#header-inner img {margin: 0 auto !important; #header-inner {text-align: Center ;} Fiji Coupfourpointfive: Narsey: FNPF bakes pie-in-the-sky

Thursday, October 27, 2011

Narsey: FNPF bakes pie-in-the-sky

By Dr Wadan Narsey

Two recent media releases indicate that the FNPF Board and Management (at the instigation of the Military Regime) are digging the hole deeper for FNPF, with no accountability to the owners of FNPF, and media censorship stopping all public discussions.

The first is the bad restructuring of the $303 million loan by FNPF to Natadola Bay Resort Limited (NBRL); and the second is the massively risky $200 million loan to help Air Pacific buy 3 Airbuses in 2013, completely contradicting the most recent advice by recent consultants (Promontory) on sound investment policy for FNPF.

Why interest free indefinite loan to NRBL?
The 2011 FNPF Report states that the $303 million loan to NBRL is being restructured so that while $100 million will draw an interest of 8% pa, the remaining $203 million will become an indefinite loan, and interest free.

FNPF will effectively in its accounts, give a $16 million subsidy annually to NBRL- some 40% of the total value of all the pensions currently being paid annually.

This is terrible accounting practice for three reasons.

First, any decent accountant or economist would advise that all transactions between a parent company and a subsidiary should be done at “arms length” with subsidiaries being charged the same interest rate that other borrowers are being charged.

To convert $203 millions into an interest free loan will artificially increase the apparent profitability of the subsidiary (NBRL), while reducing the apparent performance of the rest of FNPF.

Second, by not charging interest on the large loan, NBRL is being given no incentive to repay the loan as soon as possible- especially when it is “indefinite”.

Third, if in future, this Military Regime’s forced takeover of private assets at Natadola and vested in NBRL by Military Decree is legally and successfully challenged, then the assets of NBRL will become logical targets for litigants.

The books for NBRL should therefore show its true worth- not artificially inflated through interest rate subsidies given by FNPF, which may then be claimed in future by legitimate litigants.

Which financial institution in the world, gives an interest-free indefinite loan like this? Who dreamt up this scheme?  Who in FNPF management agreed to go along with this? Why would the unelected, illegal FNPF Board Members agree to this subterfuge to show the NBRL in a better light. Is it to allow more “write-backs” on asset value of this bad investment?

Pie-in-the-sky loan to Air Pacific
Another far more dismaying media announcement has been the $200 million loan by FNPF to Air Pacific. 

If the current management at Air Pacific know what they are doing this loan may turn out OK for FNPF.

But for FNPF owners who are already facing a massive cut to their pensions, there are many dismaying aspects to this incredibly risky loan.

First, the FNPF Management and Board have no capability to assess whether this proposed investment of more than a billion dollars by Air Pacific will be a sound investment, in an incredibly complex and competitive aviation market, in which Air Pacific is just a minor player, already floundering.

If Air Pacific’s future is so good, why has Qantas been wanting to sell its more than 40% shares in Air Pacific? David Pflieger is surely talking with tongue in cheek when he says he had to work hard to convince FNPF of the soundness of the loan. He is surely talking with tongue in cheek that he had to give a premium interest to FNPF in order to secure the loan.  Really?

Why then were the Fiji commercial banks, which are also flush with money, not convinced by the premium interest? Because, like any sensible business-person, they know that the presumably higher interest rate paid for a few years, is not good enough if the borrower goes bust and a large part of the principal is not repaid.

Second, no commercial banks have as yet agreed to lend the money and the FNPF loan is instead being used as a “deposit” or “collateral” in order to facilitate loans from European credit agencies.  This is terrible business practice for FNPF.

It should be the other way round: If they were to give a loan at all, FNPF should wait until the private commercial lending agencies, who are financially far more astute in lending to airlines than FNPF management and Board, have put in their $800 million, on which FNPF could  then piggy-back with $200 millions.

For FNPF to fork out the initial $200 millions as deposit or collateral, would suggest that the European credit companies were not prepared to trust Air Pacific’s own financial projections on the viability of their billion dollar purchase.

Would the European credit companies trust FNPF’s judgment of the viability of the proposed Air Pacific purchase, enough to give a billion dollar loan? Of course not.

So why may European credit companies be more inclined to give the $800 million loan if FNPF throws in $200 million which is only 20 percent of the total purchase price of the three planes?  There are at least three reasons.

First, in the global aircraft manufacturing market, the biggest rivalry is between Airbus (backed solidly by Europe), and Boeing (backed solidly by United States). Of course, European credit companies (with prodding from their governments) will try to facilitate any loan to purchase the three Airbuses.

Second, they would know that once FNPF is hooked into the loan, our “cash cow” (which annually receives  16% of the total wages and salary bill of the country), can be called on for more funds to be thrown down the well should Air Pacific not be able to repay the loan.

Third, they also may have an understanding that the illegal Military Regime will pledge Fiji taxpayers’ money to under-write Air Pacific’s borrowings.

Why else would the illegal Attorney General (Khaiyum) be making statements on Air Pacific’s behalf?

Notice that no statements are being made by the Chairman of the Air Pacific Board (Mr Nalin Patel) who is smart enough to stay out of sight while Khaiyum prances around in the limelight. Or is it that Nalin may have been backing Boeing?

It is not reassuring to FNPF Members to hear the voluminous spin that is coming out of the leading players in this deal.

The CEO of Air Pacific declares that this purchase would be a “milestone” for the Fiji public (let us not think about “millstone”). He also declares that the Airbus would be especially “designed” to showcase Fiji.  Oh, really?

I hope he is only talking about the colours on the inside and outside the planes, and a few fittings. The only possible real Fijian influence on the structural design of the Airbus, would be to convert the Airbus into a sluggish takia sailing against the wind or a water-logged bilibili., which would well reflect the current state of Air Pacific’s finances.

The Airbus Vice President is reported to be advising us: the Airbus is the “best plane” for Fijian passengers to fly in.  What else could this glorified saleswoman say, just having sold three incredibly expensive planes to a financially troubled airline whose management has absolutely no accountability to its real owners?   We simple natives can forget all the other comfortable planes that we have been flying in for decades.

Khaiyum proudly declares that FNPF putting a $200 million down-payment on a very risky billion dollar purchase by an airline that has gone into a loss-making situation is just like Singapore’s pension fund which invested in Singapore infrastructure, proving that “Fijians can think outside the box”.  Yeah!  Just before the Fijians fall into that coffin box.

Aiyaz Khaiyum’s astonishing slick vacuous spin goes on day after day, on subject after subject, while he and Bainimarama play Russian Roulette with FNPF and Fiji people’s lives.

FNPF not learning from mistakes
Despite all the spin coming from Aisake Taito and his management colleagues, they are not learning from their past mistakes. They are not thinking about what FNPF can  do if the borrowers are not able to repay the loans.

Fiji’s commercial banks, will quite sensibly not lend a penny to the loss-making Fiji Sugar Corporation Limited, or to  the loss-making Air Pacific, for a very good reason: should these shaky borrowers fail to repay the loans, the lender would be stuck with collateral which they cannot re-convert back into cash.

Nor would the banks want to take over these enterprises and run them back into profitability, as that is not their business, even if they had the skills.

FNPF has already made huge mistakes with loans to FSC, which it cannot conceivably take over even if the loans are never repaid.

It has also made huge mistakes at the Natadola project which was taken over after the 2006 coup, and large amounts of good money was thrown after bad money by Regime/FNPF appointees such as Felix Anthony and Daniel Urai (now suddenly heroes for the democracy movement).

FNPF Board and Management now plan to repeat their mistakes with a huge loan to Air Pacific.

If Air Pacific fails to become as profitable as they need to be to repay the billion dollar loan they envisage, FNPF will be in no position to take over the Airline business.

You can also be sure that the European credit companies will ensure first rights over the collateral should Air Pacific go bust.

Pflieger and his mates will walk away from the mess having made their money, just as many other Military Regime appointees have done from a whole range of public enterprises in Fiji, since this unaccountable Bainimarama Regime seized power.

Nobody will be held accountable.

Continuing FNPF Board and Management Unaccountability
FNPF recently paid huge consultancy fees to Promontory to advise on how to run the FNPF.  Promontory said what I have been saying for a long time:  FNPF investments and loans must be managed solely in the interests of the contributors and pensioners of FNPF.

FNPF is not there to try and solve the development problems of Fiji (as Khaiyum thinks) nor to be a cash cow for the government of the day (Military Regime currently).

FNPF has no business going into risky investments like loans to financially troubled enterprises like FSC or Air Pacific, especially when the collateral will  not cover the loan if there is default.

The fact that the FNPF Board and Management continue to make these risky loans clearly proves that all their rhetoric about FNPF reform etc is just hot air, spin, lies.

The FNPF management continue, on a daily basis, to make outrageous policy statements which only the Chairman of the FNPF Board should make (even if he is illegally appointed).

The “employees” of the FNPF, have become the bosses, defiantly telling the owners how they, the employees, are going to restructure the fund, allegedly in the owners’ interests, regardless of what the owners say or think.

The FNPF Board and Management completely thumb their nose at the Fiji judiciary which is supposed to be hearing the Burness case in February 2012, by making statements that are surely sub-judice.

And why is the judiciary hearing to be in February 2012?  Of course, that will give another four months to Khaiyum and the FNPF Board to get their FNPF Military decree signed by the illegal President, thereby preventing the judiciary from hearing the case.

Will any of these FNPF Board members’ personal assets be at risk if  FNPF makes losses on the  Air Pacific loan?  Of course not.

No FNPF Board Member or Military Regime member has taken personal responsibility for the mess at Natadola.

They will also walk away from the current mess, just as Bainimarama, his Military Council, and Khaiyum, who are really behind all these FNPF Board and Management decisions, will walk away from the mess they are creating in Fiji.

As always, the FNPF contributors and pensioners, and taxpayers, will be left to pick up the pieces.  Whatever is left.


Anonymous said...

Well said Dr Narsey. As I earlier wrote, this is a scam to make someone rich and we all know who that will be.

Anonymous said...

Wadan Narsey's take on this is extremely accurate, though sometimes we have laughed at his sarcastic remarks about the bilibili and the comment about thinking outside the box...and straight into the coffin box.

However, one thing is for sure Mr Narsey, no ONE is going to go scott free from the mess they have created - they will pay...one day.

Anonymous said...

Very good comments by Dr Narsey.

Clearly FNPF has drawn the short end of the stick.

What security did it obtained from Air Pacific? Whatever it is, is probably not worth it given that the FNPF portion is only 20% of the total loan being sought for the plane purchase. This also suggests that the purchase is being funded 100% by debt. In the event of default by Air Pacific, the major lender from Europe will get priority rights over the FNPF, which could stand to lose all the funds it has lent to Air Pacific.

Jieke said...

This guy should be leading Fiji instead of this stupid morons parading around like peacocks.

Kai Ra said...

Wadan, spot on my friend! Aside from taking over an elected government, this is the most dangerous move the IG has made, seriously jeopardizing the future of the engine of Fiji - the worker!

This is it folks! Is anyone up for a class action against the FNPF? C4.5, could you solicit any support?

I may sound like I'm clutching at straws. Maybe I am. I see no other respite out of this hell hole.

Stan said...

no one taking responsibility for the mess is quite common in Fiji...remember the NBF saga...hopefully this does not end up like that. However, given that in the past Air Pac has churned out profits means it can still do so in the future. Also these aircraft are expected to consume around 45% less fuel which should provide a boost to profits given that the Essential Industries decree may curb wage costs for some time. Also fuel prices are currently falling and should fall further due to re-supply from Libya. Hence, it would be safe to assume that Air Pac can resume profitability in the future. Lets hope for the best...after all with 51% gov ownership and loans by FNPF air Pac will become everyone's airline...if u don't support Air Pac you will end up digging your own grave.

Taukei. said...

Voodoo economics at there finest - nobody - repeat nobody gives interest free loans of this size - less of course your mad & don't know what your doing - & its not your money?

jonno emosi said...

@7:25 PM. Air PATHETIC is insolvent.

Air Pacific has suffered massive losses three years in a row - its not making its margins - its struggling with the cost of maintaining its operational costs at manageable levels - and now its being loaded with a $FJD1.8 billion debt to top it all off.

how are they going to get back into a profit position by loading up on debt and increasing their loading at a time when they face stiff competition ?

they seem to think that just by increasing the volumes they move, that it will somehow even out the costs they are incurring and therefore get them back into the black - but the method they are using is just a big question mark - increasing the load on volumes hasn't worked for them with the full loads they have been having since 2007 - so how is it going to work with these added new planes and added on interest on loans ?

they say they will "save fuel costs" - but thats going to be taken out by the interest rates they have to repay on the loans - and then some. then they will have to run more flights just to make up the margins, but thats not going to save fuel costs because it means that they have to take on more fuel.

and the price of fuel is a variable they don't control.

this is just insane

all they have achieved is put Air Pacific into massive losses and now deep into debt - and worse, they have destabalised other sectors of the economy in the process.

its messed up.

you can see the policy mess with whats now happening over here with the AirPacific mess - Aiyaz is reduced to micro managing everthing. last time the KFC guys got into a mess he intervened and set up a meeting - this time the Air Pacific guys are in a jam because of the Govts decision in 2007 to allow the budget carriers in, and which has created a jam for local exporters and Aiyaz has to step in again to organise a "meeting"

this is all mesed up governance and bad governance - these issues should have been canvassed and addressed BEFORE that policy was implemented in 2007 opening up the budget carriers for Fiji and taking Air Pacific into that mess which is now placing strain on other sectors of the Fiji export industry

FDN said...

The real truth as to the extent of the borrowings of Air Pacific did not take long to emerge. FBCL reported yesterday that Air Pacific has obtained a loan from the FNPF of $200-million as part of a deal to purchase three wide-body airliners. But the broadcaster, which is managed by Aiyaz’s brother, Riyaz Sayed-Khaiyum, did not say whether the $200-million was denominated in Fiji dollars (F$) or United States dollars (US$). In fact, the amount was US$200-million, which is equal to F$355-million! How tricky is that? This means that the almost-bankrupt Air Pathetic is raising F$1.06-billion to purchase aircraft that will not be available until 2013. That’s two years away, and anything could happen before then. Could it be that Aiyaz Sayed-Khaiyum and Air Pathetic CEO David Pflieger know that the writing is on the wall? Have they cooked up this huge fund-raising in order to skim as much as they can off the top before the regime crumbles and they make good their escape to foreign climes?

Kuruvoli said...

As usual Dr Narsey's clear and informative analysis clarifies the intricacies of a topical issue we face in Fiji..thanks Dr Narsey.

Huge question hanging over our heads is what can the Fiji public do about this illegal supressive government??

Current Middle East Spring uprising is an option the victims of relentless decades of dictatorships have found quite effective. That is in decapitating the causes of their problems. Revolt and forceful removal of the offending dictators.

Hopefully, progress will be made towards real democracy in these long suffering Arab countries.

Will we take the cue from these Arab communities???? Its our choice.

Anonymous said...

Totally off-topic post: thanks C4.5 for the layout you use - with short paragraphs and plenty of surrounding space. Easy reading - even when the topics are tough.

Anonymous said...

@ Kai Ra, are you guys so dumb that you're still blinded to the dark, grim reality in which you live?

Tell us how did the last class action against FNPF go, with a judiciary that is NOT independent of the military junta?

It's sad when we read comments likes yours. Is that all fire you guys have under your belly?

Stan said...

The amount from FNPF is FJ $200m...i don't think FNPF has $400m spare to lend to anyone

I rarely agree with Narsey said...

unfortunately he is 100% correct on this one.

Anonymous said...

FNPF should cancel its loan to Air Pacific NOW!
Is their a lawyer that can help us in a class-action to fight this?
Can we get the Courts to write an Injuction or something to stop FNPF from proceeding with this loan.

Anonymous said...

@Stan, if you think AP is profitable why don't you go and help Pflieger. He hasn't made a profit ever since he took over. Now even more debt.

Smell the Coffee said...

Kaiyoom: Faking it & hoping to make it? Waraka namaka!

Anonymous said...

This is nothing like NBF.

NBF was a commercial trading bank so it had a licsense to creat credit.

No depositors lost money with NBF.
Money was simply created and cancelled out. Nobody lost a dime.

unlike FNPF money. FNPF money is not created but cold hard cash deducted from employers and employees for the benefit of workers retirment.

The big question for Dr. Narsey and the people of Fiji is whether we can afford a national airline.

I think the moment we allowed low cost carriers AP was doomed.
I had the fleeting joy of imagining getting a cheap flight somewhere, but felt a larger responsibilityto my country and its survival over a cheap flight.
The ramifications for our nation were to great, of which we are now facing. Bankruptcy of AP.
This result was expected the moment we allowd deregulation.
So lets complete the transaction and close down airpac, or reverse our policy on deregulation .

Anonymous said...

FNPF new meaning..Fuckedup Now Pay Later

Anonymous said...

Thank you Dr Narsey for keeping up the active opposition role against this illegal and illiterate bunch of individuals. Your role is critical and we thank God for you at a time like this in our life as a nation! As painful as things, we take heart that at the intellectual and academic level your Toorak upbringing always comes through. Vinaka vakalevu.

Anonymous said...

These dozen thugs junta which is corrupt must be arrested by citizen arrest by the workers of fiji.

Why should pensionsers get 64% less pension when such corrupt deals done.

This junta-FNPF Board-Airpacific CEO and chariman must be charged for abuse of office and corruption.

Time for peoples revolution and same destiny of the dictator like Libya Gadaffi.

Anonymous said...

Libya calls general election within 8 months just hrs after Gaddafi dies. Why can't Fiji hold general election this quick?

Anonymous said...

WHY should FNPF members pay for Air Pacific portion of the deposit in the first place?

If they cannot make up for the required deposit from their own reserve funds and retained profits towards future capital investment, then the company does not qualify for the loan.

Notwithstanding FNPF members have never enjoyed air fare subsidies that the inbound tourist have enjoyed all these years. So there is not a single reason that justified FNPF to carry any risk for Air Pacific.

All this F'up is happening only because of one thing. You see when Gadaffi was killed point blank the world cheered for the brutal killing of the dictator who was wanted dead or alive.

BUT when brutal killing of the rebels occurred in November 2000 for them staging war on the nation, politicians call that murder after capture.

Although some innocent got killed as friendly fire (FIT student), many innocent soldiers died on both sides of Gadaffi camp for example.

But in Fiji's case, war was staged on the nation as military is part of the democratic Fiji.

While Wadan Narsey is absolutely correct on his economical analysis, the cost of this appears to be the issue I have raised here that is the main reason why now billions are going down the drain to bankrupt every citizen of Fiji and will go down very fast.

We will write another handover of Fiji to EU or to China when the debt is defaulted.

WE have chosen to go 130 years back after the military in 2000 took a stand to move us forward pass the mind set of coups of 1987 and 2000.

BUT instead of praising military for that...we wanted to investigate CRW deaths after the reteliation for making run down cassava patch attempt as murder.

Notwithstanding SDL rewarded Frank already for the murders by giving him Admiral badge.

Now when having the Australian Police Chief to investigate death during war against the government forces.....this is the state we wanted to see Fiji in...

Isn't It?

Sa Sucu Sa Lutu.......

Anonymous said...

The world know's there's desperate dictator running around looking for investment lolzz!

The Oracle said...

Thanks Wadan Narsey.
Here's one more for the files....(from Pacific Beat). Obviously, the regime's Look North policy includes adopting the Communist approach to news reporting - distort the facts to paint a rosy picture. Sharon Smith appears to have learned something new from her recent stint in China. I wonder what else she's picked up?

Fiji falsifies World Bank survey result

Last Updated: Thu, 27 Oct 2011 15:44:00 +1000

Fiji's ministry of information has been caught out falsifying the results of a World Bank survey that ranks countries on their level of friendliness to businesses.
Rather than being ranked amongst the best, as the military regime claims, Fiji actually slipped back five places this year to 77, Australia Network's Pacific correspondent, Sean Dorney, revealed.
Mr Dorney discovered Fiji's Ministry of Information website boasting of its country's ranking as "amongst the world's most entrepreneurial countries".
But the World Bank website ranks Tonga as the highest of the Pacific countries at 58, followed by Samoa, then Solomon Islands and Vanuatu.
"It's obviously putting the best possible spin on," Mr Dorney said of the Ministry's statement.
"But what is disturbing is that something like this just gets reported on in the Fiji media, which is very heavily censored, of course, and the word of the Fiji Ministry of Information is taken as the truth. Whereas, in fact, it's not."
To view this story, visit:

Living a giant legal fiction.. said...

Dr. Narsey - primary reason commercial banks will not extend this gang finance is that they have been advised that any legal contracts entered into with this illegal entity are (will be) absolutely worthless in any future democratic Fiji.
Now suggest you & a lot of other learned people who share this visual impairment all collectively go into a big smelly room - see if you see any Elephants?

Anonymous said...

Wake Up Fiji, your pension funds are being robbed in front of your eyes and you will be left with nothing for your retirement/old age! Wholesale robbery of this kind by an illegal junta will make the NBF saga and Agriculture scam look like peanuts! Stop paying Tax, Stop FNPF contributions, if everyone did this at one time, what can they do? Don't be scared of legal action from an illegal regime.

mark manning said...

It's just not rocket science folks and you don't need a Professor to tell you the bleeding obvious do you ?
Frank and Co. are a band of thieves and have only ever had their own personal interests at heart.
Of course, then you have the many hangers on , clasping very tightly onto Frank and Aiyaz Sulu and Sari as they continue to rape and pillage Fijians livelihoods and their children's futures.
Not to mention the useless, ineffective RFMF and its band of Toy Soldiers, who continue to justify their lot by proclaiming, " it's our bread and butter " !

What will they tell their Children and Grandchildren when they turn around and ask, Dad, what was your role in the coup of 2006 ?
With head held high and oblivious to the harm done by himself and those of his ilke to his own Community, he responds :-
"oh Son, I helped the retard Commander and Taliban Lawyer, plunder and pillage Fiji's Economy so you can work until your 90 years old, with little to nothing to show for your years of labour ".

God help Fiji !

Anonymous said...


Dr Narsey is right in every respect.
The decision by flygo and the board of Air (soon to be pathetic) Pacific, ignores all the signs that the rest of us are running our lives by. Can they cancel the contracts-probably but with big penalties.
Any one individual - any business entity, should be watching the statistics and world financial situation, to help in the financial decision making process.
While the rest of us consider big debt a dangerous position to be in, and are reducing or taking steps to eliminate it, Air Pacific are sticking their necks out to take a huge risk - BUT NOT with their own money ! !who loses if AP go down ... FNPF.the Fiji people AGAIN ! .
Where are the quantas board? are they too tied up with the industrial strife in Australia to take any notice of what is happening in Fiji?
What can you expect from AP management when they think that making decrees in co-operation with the illegal dicktators is a sensible thing to do, so one stupidity after another is to be expected ... exactly the same kind of idiocy coming from the minds of banana and aiyarse.
Perhaps they read/watch the heavily sensored media of Fiji and don't get any of the news that the rest of the world sees and therefore, lives by.
We see the big picture ... Tunisia are having elections ... Gadarfy is dead ... Greece are as good as bankrupt, and the rest of Europe will be severely affected to bail them out .. Italy and Spain may be next ... not to mention Iceland, Ireland and Portugal.
Zimbabwe currency-a hundred trillion dollars won't buy a loaf of bread.
... the list goes on ... will Fiji
WAKE-UP? ? we dispair of it happening, siiiggghhh !
-Sydney Tourist

Anonymous said...





Anonymous said...

Since Air Pacific is tehnically insolvent all directors and chairman of Air Pacific have committed crimnal offence in the loan of 1 billion.

They know Air Pacific cant repay the loan to FNPF forget the 800million eruo dollars.

This is reckless and fraud action.

All directors of Air Treason must stand crimanal trial.

Anonymous said...

That also includes all the illegal deals FNPF are doing with investors who were unwise enough to borrow from FNPF and lose it due to the coup.

Anonymous said...

Anyone would think that David Pfliger and Aiyaz Kaiyum are the only brain trust "firing" Fiji. Sorry, not so - all they are doing is running a great Public Relations campaign (Shane Hussein) to bolster their reputation and put Air Pacific and FNPF into a bigger financial hole. Bainimarama should boot them out before they destroy the country.

Anonymous said...

Anon 102PM

You are sick and racist.If you think Dr Narsey will run to India,I do not think he would waste his time writing in this forum.

I guess some of you racist are so blind you will never see any good in any Indo-fijian.However you will have no problem kissing a feet of any white trash.

Stan said...

@ Anon 10.45

Nobody lost money in the NBF saga....yeah rite!

Everyone lost their money...government bailed out the bank that's why none of the depositors did not lose their money...and how did they bail them out ...through FNPF. Government sold its shares in ATH to the FNPF at twice the market valuation and used that money to bail out NBF.

Anonymous said...

Anonymous @ 9:24 PM

No, I'm not dumb. I am quite aware of what we are in, thanks, and do not need your profound wisdom to elaborate. Vinaka

Actually, I can't just take to the street and risk getting gunned down for breaking PER. You see, I do not have the fortune of having inherited vast tracts of land that my family can till in case I go. I am still a blue-collar worker, struggling to feed my young family.

If you are such a braveheart, why don't you forget about enlightening the likes of us, and take up arms and fight for the cause?

Walk the talk, mate, else you're only as brave as a wart in a hairy dog's bottom. One splurt and you're shit!

Anonymous said...

From an economics perspective, taking such a large amount as $200 million out of the Fiji financial system is like sucking air out of the country.

One immediate outcome is the reduction in liquidity in the banking system, and by extension a reduction in Fiji's foreign reserves as well.

The impact of both outcomes above is not good for Fiji.

The reduction in liquidity would lead to an increase in interest rates, and fuel inflation.

The reduction in our foreign reserves would lead to a weaker Fiji dollar, and also fuel inflation due to higher prices for imports.

What it does is make the already dire situation in Fiji even worse.

This brings into question whether numbskulls like Aiarse know what they are doing.

As an economics professor I would have thought that Wadan Narsey would give us an analysis along this line rather than a general commentary more akin to a journalist.

Anonymous said...

hahahaa @ 8.19p.m. Now that's more like it, let it all out!

No, I would never call for violent responses from the public although that's what usually gets dictators to move out in the end.

I guess, nothing ventured, nothing gained.

Anonymous said...


Trading banks do not "loan" deposits, as they are a liability and on call.
NBF was divided into a good bank and and bad bank.
Good bank continued trading and 50% was sold to CBA, later sold to BSP

Bad bank has collected over 100 million dollars and is still fading away .

There was never a bail out from government or FNPF.

The sale of ATH was for Rabukas fuck ups, but not NBF.

In my opinion NBF was a life saver to Fiji for 5 year period when it created $50 million a year that was pumped into economy. ( it was misdirected for sure, but the economy buzzed along ok with inflation less then 3%)The cartel of ozzie & Kiwi banks shut NBF down, but thats ok...nbf had served its purpose....no doubt inadvertanly.

Thank God NBF is gone now, Can you imagine what franky and the brotherhood would be up to.

Anonymous said...

God Help Fiji NOW


Stan said...

@Anony 2.39am

NBF had come to a point where they had no liquidity left and government then had bailed them out and then separated then into the good and the bad bank. There have been many academic articles written on this matter...i will try to provide a link later.

yes, thanks God NBF is gone but let's not be under the impression that it just went away without any cost. It was bailed out because all deposits held at NBF were guaranteed by the Fiji government.

DD said...

@ Anony 9.56pm

Your are correct Wadan's writing is akin to a journalist than an academic.

However, since Fiji's exchange rate is fixed a decline in reserves by $200m (from the current $1.6b) is not going to affaect Fiji's exchange rate and hence have no effect on imports or inflation.

Also bank liquidity is more than half a billion so again a $200m reduction should see no adverse effects on interest rates since liquidity of $300m is still exceptionally high based on historical trends. $300m is still high enough to keep interest rates down.

Anonymous said...

Could the RBF enlighten us all on what impact this $1 billion plus loan will have on Fiji's national debt?

Already we know that our national debt is very high as a proportion of GDP. Would it be still manageable?

What steps are the RBF taking to manage any fallout from this loan in the event it goes sour?

Anonymous said...

I am a student of accounting and it is extremely disconcerting that $200m can be given as 'interest free' for an indefinite period.

It reeks of bad management practice and should be written off. It does not take much imagination to think why both parties would like to maintain the status quo as both like to maintain their fake profits.

Good luck to the auditors of both companies. I will not touch either of them with a 100foot pole.

Taukei. said...

@ Anon 4:13.

Good luck there - didn't you know under PER God's forbidden?

Anonymous said...

@ critics of Professor Warden Narsey's writing style -

Yes, it's obvious to most of us that he's also doing the job of an investigative journalist given the draconian media decree and PER holding back the truth of what is going down in Fiji.

So where are Fiji's trained, investigative journalists, do I hear you say?

Good question!!

Professor Warden Narsey has delivered more than expected of him and has paid a high price for it, in case you haven't noticed!).

He cannot do and be every thing to every one, at all times, every time.

If only our so-called respected, well-educated Fijian academics would do likewise, weighing in on issues currently affecting Fiji in order to ensure that the TRUTH about the Bainimarama dictatorship is widely disseminated.

Lastly, I wouldn't worry too much about the "wrapping" than the substance of what's contained in the package - it's an easier read to digest if you're targeting a wider audience - don't ya think?

trues up said...

Quit kutu picking. Prof Narsey does an excellent job communicating the facts and count ourselves lucky weg etting the information and analysis that we are certainly not getting from fiji media or so so-called academics

Anonymous said...

and what's RBF's role in all of this? arent they suppose to supervise FNPF??to FNPF - wheres the due diligence? cmon man thats our money! how could u give away USD200m with a low interst rate like that!! this is a big joke.

Anonymous said...

2011 @ 9:56 PM is a snob, probably a coup supporter from USP .

As always, Wadan has provided an excellent analysis that can be understood by all.

He is the only academic speaking out. The rest of the nincompoops at USP School of Economics, self-styled leaders like Biman Prasad and Vijay Naidu, are busy collecting fat USP salaries and feathering their nests.

Apart from a few half-hearted statements mostly for show, these cowards have done nothing significant in the last five years since the coup.

None of them raised a voice when Wadan was unfairly sacked from USP.

In Fiji these two act like big shots but in reality they are third grade academics who would not have become professors in any other university in the world.

The are not fit to lick Wadan's shoes.