#header-inner img {margin: 0 auto !important; #header-inner {text-align: Center ;} Fiji Coupfourpointfive: Regime to review lease agreements of other companies after Fiji Water u-turn

Thursday, December 2, 2010

Regime to review lease agreements of other companies after Fiji Water u-turn

More changes are heralded after the ruckus over Fiji Water, with the illegal regime now wanting to ping other overseas companies leasing land in Fiji.

Thanks to the hurried u-turn by the American company, the regime is looking to review what major companies are paying in leases.

Illegal leader Frank Bainimarama is quoted in Fiji Broadcasting Corporation today as saying many companies in Fiji are making huge profits but paying little for the privilege of doing business in the country.

Fiji Water was used as an example, with him saying the company is paying "$11,000 in lease, an increase of just $5,000 since 1995, when it used to pay $6,000."

He made it clear the regime would review lease agreements and move to improve the situation.

Payments for the leases are made with landowners from what we know, so it's clear the regime will be setting new edicts regardless of existing deals with landowners.

The looming review of leases come as the claim Fiji Water is engaging in transfer pricing continues to raise questions.

The regime says the company is selling the water at an artificially low price by on-selling it to its sister company. 

According to some, the claim is baseless because marketing costs are huge, especially for water in North America, where a very pure, safe product is available free from the taps. As one reader says "The only thing harder would be to sell ice to Eskimos."

But the regime must either already have the proof or should front up with it. Is Golden Manufacturers Limited understating the cost of the cartons? Are the plastic bottles bought from a related party at an artificially low price? How is the transfer pricing being done?

This would be a routine job for FIRCA, who could use well-established international guidelines for assessing 'real' costs. If Fiji Water didn't meet the guidelines they could take them to court and order payment of higher taxes.

It's probably what that icon of integrity, Mahendra Chaudhry, was doing before the regime's case was stalled, no doubt when it was realised that FIRCA couldn't establish the facts.

Ironically, Aiyaz Sayed Khaiyum's too clever work with the Commerce Commission to control prices of food probably means the regime has set very low benchmarks for business costs in Fiji.

Footnote: Statements about Fiji Water and the budget since Monday have all been attributed to Dictator Bainimarama but there have been no current pictures from what we've seen  accompanying his comments. A short time ago someone posted this comment on his Facebook: "Bainimarama had a stroke? Thats what the coconut wireless is saying around my neighbourhood."

11 comments:

Anonymous said...

Lets just hope this new idea on higher cost of land leases applies to all including the Chinese ivestors there so keen on bringing to the country.
But that would be wishful thinking with this IG.

Anonymous said...

golden manufacturers do not mention them.look at the tax benefits they got and how about those filling from out taps;Pleasse beverage;Tappoos,and the Nadi guy AGs favourite. They should also be taxed as they source is WATER AUTHORITY OF FIJI,opps water authority check their rentalpayments at Nasinu FISHY and rental 4WD whom and how .The wheeler and Dealaer has just ordered a $200,000 vehcile \

TheMax said...

Well it's the right thing to do. There has to be fair level playing field for everyone and exploitative tactics by foreign investors MUST be addressed accordingly as well.

mark manning said...

" Another quote from Frank Bainimarama " !

So just who is peaking for him, Aiyaz and why hasn't Frank been seen since his collapse @ Nadi airport ?

I heard that he collapsed and died at the Airport and was trucked back to suva under the cover of darkness and that he never even made it onto the plane !

This could explain aiyaz determination to pretend that Frank is still active and alive, because he needs the funds more than ever now to pay the soldiers for their allegiance as they sell their souls to the Devil.

Pacific in the Media said...

Mark@12.22 Baini hasn't passed on, but he is ill and the effots go on to hide this from the nation and the world!-C4.5 Ed

mark manning said...

@ pacific
He might as well be dead, because he is of no use and Aiyaz knows it.
God has checked mated them all in one Almighty Move !
Check Mate Aiyaz, your move, hang on, there are no more moves, except to prison !

Being Terminally ill, is as good as being dead !

So how are his family handling his new found fame now ? Still using the Net ball Team as a cover ?

Anonymous said...

Vore is very sick and will be following his elder brothers wife soon, who is being buried today in the US. Poor woman must have been so ashamed of the baini name that she wanted to be buried in the US where she had been since before the coup.

Anonymous said...

Any news on BRDG AZIZ and his medical center,it was made for Baini anyway with top of the range facilities financed by FOUR R,Manhoan,Western builders and all friends of MR HUNTS and EXTREME business.EXTREME got paid by take over of fijian holdings IT dept,being sold at a loss of 1.5 million,no tenders called aahaa.MR HUNTS got a commission of $250 to buy a new 4wd toyota this time FROM asco

Anonymous said...

COMMERCE COMMISSION,cock eyed decision as they say,blunder with FEA so to hide go for supermarkets another blunder,to hide that go for pharmacys ,to hide that go for hardware and whats coming up CHAIRMAN CC,job as CEO MINISTRY OF FINANCE/ well done DR R.

Anonymous said...

COMMERCE COMMISSION,cock eyed decision as they say,blunder with FEA so to hide go for supermarkets another blunder,to hide that go for pharmacys ,to hide that go for hardware and whats coming up CHAIRMAN CC,job as CEO MINISTRY OF FINANCE/ well done DR R.

Anonymous said...

To Anon Dec 2 5:09pm - You are so true. However, the problem is that Vore will be going too, but later. You see,in military strategy when attacking a defensive position one has to first encounter and neutralise the early warning devices, then the outer cordon, then the inner cordon THEN the individual bunkers.
So it is the same with the Vore's family - the early warning devices have already been breeched and neutralised [Driti/Ului and Coy], now, the outer cordon [his extended family] is being attacked. The next phase is the inner cordon [his immediate family].
Breeching the inner cordon and the bunker takes a lot of patience, prayers, good planning [ to mitigate the risk] and so on.
At this phase there is no turning back as by that time one has the initiative and the enemy has certainly been demoralised.
Hang in there we will neutralise the bunker