Fiji Hardwood Corporation Ltd had $50,000 in its trust account and a debt totalling $8.7million when the current administration took over in 2021.
General manager Semi Dranibaka told The Fiji Times he was “in disbelief” when the FHCL Board of Directors appointed him to the role.
“I was surprised as well,” he said.
He explained the debt was from a loan acquired from the Fiji Development Bank, Fiji National Provident Fund, and other financial institutions dating back to 2007 and 2011, there were also arrears of lease and stumpage owed to landowning units.
Mr Dranibaka said from 2021 to 2022, a major overhaul was conducted internally in its field operation processes, as well as a company restructure through its internal auditors and the Office of the Auditor-General.
He added this had resulted in the company’s financial accounts improving and its bank balance turning around from $50,000 to $3million in profit in less than a year.
However, from that profit secured in 2022, the company had to pay off pending loan repayments and arrears.
Mr Dranibaka said a total of $1.2million in lease arrears was paid off as well.
“The $8.7million company debt and arrears were paid off in 2022, and by the end of 2023 the company was debt free.
“We were asked by the board, ‘How did you do that?
“I reminded them that it was the value of mahogany logs through company sales when you follow proper due processes and procedures and adhere to the Company’s Act 2015 and the Public Enterprises Act of 2019 through the Ministry of Public Enterprises.
“This ensures the company is transparent and practises good governance as a state-owned statutory public enterprise.”
Mr Dranibaka said the company was operating on cost-cutting and monitoring money flow to ensure accountability and transparency to facilitate the transition.
He added, as of 2023, the company began advancement lease payment, with $800,000 paid annually.
“We began paying the lease in advance for the month of January until June and then from July to December every year. In March 2023, the company paid around $875,000 to TLTB for the arrears of stumpage and lease rentals.
“Also accounted for was the tax provision for the company that was not lodged previously.”
To carry the company forward in the coming years, Mr Dranibaka said a draft copy of the Annual Business Plan and Statement of Corporate Intent 2025-2027 was submitted to the Ministry of Public Enterprise and the Ministry of Forestry to further discuss.
