#header-inner img {margin: 0 auto !important; #header-inner {text-align: Center ;} Fiji Coupfourpointfive: Bainimarama: 'Fiji Water engaged in transfer pricing'

Tuesday, November 30, 2010

Bainimarama: 'Fiji Water engaged in transfer pricing'

Frank Bainimarama is giving Fiji Water the cold shoulder. The company announced yesterday it would pull out of Fiji unless it came to a satisfactory arrangement with the regime over the new 15 cent tax.

In a statement of his own the illegal prime minister says the regime remains "firmly committed to both international and local investment in Fiji but it Fiji Water no longer wants to operate in Fiji, it must inform the Director of Lands and Yaqara Pastoral Company Limited from whom Fiji Water has leased lands."



Bainimarama said that "as usual Fiji Water has adopted tactics that demonstrate that Fiji Water does not care about Fiji or Fijians. They have made statements about supposed instability in Fiji and know it is not true, yet do so because they simply do not want to pay the new taxes."

The illegal leader goes on to accuse Fiji Water of getting the better end of the deal.

 
He said that "Fiji Water has had a corporate tax holiday since its inception until only two years ago; it has paid less than a million dollars in total corporate tax and only in the past two years (2008 and 2009); it receives approximately $FJ 4-5 million in VAT refund annually given it is export- driven; despite being a premium boutique water product, it declares the selling price of a carton of water at $US4 when at the same time other relatively unknown brands from Fiji like Aqua Pacific declare their selling price to the US market at $US10 a carton; Fiji Water sells its water to a US sister company and therefore is engaged in transfer pricing. These are the facts pertaining to Fiji Water."


Bainimarama said that "the positive feedback from the recent Fiji-Australia, Australia-Fiji, NZ-Fiji and Fiji-NZ business councils meetings, the positive feedback on the Budget and the new investment inflows and interest is indicative of the affirmation of and confidence in Fiji and the Fijian economy by the private sector."


He added that if Fiji Water is no longer interested in Fiji then the Fijian Government, following cancellation of the leases, "will call for international tenders from credible and reputable private sector companies to extract this valuable resource."

19 comments:

Anonymous said...

I just hope Fiji Water holds on to the leases, then we will see what the IG's next step is.
Whatever happens can't be good for investors, I've allready heard of a small business operator rethinking it's plans of staying on in fiji after the last budget.

Bauhaus. said...

Can we please get this in its right
perspective?

Its not as if its a some sort of rare dwindling recourse - its only water that some smart Americans are pumping from underground - and selling to their Kai - in return 400 people get jobs + millions of $ in infastructure. And because of some peoples ego - all this is now under grave threat?
Bit of something is better than all of nothing. Unbelievable.

Military madness said...

The junta is collapsing like a pack of cards. The Fiji military under the puppet girl cassava baini and the real leader khaiyum has totally rooted their own country and the future for their children.

Anonymous said...

It will be extremely interesting to watch this story unfold. Watch out for the winners (Aiyaz and Auntie) and the losers (the people of Fiji). Watch the legal battle ensuing over the use of Fiji Water. At the end, there will be a lot more egg on the regimes face. But would they care?

Anonymous said...

Totally agree with JVB on this one despite my opposition of the regime. They have have been granted more than 13 years of tax free status. So it is about time they pay up. Well JVB and team

Anonymous said...

Fiji Water 'big story' - somebody please tell Fiji Times - not one mention of it todays edition.

Anonymous said...

@ first Anon.

This is typical of the greedy logic that's got us where we are right now. Were talking wai here - not uranium. No shortage of this in Viti - is however shortage of cashed up American investors.
Suggest you take your views to a public meeting of the now 400 unemployed - see how you go?

mark manning said...

Cuba all over again, steal from the successful and give to the thieves who put you into power !

sara'ssista said...

international tenders from who? under the threat of deportation and arbitrary new decrees targetting them ona whim and no recourse to the courts. Are these guys real?? BTW and not able to use the name FIJI WATER what are they hoping to call it?? FIJI 'clear stuff', FIJI COUP WATER ahh to be in marketing in FIJI at the moment.

Joe said...

@ sara'ssista
Mark my word, the successful bidder will be a middle eastern country. "Pigface" has already done a deal on a recent trip there. That way, the kickback will remain off shores undetected.

Anonymous said...

@ Anon 11:19 - see Anon 1:26.

Can arrange accomodation Ra re public meeting - please advise.

PS.
Suggest bring helmet.

Anonymous said...

The Greedy Americans' want their way just as they did with oil or take you to the cleaners.

Now for the welfare of the American people they will declare war on Fiji for raising the tax, although they have enjoyed several years of tax free status.

The more you give them the more they want.

If they don't like it, the 400 jobs will find their way to any new investor.

sara'ssista said...

again my question is , whoever the new owner may be ..what will they market the product as ??? Fiji Wata, Feejee water, phiji water ?? and exactly what market are they hoping to break into , not the american one i presume.

Anonymous said...

@ Anon 5:10.

You read just like that other idiot
- perhaps even the same one? Therefore suggest you also take up invitation to front 400 unemployed
- state your case? Look there are no other 'new investors' or '400' new jobs - got that?

Anonymous said...

@ Anon 5:!0pm

"the 400 jobs will find their way to any new investor"?

Are you crazy? What investors? The Chinese? They hire their own, pay their own and do their own work - all while making Fiji incur the debt.

We need more investors, not less. Thank you Frank for fucking up another financial year. Imbeciles.

Anonymous said...

Probably most of the 400 people who lost their jobs are from the Ra province,Congratulations to the chief and people of Ra,they support this Goverment.

Anonymous said...

You guys must be kidding right? Fiji water has been robbing the country in broad daylight for so many years! Seriously?

Anonymous said...

At anon 1:26,
Why take it to the 400 layed off workers, Let the IG play on a even playing field and get rid of the PER and put it to the vote and then see who wins.

TheMax said...

You anti-Frank, anti-Fiji bloggers really amaze me with your shortsighted and narrowmindedness.

The Fiji government can easily put in place a special provision via the workers FNPF contribution to cover the expected loss of pay for the current workers of Fiji Waters. While that is being put in place and the government put the lease back for tender, they can ensure that whichever investor is allowed to operate the borehole, the government can make it a condition that the current workforce are automatically the first batch to be re-employed at the facility again. Easy, end of story. No problem.

Remember this, "At every ending, there is always a new beginning".