|TABUA INVESTMENT'S RADISSON APARTMENT ON DENARAU ISLAND: Sources say dodgy tax claims.|
|NAISOSO DEAL: Bob Lowres (right.)|
What the world knows and what is really happening in Fiji are two different things.
The international rating agency, Standards and Poor's, today revised its foreign currency long-term sovereign credit rating on Fiji to B from B minus. (see release below)
But a close look at the way the military dictatorship is doing business and therefore affecting the economy shows its methods are questionable, if not rotten to the core.
Revelations today of another business scam under the well-used pen of Fiji's pretend attorney general, Aiyaz Sayed Khaiyum, this time involving New Zealand and Australian investors.
Insiders have revealed to Coupfourpointfive that tax claims by Tabua Investments and investors for the Radisson Apartment hotel on Denarau Island were illegal and inflated.
While investors are not entitled to claim tax on land, the way the deal was set up by the Finance Ministry allowed Tabua to do just that and claim on the original piece of land (the original price was $30,000) 76 times.
Individual Apartment Unit Holders also made dodgy claims for the 55% Tax Claimable Allowance to the value of $29 million, which those in the business say is impossible because there is no way it would have cost that much to build one apartment.
The development of the Radisson Resort Fiji on Denarau Island was spearheaded by Tabua Investments and "funded by Westpac, one of Australia’s leading commercial banks and built by Fletchers, the premium construction company of New Zealand and Fiji."
Readers, you can see for yourself who invested in the exclusive 135 bedroom Radisson Resort by opening the file below, titled Hotels Projects Approval 2008.
Meanwhile, digest this: As with most of the evil in Fiji, the root of it is the head of this illegal government. Insiders say they suspect Sayed Khaiyum was already looking at his two land blocks in Naisoso (and the $426 million approved concession), when the Radisson Apartment application by Tabua Investment came along.
Sources say the scam works like this: A letter from the Ministry of Finance for such approved concession application is taken to the bank by the so-called "investor" as a form of "government guarantee" for a loan to build a hotel or apartment knowing very well that the money loaned will be repaid by government through the approved tax concession.
One source told us: "I suspect this is another reason why the election has been dragged to 2014, so that such deal and project could be effective and to gain value cumulatively. For instance, for Naisoso, $426 million in concession means $50 million plus in claim loss per year over 8 years according to the Income Tax Decree 2009 Schedule 11. If the election is held soon or next year, then the accumulative loss will not be fully claimed and another government might come in and nullify all the Decrees that have been made and Khaiyum, John Prasad, Nur Bano etc will lose their money making schemes."
In a FBC story on May the 22nd this year, under the heading "Naisoso to rake in $400m", developer Bob Lowres said he expected the development of "beachfront, private and riverfront home-sites, a 26 berth private marina, a 5 star and a 4 star hotel, apartments, residential homes and amenities" to be completed by 2017 and that most of the money will be in foreign earnings.
“We’ve set ourselves a pretty aggressive agenda - in terms of development. The only thing that will see that drag is if something happened and none of us know about – like the global financial crisis or something like that - but we are on track.” (see FBC story below)
Hotels Projects Approval 2008
Naisoso to rake in $400m