Sugar Select Committee

(posted 13 May 2004, 15.15)

The Fiji Labour Party is awaiting the Prime Minister's response to a number of issues referred to him on the sugar industry reforms and the cogeneration project at the Rarawai mill, before participating in the parliamentary committee on sugar reforms.

In a statement issued today, party leader, Mahendra Chaudhry, said that in a discussion he had had with Prime Minister, Laisenia Qarase last week during the Talanoa talks in Nadi, he had indicated that reforms in the industry must be handled in a transparent way.

Mr Chaudhry said that he was disturbed by the manner in which matters relevant to the cogeneration project at the Rarawai mill were handled. A government guarantee for a loan of $54 million to a private company with subscribed capital of only $2 was bulldozed through parliament in its last sitting. This company was incorporated on 22 April, with FSC Board chairman Hafiz Khan and a Suva lawyer Dalip Jamnadas, as directors.

I am reliably informed that this company was incorporated privately without proper authorisation from the FSC, said Mr Chaudhry.

"Indeed, when the Minister for Finance introduced the guarantee motion, he said that a company was to be registered with FSC and its joint venture partner SIDEC as shareholders. The minister was obviously not aware that a private company had been registered surreptitiously four days before he spoke. The shareholders in this company were not FSC and SIDEC but two employees of the law firm of Jamandas & Co., said Mr Chaudhry.

The FLP is of the firm view that reforms in the industry must be undertaken by a newly appointed Board of the FSC. The new Board must not include any of the current directors who must accept responsibility for the virtual bankruptcy of the company and should have the decency to step down when their term expires at the end of this month, said Mr Chaudhry.

It is well known that some members in the current Board are opposed to the reform proposals of the Sugar Technology Mission from India. It is, therefore, not advisable to retain them in the new Board as obstacles to the reform process.

Lastly, the Prime Minister has also been asked to consider that nominations by government to the SCGC must respect the mandate of the canegrowers as expressed in the recent Council elections. It would not be acceptable to the FLP if the Council is stacked by government nominees with intent to usurp the mandate of the growers.

"When the Prime Minister has satisfactorily responded to these issues, the FLP will be more than happy to participate in the parliamentary committee," said Mr Chaudhry.