National Federation Party leader Professor Biman Prasad yesterday asked Attorney-General Aiyaz Sayed-Khaiyum to respond to claims that Fiji Airways requested $25 million from the Fiji Development Bank (FDB), on top of the $75 million lent under Government’s $455 million loan guarantee to the airline.
Prof Prasad raised the issue during debate on a motion by the A-G for Parliament to approve a $170 million Government guarantee to FDB.
The NFP leader said on May 25 last year, Parliament approved a three-year loan guarantee worth $455 million to Fiji Airways. Of this, $75 million was loaned from FDB from monies lent by the Reserve Bank of Fiji (RBF).
“I want the Honourable Minister of Economy and the Attorney-General in his response to the motion, clarify whether or not Fiji Airways actually applied for an additional $25 million loan on top of $75 million guaranteed by Parliament to be borrowed from FDB,” Prof Prasad said.
He also asked the A-G to respond to claims Fiji Airways wrote to the RBF “seeking approval and ways on how to borrow the additional sum outside of the guarantee” and claims that the advice from RBF was to borrow the amount under disaster rehabilitation or contingency.
“We were told Fiji Airways needed $38 million a month to serve its debt and lease commitments for its planes. “The guarantee was for three years from 30th May, 2020.
“Therefore, the sum of $456 million would have been needed until 30th May, 2021, which would be ending this week. What about the rest of the two years.”
In his right of response, Mr Sayed-Khaiyum did not speak on the claims made by Prof Prasad.
