#header-inner img {margin: 0 auto !important; #header-inner {text-align: Center ;} Fiji Coupfourpointfive: FNPF’s former property investment manager had been retained for ‘$10,000 month’ to act as consultant for Tappoocity

Saturday, September 18, 2010

FNPF’s former property investment manager had been retained for ‘$10,000 month’ to act as consultant for Tappoocity

We are yet to see the Ernst and Young Report of 2007 titled "FNFP Special Investigation - Internal Report".
Now, Coupfourpointfive has been informed the Report has not been made public by Aiyaz Sayed Khaiyum because a section of it is highly critical of the Tappoos, to whom Khaiyum, through his private company Latifa Investments Ltd, had sold his Berry Road property at a grossly obscene price. Our regular contributor, VICTOR LAL, has been examining the Report and has filed Part Five of his investigation. 

 
THE CONFIDENTIAL Ernst and Young Report expressed disquiet that FNFP’s former Property Investment manager, Carl Mar, on resigning from his position, had been retained by Tappoos and FNPF subsidiaries to act as a client representative of Penina Ltd and Grand Pacific Holdings Ltd. After all, Mar had negotiated contract terms with Tappoos on behalf on FNPF’s investment arm FIL.

A file note regarding the Tappoocity Project indicated that general agreement regarding the terms of the agreement was reached on 29 July 2003 between Kanti Tappoo and Mar, including that the value attributed to Tappoos land would be its market value sum of $3,250,000 and the lease term to be 25 + 25 with first rent set at 8& of the Project cost fixed for 15 years (Document: Memorandum titled  ‘FNPF/Tappoo Project – General Agreement Reached on Tuesday 29th July 2003 between Kanti Tappoo (Tappoo Group of Cos and Carl Mar (FNPF) undated).

Mar resigned from FNPF on 31 October 2006 to open his own consultancy company. He had been retained by Penina Ltd to act as a client representative and/0r project manager and described his position as Client Rep/Project Manager of Penina Ltd (and GPHL).

The negotiation of the terms of Mar’s contract with Penina was delegated to Vinod Tappoo (Document: Penina Ltd Board Minutes dated 20 October 2006). E & Y understood that Mar was paid $10,000 per month for his position. Mar had also allegedly been retained by Tappoos in relation to its Lautoka project with FNPF but E & Y could not confirm it in its Report.

In the circumstances, E & Y concluded that it may have been ill-considered for FNPF to delegate or rely upon Mar to act as Project Manager and negotiate contractual terms for the Tappocity Project with Tappoos. This highlighted the need to have a better spread of commercial skills to be able to consider investment opportunities of this nature.

Appointment of Neo Fiji Ltd as construction contractor

It was stated in Clause 9 of the Joint Venture Agreement that Tappoos or a Joint Venture Company shall be eligible to tender for the construction contract of the Project, notwithstanding its role as a Joint Venture partner.

On 20 August 2003, Kanti Tappoo wrote to FNPF outlining why they should be given the construction contract without it going out to tender, which acknowledged was the normal practice by which FNPF awarded contracts for construction work. In November 2003, Tappoos expressed their interest in their subsidiary company Neo Fiji Ltd undertaking the construction of Tappoocity (Document: FNPF/Tappoo Project – Meeting with Tappoo Directors’ dated 29 &30 November 2003).

In early 2005, Neo Fiji Ltd became a fully-owned subsidiary of Tappoos for the purposes of bidding for the construction contract. Neo was awarded the contract on 25 November 2005 and commenced on site in late March 2006.

There was concern in the marketplace about this appointment, given that Neo was a fully-owned subsidiary of Tappoos. Minutes of the FNPF Investment Committee dated 30 November 2005 noted that: “Committee also was informed of the concern by some contractors in the market who regarded the tender process as a mere formality due to Tappoo Holdings association with NeoCorp, who they believe were earmarked for the project before the tender process was called. Management however assured Committee that all processes with regard to the tender were transparent and that NeoCorp was given the tender on the basis that it was the lowest.”

Tappoos resist tender process to build Tappoocity

It appeared to E & Y that any attempt to keep the process transparent and free of bias was met with resistance by Tappoo, based upon an analysis of the email exchange below.

Mar sent an email to Kanti Tappoo and Vinod Tappoo titled “Tappoos City project” on 3 October 2005 in which he noted: “I just wanted to briefly update you on the project and say that the project consultants meetings are progressing very well…The meetings so far have been held in the absence of a Tappoos rep as we want to show transparency during this stage of tendering process.”

On 5 October 2005 Vinod Tappoo replied to Mar’s e-mail in which he stated: “You will appreciate that Tappoos cannot be left out in these crucial decision making process for “transparency reasons” in view of the fact that the real conflict of interest lies not with Tappoos but with FNPF because, as you well know, the rent paid by Tappoos will be based on final total cost of the project. A cost increase, therefore, means increased rental for Tappoos and direct gain to FNPF through the JV. You may want to refer to the minutes of the last Board Meeting. Under these circumstances we trust that you will jointly make all decisions on the clear appreciation of those issues.”

Mar in turn responded by email on 5 October 2005 to Vinod Tappoo, stating: “Totally agree Vinod. It is just the Tender Phase that requires me to police carefully but I truly respect the importance of the bottom line i.e. project cost and this will naturally require Tappoos input.”

 
TO BE CONTINUED

10 comments:

mark manning said...

I sincerely hope and even suggest, that someone of authority in fiji ensure that none of Frank's supporters can leave Fiji and that all their Bank Accounts are frozen and their relatives and companies assets held, including their wives and children's and other relatives and friends assets.
Secret offshore accounts also need to be frozen and the international Police advised and warrants for their arrests should they take flight from fiji to anywhere in the world.
If Frank had been arrested in New Zealand in December 2006 for Sedition or on his return from Nadi, $10,000,000,000 ( ten billion) would not have been lost to the Fijian economy and there wouldn't be the mess that there is now.
Can someone make sure the appropriate authority uses its power to freeze the assets of Frank and Co. ?

Joe said...

@Mark Manning
Thats wishful thinking m8. I agree with you fully, but who else in Fiji has authority other than 2 people. We often hear "military council". Does anybody know any member of that council? Or is it just like another "roadmap" which no one has seen. I thought Ului was the top brass in the military council, but recent events suggest otherwise. I hate to suggest this, but looks like the only option is foreign intervention in any way, shape or form.

Anonymous said...

Why are people jealous of Khaiyum and Tapoos when market forces were at work. A willing buyer and a willing seller with both benefitting.

Seller getting top dollar and buyer valuable investment property for the future.

All people of Fiji including all indegenous fijians will one day be forever grateful to Khaiyum as his policies are clearly working for the benefit of all the peoples of Fiji as the Fiji Military slowly and surely destroy themselves.

All Fiji Indians salute you Khaiyum and you will always be remembered as a man with guts and you are a real hero to us all.

TheMax said...

Nah it only takes a military man with balls to do it...no need for overseas intervention.

But the top brass in the military at the moment only wear skirts.

Anonymous said...

Fiji had vast oil reserves - would have been gone years ago.

Anonymous said...

Yeah right Anonymous September 19, 2010 5.42 AM.
The whole thing is a laugh and reeks of VENGEANCE. When Fijians were investing via Fijian Holdings, the market forces arguement was conveniently left aside and CORRUPTION, INSIDE TRADING were the key words constantly touted so that in time they become accepted as true. When other races do it in a more blatanly evil and conspiratorial way, it is termed in very complimentary words. The adage 'E sega ni URA me se tei damu' will still come true.

mark manning said...

@Anonymous September 19, 20105:42AM Your analogy is very interesting and suggestive of you being part of the Sayed scam. As for being elated that the RMF is umploding on itself, this also suggests that you are fully aware of what is happening within the RMF. Your knowledge of the damage that is being done, is quite frankly, patehtic! You and your supporters are clearly anarchists, terrorists, dictators. Men of little to no conscience and cowards of no substance. You are the sort of people that think highly of yourself as you step on others.-Comment edited-C4

Anonymous said...

Mark, your brain is a toxic wasteland. Give it a splash of purifying white bleach. Then lay down and go to sleep. Take a long rest, a long long rest. Get my drift?

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