Minister for Sugar Industry Charan Jeath Singh says he will request Cabinet for a commission of inquiry to be launched into Fiji Sugar Corporation’s (FSC) insurance claim for Severe Tropical Cyclone Winston.
During a media conference yesterday, the minister informed the media that the initial insurance claim was pegged at about $97 million.
However, the then FSC chief executive officer and executive chairman Abdul Khan had signed a settlement of $30m.
“Before the insurance company could go and assess the damages and come with a counter proposal, our former CEO and executive chairman, went and signed a settlement for $30 million,” Mr Singh said.
“Here, we have a $97 million claim and this man, without approval of the board, without approval of the Government, singlehandedly went and signed a settlement for $30m. That’s where the FSC’s rot started.”
Mr Singh said Mr Khan had no authority to do this, and they as Government could not go back and reopen the file as this matter was settled.
“Now that’s a big amount of money that we have lost, $61 million and any company for that matter, if the insurance company is not prepared to pay you, you can go all the way to the courts to challenge your claim.
“But here, they have agreed without any negotiations or claims to settle for this.
“The industry has gone to this place because of these types of negotiations and deals.”
He said he would put forward a request for inquiry during the next Cabinet meeting.
