Nawaikula claims in Parliament that FDB is becoming an investment bank for overseas investors

SODELPA MP Niko Nawaikula has claimed in parliament that the Fiji Development Bank was set up to assist farmers in the agriculture area, however, it is becoming an investment bank for overseas investors.

While contributing to the Attorney-General and Minister for Economy’s motion that Parliament approves the increased Government guarantee from $170 million to $250 million for the 12-month period from 1st March 2021 to 28th February 2022 (Guarantee Period) for the Fiji Development Bank borrowings through the issuance of short and long-term bonds, promissory notes, term deposits, other short term borrowings and any Reserve Bank of Fiji financing facility; and that a guarantee fee of 0.075% be applied on the cumulative utilised guarantee credit, Nawaikula says that people coming from overseas are using the facilities that were required for local people.

He says it was necessary for the Government to seek approval using standing order 131 (2) and not 131 (1) because it allows them to form a mature opinion on whether parliament should support a request for a guarantee.

He adds clause 131 (2) allows or makes it a necessity for the other side to seek advice first, most importantly, the advice of the accountants that will give them a fair idea of whether it is viable.

Nawaikula says there is no doubt that FDB played a pivotal role in the socio-economic development of the country but their main objective is to improve the socio-economic status of the Fijian people.

The SODELPA MP did not support the motion presented by the Attorney General.

Parliament has approved the increased Government guarantee from $170 million to $250 million for the 12 month period from 1st March 2021 to 28th February 2022 for the Fiji Development Bank borrowings through the issuance of short and long-term bonds, promissory notes, term deposits, other short term borrowings and any Reserve Bank of Fiji financing facility; and that a guarantee fee of 0.075% be applied on the cumulative utilised guarantee credit.