OVERSEAS buyers of Fijian mahogany products are becoming concerned that the product is “tainted” and illegal, says director of Sustainable Forest Industries Ltd Christopher Donlon, .
Mr Donlon made the statement in an interview after Sustainable Mahogany Industries Ltd director John Wagner made statements that reflect badly on Fiji and participants in the mahogany sector.
“These need to be either confirmed or an appropriate response and action taken by the sector and Government,” Mr Donlon said.
Since Government controls the sector and has done so via a series of Acts and decree’s in place, he says the ability to rectify the situation is in their hands.
Mr Wagner earlier announced they had decided not to renew the licence for SMIL and terminate the licence for Pacific Western Timbers, a sister company and claimed Fiji Hardwood Corporation Ltd supplied just over half the mahogany to SMIL that it was required to supply under SMIL’s licence.
Mr Wagner further alleged that during this same period, FHCL over-supplied other licence holders at rates that were up to 15 per cent less than the rate FHCL charged to Pacific Western Timbers.
“The reports lodged by FHCL since its inception in 1998 disclose the challenges faced by FHCL. Earlier legal actions have disclosed some of the issues and challenges FHCL faced. These need to be addressed.”
At present, Mr Donlon says FHCL avoids any redress because a decree prevents FHCL being taken to court — this does not provide for a “fair and balanced” outcome of negotiation and dealings in a commercial manner. A company cannot access the law to support it.
He notes that FICAC is correctly positioned to investigate allegations are that:
* if logs are stolen or intentionally mis-graded. The audit process of FHCL should disclose this. The log audit process needs to be robust but not inefficient. Logs are not something you can hide easily or move easily. FICAC should be in a position to clarify corrupt practices after investigation. FHCL as well as the Department of Forests are well positioned to audit these processes;
* if mahogany lumber is exported without meeting standards and protocols settled by legislation, this needs to be resolved. The Department of Forests oversees this and the audit process is critical here as well. The protocols for export licensing exist of mahogany exist under legislation — who really enforces them? The Department of Forests does not see that mahogany is in its portfolio as FHCL has been empowered to do this and some conflict or lack of understanding of what forestry should do as regards mahogany and FHCL dealings exist from my interactions with the Department of Forests and FHCL; and
* SMIL currently regards itself as a US-owned enterprise and that the corruption it alleges in Fiji could make an illegal operation in the US.
The view of his firm and others, he said was that the practices of SMIL could and should also be investigated to ensure that agreements, standards and protocols, as well as the laws of Fiji are followed in accordance with the laws and regulations of Fiji as well as international practices and laws.
“I am seeking to engage with the decision makers and advisers to Government on these serious matters.
He says Fiji and the mahogany sector have proven to be complex dealings.
“I believe these can be overcome but it is not a simple task and it is difficult to obtain without engagement.”
Attorney-General Aiyaz Sayed-Khaiyum said they had a meeting where the issue was now being investigated by FICAC.
“As you may recall in one of the sessions, I informed Parliament that we had already notified FICAC of it and we were given various documentations regarding allegations of corruption.
“FICAC is investigating it,” Mr Sayed-Khaiyum said in an interview.