FSC trio’s junket to New York, London, New Delhi

[posted 14 July 2009,1530]

FSC top brass have embarked on an extensive overseas tour which will take them to New York, London and New Delhi.

It is reported the junket is funded by cash-strapped FSC to send its chairman Gautam Ram Swarup, CEO Deo Saran and consultant Rashid Ali to plead for concessions from the buyers of our sugar and the lenders of FSC’s mill upgrade programme.

In London, they will plead with Tate & Lyle, buyers f Fiji’s sugar, to allow FSC more time to fulfil its quota because it is hampered by serious milling problems and unable to ship agreed quantities of sugar on time.

Tate & Lyle is reportedly concerned about sad state of the industry here. It is pressing FSC to come clean with whether it is able to meet its obligations under the long term supply contract.

In New Delhi, the trio will seek an extension of the moratorium on FSC’s loan repayments to the Exim Bank of India. The Bank is financing the Corporation’s mill upgrade programme at a cost of about $86 million. Repayment instalments are due from this year when the five year grace granted in 2004 expires.

But the troubled FSC, broke as it is, will not be able to meet the repayment and is seeking an extension.

At this stage, the purpose of the trio’s venture to New York is not known but no doubt it has something to do with seeking long term cheap money to keep FSC’s mills grinding. The Corporation is unable to borrow locally.

NFU questions the wisdom of forking out travel costs for three executives at a time when FSC is technically bankrupt. Could not the exercise be undertaken by just the CEO or, better still, through teleconference?

The total cost of the junket could well be around $150,000.