PARLIAMENT last week passed the Mahogany Bill 2025, establishing a new unified legal framework for Fiji’s mahogany industry and replacing previous laws that governed the sector.
Assistant Minister for Home Affairs and Standing Committee on Justice, Law and Human Rights chairperson Ratu Rakuita Vakalalabure told Parliament the new law was aimed at improving the governance of the whole institutional oversight in an industry closely tied to iTaukei landowning units.
Ratu Rakuita says the law repeals and replaces the Mahogany Industry Development Act 2010, except for specific saved provisions, and repeals the Mahogany Industry (Licensing and Branding) Act 2011.
He said the new framework addressed key areas including governance, benefit sharing, dispute resolution and institutional oversight.
At the centre of the new law are four main institutions — the Fiji Hardwood Corporation Pte Limited, the Fiji Mahogany Trust, the new Mahogany Forum and the new Mahogany Tribunal.
Landowner Equitable Benefit Fund
For landowners, one of the most important parts of the law is the Landowner Equitable Benefit Fund.
Ratu Rakuita told Parliament the fund would be administered by the Fiji Mahogany Trust to ensure fair and transparent distribution of benefits to landowners.
Under the bill, the fund will consist of a percentage of proceeds from the sale of mahogany logs by Fiji Hardwood Corporation, grants, donations or contributions approved by the trust, income from investments, and any money appropriated by Government.
The exact percentage to be taken from log sales will be set by regulations made by the minister after considering recommendations from the Mahogany Forum.
Another major provision in the bill is the transfer of shares in Fiji Hardwood Corporation.
The bill states that when the Act commences, Government must execute a transfer of 20 per cent of the shares in the company to the Fiji Mahogany Trust.
This gives the trust a direct shareholding in the company responsible for mahogany operations.
The bill also clarifies that mahogany growing on land that is not mahogany plantation land may be harvested or sold by the owner of that land.
Role of Fiji Hardwood Corporation
One major change under the law is the repositioning of Fiji Hardwood Corporation Pte Limited.
The bill states that the purpose of the company is the “equitable” and “sustainable development” of the mahogany industry, including the planting, replanting, management, harvesting, processing and marketing of mahogany forests, logs and timber.
It also requires the company to actively encourage landowner participation in the development of the industry, including harvesting, processing and marketing in Fiji and overseas.
At the beginning of each calendar year, the company must consult and work with the ministry responsible for forestry and the Fiji Mahogany Trust to prepare an implementation plan.
The purpose of this plan is to ensure landowners, forest-based trusts and forest-based companies are informed, consulted and prepared to take advantage of business opportunities arising from the company’s annual business plan.
A key protection in the bill is that the company must not present a “potential business opportunity” to another party unless the trust, forest-based trusts, forest-based companies or landowners have first been given the opportunity.
If those landowner-linked bodies do not take up the opportunity, they must either advise the company in writing that they are not taking it up, or fail to respond within 60 days after receiving notice.
In simple terms, this means landowners and their related bodies are meant to be given first opportunity to participate in certain mahogany-related business opportunities before they are offered elsewhere.
New Mahogany Forum
Ratu Rakuita said the Mahogany Forum would serve as a multi-stakeholder platform to facilitate dialogue, provide policy advice and coordinate industry matters.
Under the bill, the forum will be chaired by the chairperson of the Board of Trustees of the Fiji Mahogany Trust.
Its members will include the chief executive officer of Fiji Hardwood Corporation or a representative, one iTaukei landowner representative each from the Northern, Central and Western divisions, a representative of private commercial companies in the mahogany sector, the CEO of Investment Fiji or a representative, the Conservator of Forests or a representative, and a Government representative appointed by the minister.
The forum must meet at least twice a year.
Its role is to provide a platform for dialogue and cooperation between landowners, companies, government agencies, associations and other groups involved in the industry.
It may also make representations to Government on mahogany matters, advise on issues referred to it, recommend charges on the proceeds of mahogany log sales and develop processes to hear and resolve disputes.
If a dispute cannot be resolved through the Forum, it may be referred to the Mahogany Tribunal.
Disputes to go before Tribunal first
Ratu Rakuita said the bill emphasised dispute prevention and resolution by encouraging conciliation and providing accessible mechanisms for the amicable settlement of disputes with minimal legal formality.
Where disputes cannot be resolved through agreement, he said the bill established efficient processes for their determination.
The bill establishes the Mahogany Tribunal as a quasi-judicial body to deal with unresolved disputes before parties go to court.
The Tribunal will be made up of three members.
The chairperson will be appointed by the chairperson of the Judicial Services Commission and must either be qualified to be appointed a High Court judge or have extensive legal experience in commercial law, land law and iTaukei Affairs.
The second member will be appointed by the Minister and must have extensive industry experience.
The third member will be appointed by the minister responsible for iTaukei Affairs and must have extensive experience in national commercial development and strategic planning.
The Tribunal will hear unresolved disputes referred by the Forum, determine its own process and procedure, and decide questions relating to the interpretation and application of the Act.
The bill also places restrictions on going straight to court.
A complainant in an industry dispute cannot begin court proceedings unless the matter has first been submitted to the Tribunal and the Tribunal has issued a final decision or decided it does not have jurisdiction.
However, this restriction does not apply to criminal proceedings.
Parties may also apply to the High Court for judicial review of a Tribunal decision on grounds such as procedural unfairness, illegality or irrationality.
The High Court will not rehear the merits of the dispute. It will only review whether the Tribunal process was legally proper.
