The $102 million project awarded to an Indian-based company to upgrade sugar mills during the FijiFirst government’s term was a waste of money as some machines installed were not in use.
Fiji Sugar Corporation (FSC) board director Nitya Reddy, who was also a chief accountant of the company before migrating to New Zealand, said out of this $102m debt with the Exim Bank of India, the Coalition Government had paid about $30m, reducing the loan to about $72m.
“Apart from this, we have paid close to $25m in interest only, to the Exim Bank of India and yet another $3m to $4m interest in addition as we speak,” Mr Reddy said.
“But I have visited the mills and seen that some machines are not in use because the wrong machines were installed and as a result, FSC has not been able to use it.
“Due to that failed project, the industry suffered a loss of $550 million and I went around and visited the mills and in Labasa, one boiler that the company installed has not been used because they fit in the wrong machines.”
The NZ-based chartered accountant said after returning to be part of FSC, he had seen so many downfalls that occurred the past 16 years.
“All I can say that there was massive mismanagement, so much borrowing happened and very little achieved, and I have seen this from going through the FSC books and visiting the mills around Fiji.
“The industry in that 16 years has some real serious bashing with the voices of growers not heard following the removal of the Growers Council, the Sugar Fiji Marketing and the Sugar Commission of Fiji.
“So the democracy built over 100 years where the industry recognises the partnership of growers and millers was taken out overnight, which is so wrong and led to the downfall. Growers must have a voice and as a result of removing the arms of the sugar industry, our Sugar Minister now has had 47 meetings so far just to inform farmers about our plans and the programs they can take up.”
