Fiji Labour Party Leader, Mahendra Chaudhry has questioned why the government is providing a $75 million loan guarantee to Fiji Sugar Corporation when the miller has not submitted its accounts for the past two years.
Parliament has approved the motion that the government will provide a guarantee of $75 million to FSC’s domestic borrowings from 1st August 2022 to 31st May 2028 and endorsed that FSC be exempted from paying the guarantee fee.
Chaudhry says FSC accounts for the financial years 2021 and 2022 have not been published and their financial year ends in May; so for two years now, the Corporation has not made its accounts public.
He says nor has it held its annual general meeting.
The former Prime Minister says how can Parliament or government provide a guarantee to the Corporation when it stands in breach of the company laws.
Questions have been sent to the Prime Minister and Minister for Sugar, Voreqe Bainimarama, Permanent Secretary for Sugar, Yogesh Karan and FSC CEO, Bhan Pratap Singh. They are yet to respond.
While speaking in Parliament earlier this week on the motion to provide the guarantee, Bainimarama had said FSC is expecting a turnaround for the 2023 financial year reflecting the 2022 season.
Bainimarama says FSC anticipates cane production of 2 million tonnes and sugar make of around 200,000 tonnes.
He adds that FSC expects $239 million in total revenue from sugar proceeds and molasses in the projected financial year.
Bainimarama says they also ensured farmers will get the guaranteed $85 per tonne.
Attorney General Aiyaz Sayed-Khaiyum had said FSC is experiencing financial issues, attributed mainly to various uncontrollable factors such as natural disasters, inconsistent world sugar price, milling inefficiencies, non-renewal of leases, declining cane production and deteriorating cane quality.
He says in order to support the restructure and the financial turnaround, FSC requires additional funding support through Government guarantee.
The Attorney General says for the continuity and viability of FSC, the management with the assistance of the Board has developed appropriate action plans to stabilize cane production and overall mill operations.
