.

Bainimarama has sued the government for miscalculating his pension and gratuity entitlements.

He claims that his pension should have been $246,562.50 annually, but was instead reduced to $184,921.87.

He also alleges that the gratuity payment was reduced and should have been $770,507.87, but he was paid $433,296.75.

The former Prime Minister is seeking the remaining gratuity balance with a 13.5 percent annual interest.

The defence counsel has clarified that they are leaving the interest rate to the court.

The continuation of the hearing is adjourned to the 16th of August.

@fijivillage.com 📍Pension should be calculated on full salary, not on suspended rate - Bainimarama Full Story:https://www.fijivillage.com/news/Pension-should-be-calculated-on-full-salary-not-on-suspended-rate—Bainimarama-r5f4x8/ 🎥: Keisha Wilson #fiji #fyp ♬ original sound - fijivillage

Former Prime Minister, Voreqe Bainimarama's pension hearing is set for the 19th of July.

Bainimarama has sued the government for miscalculating his pension and gratuity entitlements.

High Court Judge Justice Daniel Goundar had asked Bainimarama’s lawyer, Devanesh Sharma on how urgent is this matter.

Sharma says it's urgent for his client as it is a matter regarding the balance of pension.

Justice Goundar suggested if the trial can happen during weekends, however, Ofa Solimailangi who appeared on behalf of the defendants, the Government of Fiji, and the Attorney-General’s Office said that the witness may have prior commitments.

Solimailangi says she has to discuss this with her witness.

Bainimarama alleges that the government incorrectly calculated his pension based on a reduced salary during the COVID period.

He claims that his pension should have been $246,562.50 annually but was instead reduced to $184,921.87.

He also alleges that the gratuity payment was reduced and should have been $770,507.87, but he was paid $433,296.75.

The former Prime Minister is seeking a remaining gratuity balance with a 13.5 percent annual interest.

The Government through the Attorney General’s Office has been ordered by the court to pay $2,000 to former Prime Minister Voreqe Bainimarama for failure to adhere to the court’s directions to file documents on time.

The court further ordered that the defendants are to file their affidavit verifying list of documents by 28th February 2025.

Failure to file on time will result in further costs in the sum of $4,000 being ordered against the State.

After receipt of the State’s documents, the plaintiff is ordered to then convene a pre-trial conference and file the minutes by 14th March 2025 and order 34 summons and bundle of documents by 25th March 2025.

Should the parties fail to comply with these orders, their pleadings will be struck off with costs.

This matter will now be mentioned on 8th April 2025 to check on the compliance of orders of the court.

Tevita Cagilaba who appeared on behalf of the defendants, the Government of Fiji, and the Attorney-General’s Office submitted that the State had not filed its affidavit verifying list of documents and sought 7 further days to do so.

It was heard that there were various documents that were required from different Ministries and this had delayed their filing of the documents.

The lawyers of former Prime Minister Voreqe Bainimarama appeared before the Acting Master of the High Court this morning with his Writ of Summons seeking payment of the balance of their gratuity funds, pension funds and statutory entitlements payable.

When asked whether the Attorney-General’s Office had notified Bainimarama’s lawyers that they will require further time, Cagilaba said that they had not done so but required further time to file their documents as they wanted to ensure that this matter is dealt with in a diligent manner with all relevant documents being placed before the court regarding the former Prime Minister’s entitlements.

Bainimarama’s counsel submitted to the court that this matter was last called 106 days ago, on 5th November 2024, and on that date the court had made orders for filing of affidavit verifying list of documents by the parties.

They say as part of the orders, it was stated that if either party failed to file their documents within the time specified, their pleadings would be struck out subject to a cost of $2,000.

Former Prime Minister Voreqe Bainimarama, who is serving a one year prison sentence, has taken the Fijian Government and the Attorney General to court in relation to the alleged short payment of his pension and gratuity by $337,211.

According to the Writ of Summons filed in court by Bainimarama's lawyers, they claim his annual salary was $328,750 and according to the Parliamentary Remunerations Act, his pension and gratuity is supposed to be 75 percent of his annual salary which is $246,562.50.

Bainimarama opted for a gratuity or a lump sum payment.

According to the summons, they claim his pension was reduced to $184,921.87.

The summons state that the Government made a payment of $433,286.75 to Bainimarama, allegedly leaving a shortfall of $337,211.12.

It claims Bainimarama should have received a monthly pension payment of $7,112.12.

In the response filed by the Office of the Attorney General, they deny the amounts provided as Bainimarama was only entitled to 80 percent of the salary provided in the Parliamentary Remunerations Act 2014, that is, $263,000, when he retired as the Prime Minister.

They say that the salaries of the Prime Minister, Ministers and other public officers outlined in the Parliamentary Remunerations Act were reduced by 20 percent on 27 March 2022 as per the Parliament's resolution and according to section 11 of the Act, his reduction would remain in effect until the Parliament made a new determination.

They say there was no new determination before Bainimarama's retirement, so his salary was $263,000 per annum when he retired.

They say Bainimarama and his lawyers have misconstrued the relevant provisions of the Prime Minister's Pension Act and the Parliamentary Remunerations Act.

They seek that this claim be dismissed with an order on the costs.

The matter has been adjourned to the 5th of February next year.