THE divestment of Lautoka’s Bowling Club by Fiji Sugar Corporation (FSC)has been labelled as a debt swap worth $9million.
Responding to a news report claiming Cabinet approved the debt swap of the property, FSC board chairman Nitya Reddy clarified no such approval was given nor was the corporation at liberty to seek such a consent.
“FSC is not aware of any such decision and has received confirmation from the Minister for Multi-Ethnic and Sugar Industry, Honourable Charan Jeath Singh, that the Cabinet has not issued any such instruction in relation to this transaction,” said Mr Reddy.
“The board of FSC, vested by statute under the Companies Act with full authority to conduct the corporation’s affairs, acted within its remit in approving this debt-swap arrangement between FSC and South Pacific Fertilizers Ltd (SPF).
“Contrary to suggestions that this was a normal commercial property ‘sale’, the transaction, in fact, was structured as a debt swap.
“This strategic move relieved FSC of approximately $9million in long-standing liabilities to the South Pacific Fertilizer Ltd, effectively lifting that burden from the balance sheet and strengthening the financial position.”
He said over the past two years, FSC has divested only two properties on a total of 10 acres of land.
Mr Reddy added all transactions have been conducted on a transparent basis and in total compliance with the FSC’s tender and approval procedures.
