Post Fiji unable to recover $9.6 million as there was no legally binding agreement - AG's Report
Legal battle between Post Fiji and the international company will take some time

Post Fiji unable to recover $9.6 million as there was no legally binding agreement - AG's Report

Legal battle between Post Fiji and the international company will take some time

By Vijay Narayan
Monday 10/04/2023
Photo: Annual Reports

The Auditor-General has noted that a total of $9.6 million remains outstanding to be paid to Post Fiji Limited, which is owed by an International Mail Logistics Company based in Australia.

The Auditor-General’s report reveals that Post Fiji Limited was unable to recover the cost as there was no legally binding agreement with the international company.

It recommends that Post Fiji should explore all avenues to recover the significant debt owed; and ensure that all significant business engagement in the future is endorsed by the Board and an agreement is in place.

The Auditor-General’s report states that the company in Australia used the logo of Post Fiji Limited for its business dealings with various postal agencies around the globe.

Consequently, the International Postal Agencies recognised Post Fiji Limited as the sender of all the international mails sent by the international company.

As a result, Post Fiji Limited was invoiced by the International Postal Agencies for doing business with the international company.

In addition, under the Universal Postal Union Agreement, Post Fiji Limited has a legal obligation to pay the International Postal Agencies through an invoice amount.

To recover its costs, Post Fiji Limited invoiced the international company for the amount it paid plus a percentage mark-up.

Post Fiji management say they had advertised an expression of interest and awarded the tender to a local law firm.

They say the lawyers are handling the matter and the legal battle between Post Fiji and the international company will take some time before it is resolved.

The balance of $9.6 million remains outstanding as at 31st June 2020.

The Auditor-General stresses that to ensure that the company’s interests are always protected, any business engagements with external parties must be formalized with an agreement endorsed by the board.

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