THE Fiji Sugar Corporation has made a desperate plea to the Coalition Government for a $500million bail out.
Addressing Prime Minister Sitiveni Rabuka and Sugar Industry stakeholders in Lautoka yesterday, FSC Board chairman Nitya Reddy said the corporation was in need of a major financial boost to get itself out of the dire situation it was currently in.
“Our liabilities including the long-term loans that we had secured from local and overseas banking institutions has increased by $453million in the last 25 years,” he said.
“Our liabilities in 2000 were $130million and it has gone to $453million now.
“Our shareholders equities which is the best measure of what your business is worth has gone down by $473million.
“Our total assets after deprecation has gone down by $220million.
“We have taken so much of loans our shareholder value has diminished and eroded. We have nothing new to show you.”
Mr Reddy said the only way the industry could get out of its current situation was with a major financial support from government.
“We pay about $80million in interest because of our heavy borrowing which comes to about $60,000 per day.
“That is the kind of financial burden that we are operating in.
“I cannot sanitize the truth, and truth is Mr Prime Minister, you have the tactical know how to rescue our industry.
“We need a capital injection of at least $500million.
“Hail, rain, storm, beg, borrow, steal. We need that share if we want to revive the industry.
“There is no other way.”
In response, Prime Minister Sitiveni Rabuka said a paper would have to go before Cabinet through Sugar Minister Charan Jeath Singh for a decision.
“The key issues for Government will be return on investment and sustainability of the industry,” he said.
