FSC consultants cost $750,000 annually
[posted 26 June 2009, 1500]
The four Australian expatriate
consultants and executives hired by FSC late last year are costing the Fiji
Sugar Corporation around $750,000 annually.
NFU is reliably informed that the four
consultants are drawing emoluments and benefits in excess of $150,000 each.
In addition, they are provided with vehicles, housing and executive travel
benefits by the FSC.
Despite this huge sum expended on these
(local) expatriates, problems at FSC appear to have compounded this season.
Almost a month into the 2009 crushing season, none of the mills are
performing to expectations. Penang, Labasa and Lautoka Mills are constantly
grinding to a halt due to mechanical problems while crushing at the Rarawai
Mill has been deferred for another week.
A report compiled by these expatriates who
are in fact former CSR/FSC employees who left the country after the 1987
coups to settle in Australia, recommended a number of changes to industry
institutions and the FSC management hierarchy.
It is believed that it was their
recommendations that resulted in the dismantling of time-tested industry
institutions viz. Sugar Commission of Fiji (SCOF) and Fiji Sugar Marketing
Ltd (FSM), much against the wishes of the growers.
They also made sweeping changes to the FSC
management structure resulting in locals in senior positions being sidelined
and subjected to humiliation because they had to take ‘executive orders’
from these expatriates.
They are also believed to be behind FSC’s
withdrawal from the insolvent South Pacific Fertilisers Ltd (SPF) – the
offloading of FSC shares in SPF thus escaping shareholder liabilities and
leaving the growers to carry the whole burden.
They are also advised that the Sugar Cane
Growers Fund loan of $16 million to SPF be converted to worthless equity,
thus seriously endangering the viability of the Fund. This has been forced
on the SCGF and the growers via a Cabinet directive.
The Growers Council objected strongly to
these measures but to no avail. |