With 80 percent shares in Healthcare Fiji, the Fiji National Provident Fund has only 2 representatives on the board while Aspen Medical with their 20 percent shares, has 3 members.
This has been confirmed by FNPF CEO, Viliame Vodonaivalu following concerns raised by National Federation Party Leader, Professor Biman Prasad.
In a statement, Prasad questions the governance and control of Health Care Pte. Ltd and asks whether it is true that the 5-member Health Care Ltd Board is controlled by Aspen with 3 members while FNPF, which owns 80 percent of the company, has two members.
He says FNPF has pumped the funds into Health Care Pte Ltd in which FNPF has 80 percent stake with 20 percent owned by Aspen Medical, that was selected as partners to manage Lautoka and Ba Hospitals.
He claims Aspen also borrowed $424,000 from FNPF.
Prasad asks if the the initial agreement between FNPF and Aspen amended to accommodate out-sourcing or has a totally new agreement now rendered the original deal meaningless just because Aspen is calling the shots on the board.
While responding to questions by Legend FM News, Vodonaivalu says FNPF has only 2 representatives on the board while Aspen has 3 as this allows operational control for Aspen on Health Care.
He says however, there are protections put in place for FNPF so Aspen cannot undertake those decisions on its own, even with 3 nominees on the board.
Vodonaivalu says FNPF appoints the chairperson of Health Care and there are reserved matters on key decisions with regards to Health Care that will require FNPF Board nominees’ approval as well.
He also confirmed FNPF has allocated $10.1 million to Aspen over the last 3 years based on their 80 percent shareholding.
The CEO adds Aspen has not borrowed $424,000 from FNPF.
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