Sources say Fiji's interim regime is changing the amount being paid out to retirees to try and recover the millions of dollars FNPF lost on investments since the December 2006 coup.
After the coup, the military regime appointed its own board to supposedly free FNPF of corruption and protect retirees money. Aisake Taito was appointed CEO and Parmesh Chand, James Datta, Daniel Urai and Felix Anthony were appointed Board members.
Millions of dollars was already lost under the previous Board, which had invested money into projects like the five star $150 million Natadola Resort. Thousands of dollars of FNPF money was paid in excessive allowances for builders and contractors.
FNPF also invested money in the Momi Bay resorts development that was set to attract world famous brands like Marriot and Ritz Carlton.
But the project, which was being developed by Matapo Ltd, was aborted after the coup.
Last week the FNPF Board sent out conflicting messages about what they were going to do to recover the $80 million dollars that went into the project.
FNPF bought Grand Pacific Hotel in Suva for $8 million and said it would be given a facelift.
The work should have been completed by now but there's no sign of any work being done. Sources say the piles ordered for phase one of the project are rusting near the project site.
The hotel is instead being used as a camp for soldiers.
French national, Gerard Saliot who owns COTEBA, the original developer of the Natadola project, is sueing FNPF for terminating his contract.
Similar legal action has also been taken by APRIL – Asia Pacific Resorts International Ltd – the management consultants of the project, who were also given the boot by the new Board.
Sources say Saliot has a strong chance of winning and this may see FNPF paying millions of dollars as compensation.