Attorney-General Aiyaz Sayed-Khaiyum has labelled The Fiji Times “that rag newspaper” and accused the media organisation of regurgitating the Opposition’s propaganda against Fiji Airways.
He made the comment in Parliament yesterday while providing information about Waqavuka Financing Ltd, the special purpose company established to facilitate the purchase of three Airbus A330-200 aircraft.
“The nature of Waqavuka Financing Ltd is well documented but that has not stopped it from being misrepresented by politicians and others outside this Parliament, aided and abetted by that rag newspaper,” he said.
“And I have seen this every day coming out – ‘Who runs the show’, ‘The big Waqavuka question’, ‘Pie in the sky’, ‘Prof Biman: AG living in a fantasy over Bula Bubble’, all this sort of nonsense, continuous, continuous propaganda.
“Of course they are happy to regurgitate and be spoon-fed but here are the facts: “Fiji Airways purchased three new A330-200s from airbus as part of an integral restructure plan to restore Fiji Airways profitability.
“Fiji Airways obtained a loan from FNPF (Fiji National Provident Fund) to pay Airbus the required 20 per cent PDP (pre delivery payment) deposit. Fiji Airways arranged financing for the 80 per cent balance owing on deliveries to a consortium of German commercial banks using the three aircraft as security – I hope everyone is still with me now.
“Now, a condition of the consortium of the German commercial banks was that, the financing or the loans had to also be guaranteed by the European Export Credit Agency. This means that if Fiji Airways fails to make a rent payment and subsequently Waqavuka fails to make a loan repayment then the Export Credit Agency will step in and make the payments to the commercial banks.”
Mr Sayed-Khaiyum said this was common practice by commercial airlines around the world. The Fiji Times editor Fred Wesley said: “We make every effort to seek a response from the minister. Unfortunately, he chooses not to respond.”
