The Fiji Airways charter to Israel was a commercial transaction, not a charitable donation and when a commercial debt is owed, it must be paid.
This has been highlighted by Opposition MP Jone Usamate as Fiji Airways is taking legal action to recover payments for the chartered flight.
Usamate says this is a fundamental principle of financial responsibility and a cornerstone of public trust.
He says this arrangement was entered into with clear terms and obligations, which included specific payment deadlines.
Usamate says it is a matter of public record, confirmed in a recent parliamentary committee meeting, that the agreed payments for this commercial charter have not been made.
He says consequently, the national airline has been forced to take legal action to recover the money it is owed.
The Opposition MP says reports of new promises, crowdfunding, or “rescue” plans do not change the existing financial obligation.
He stresses that a promise to raise funds is not a substitute for payment, and goodwill does not settle a multi-million-dollar debt.
Usamate says the public deserves full transparency on this matter and they need to know when Fiji Airways will see the money it is owed, and what steps are being taken to ensure this debt is settled in full.
He adds this issue is about accountability and when a contract is signed, all parties are expected to meet its terms.
Fiji Airways had earlier said that a vetting process in relation to the charterer and the various guarantors was undertaken, which included consideration of the charterer’s history of operating successful international charters and making timely payments, and the company’s management and board of directors made an informed business judgment to proceed with the charter flights.
Further questions have been sent to Fiji Airways.
