THE Fiji Sugar Corporation sold nine of its most valuable freehold and state land properties between 2019 and 2020 at a little over a $250 million. A price FSC chairman Nitya Reddy pointed out was significantly lower than what the 633 acres of land and properties were actually worth.
“In 2019/20, FSC sold nine of its most valuable freehold and state land properties, many of which were located within highly commercial urban precincts, totalling 633 acres (approximately 2,561,662 square metres) to private interest groups and large institutional organisations at an average price of $101 per square metre,” said Mr Reddy in a statement.
“Included in that was nearly 10 acres (40,468 square meters) of land and valuable port infrastructure, disposed of at a low value of only $50 per square metre.”
Based on these figures provided by Mr Reddy, the sale of the nine properties was worth approximately $258,727,862 ($258m) while the 10 acres of land that included a port facility was “disposed of” at an estimated $2,023,400.
“It is also important to note that during the 2019/2020 period, under the previous government and board, FSC disposed of nine properties (covering 633 acres), three of which were adjacent to the (Lautoka) Bowling Club, at significantly lower prices,” Mr Reddy said.
“There was not a single objection either by the Government or by any of the industry stakeholders.
“Of even greater seriousness is the fact that all these nine properties were sold to external parties and institutions for their private profit well outside the industry.”
He said since 2023, FSC has been divesting properties, ensuring they had a say in its use.
“In the last two years, FSC has divested only two properties (10 acres), both of which were sold to sugar industry stakeholders — the Sugar Cane Growers Fund and South Pacific Fertilizer Ltd.
“Unlike the 2019/20 sales, where the nine buyers have complete freedom to do whatever they like, we have included in both the current cases the highly restrictive covenants requiring, firstly, the buyers to pass on the benefits of their investments to the industry and, secondly, for FSC to have the right of first refusal in the event of any future sale or variation in use.”
The board chairman added the current debt swap between FSC and South Pacific Fertilizer Ltd with the Lautoka Bowling Club was 10 times more than the average price realised in the 2019 and 2020 sales.
