There is no one in a dark cloak sitting in a corner that Fiji Airways is borrowing from - AG

Majority of the members of parliament have passed the motion to amend the government guarantee for Fiji Airways borrowings consisting of $455 million to be valid until the guaranteed facilities are discharged by the lender or fully settled.

The government side and SODELPA MP, Mosese Bulitavu supported the motion while the remaining SODELPA and National Federation Party MPs opposed it.

While speaking during his right of response, Minister for Economy, Aiyaz Sayed-Khaiyum stressed that the guarantee sum of $455 million which was approved by parliament last year is not being increased and the maximum loan term is expected to be 15 years.

He also says the loans are not from the government but financial institutions like FNPF, Asian Development Bank, Fiji Development Bank, German banks and lessor companies.

Sayed-Khaiyum says Fiji Airways debt from FNPF is $229 million, ADB is $134 million, FDB is $75 million, the German banks have $278 million and the lessor companies have $47 million.

He says FNPF has mortgage over the Fiji Airways’ government shares and they are not giving the airline free money.

He says there is no one in a dark cloak sitting in a corner that they are borrowing from. Sayed-Khaiyum also highlighted that Fiji Airways monthly recurring cost is now down from $38 million to $23 million. He says SODELPA MP, Bulitavu hit the nail on the head that you need to be prepared when the borders reopen.

The Minister for Economy says we are not God but we have to be able to plan for what will happen.

Sayed-Khaiyum also says NFP Leader, Professor Biman Prasad made a very flabbergasting statement on where is the 9 years of economic growth of Fiji when the COVID crisis hit.

He says even Australia made 23 years of straight growth, and they had people who had to be assisted, they had people who lost their jobs, and the Australian government had to borrow money.

Professor Biman Prasad says they do not know where the airline is and raised the questions on whether we have looked at what is the total debt, what is the market value of the whole company right now, what percentage of the total market value would be government share of 51 percent and where the company will be in the next 3 to 5 years.

Professor Prasad says he maintains that it is the responsibility of parliament to see what’s happening in the airline company as government is the majority shareholder.