Acting Prime Minister, Aiyaz Sayed-Khaiyum says the Fiji Development Bank cannot just give loans willy-nilly and thinks the National Federation Party Leader Professor Biman Prasad wants FDB to go the NBF road.
Sayed-Khaiyum made this comment after Prasad claimed in Parliament that many people have informed them that they did not get any reason from the FDB on why their loans were declined under the $200 million COVID-19 Guarantee Scheme.
Sayed-Khaiyum says the FDB cannot just give loans just because there is a $200 million loan facility. He says loans have to be given to people who can pay or those who need a helping hand.
The Minister for Economy says Prasad has made irresponsible comments.
The NFP Leader has also claimed he has been told that many people who had applied for the loans from the FDB in the first instance, had arrears with the bank even before the pandemic.
He has called on the government to have an immediate audit as to what transpired.
SODELPA MP Ro Filipe Tuisawau has questioned whether the Fiji Development Bank has lost out following the sale of the Pullman Nadi Bay Resort and Spa Fiji as a report states the initial investment was $80 million and there were a lot of complications in the construction which led to a lot of overrun.
While speaking in parliament Ro Filipe said the primary financiers of the resort project were the FDB and HFC Bank and the FDB advertised the mortgage and sale.
Ro Filipe has also questioned whether an assessment was properly done on the net cash flow, net operating income, revenue per available room and risk analysis.
He says the report states that it was a bold venture from the developers, Travel World Resorts Limited, a subsidiary of Gokal Group of Companies in support of government’s drive for tourism.
Ro Filipe says the report highlights contributing factors to the current situation which includes the location and cost overruns.
When questioned by Legend FM News on how much was owed by the investor and the amount recovered, FDB CEO, Saud Minam says the bank is still in the process of recovering outstanding debts after the sale of Pullman Nadi Bay Resort and Spa Fiji and will not be able to conclude on the remaining debt as yet.
Minam says FDB is optimistic that it will be able to recover the maximum debt through the recovery process currently underway and minimize any direct loss.
While responding to Ro Filipe in Parliament, Acting Prime Minister, Aiyaz Sayed-Khaiyum stated that FDB has sold Pullman Nadi Bay Resort and Spa Fiji.
He says they were concerned the FDB may get a firehouse sale due to COVID-19 but it has been able to get almost what they wanted.
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