FRU expected to challenge Commerce Commission

The Fiji Rugby Union is expected to challenge the decision made by the Commerce Commission to reimburse $10 to everyone who bought a Rugby World Cup Lottery ticket for $20.

Lawyers for the FRU are currently looking into the decision made by the Commission which has stated that the FRU's decision to change the lottery ticket prices prior to the draw was in breach of five sections of the Commerce Commission Decree 2010.

FRU CEO Keni Dakuidreketi said their lawyers are putting together a formal response and they will not comment further at this stage.

The Commerce Commission's decision that the FRU has to reimburse $10 to every person who bought the lottery ticket for the initial price of $20 within 10 days and to put on hold the disbursement of the winning prizes could have serious financial implications on the FRU's efforts to raise funds for the Flying Fijians to the Rugby World Cup in New Zealand in September.

The FRU lottery ticket sales was a means to raise some of the funds to prepare the team and Rugby House had earlier stated that they would need around $3.5 million to get the Flying Fijians ready for the World cup.

Through the payment of the Rugby World Cup lottery the FRU will have to pay out a total $268,500 in prizes.

Now the FRU has been given a deadline to provide the Commerce Commission with details on why it should not be fined up to $25,000 for allegedly breaching sections of the Commerce Commission Decree.

The FRU also has to provide the Commission with details on how many tickets were sold for $20 and details of the reimbursements within 10 days.
 
Commerce Commission Chairman Dr. Mahendra Reddy has stressed that once the commission is satisfied with the information they have requested, only then will a decision be made on when and how the lottery ticket will be redrawn.


Story by: Roneel Lal