[Photo: FILE]

Assets Fiji Pte Limited is generating modest returns despite managing more than $92 million in government assets.

The company is being urged to improve asset use and generate greater commercial value from its portfolio.

The Standing Committee on Economic Affairs said there was considerable scope to improve asset use, increase commercial returns and unlock greater value from underutilised government holdings.

Committee Chair Sakiusa Tubuna pointed out that AFL’s total assets increased from about $64.36 million in 2020 to more than $92 million in 2024.

Tubuna states the growth reflects asset revaluations and the company’s management of strategically important government-owned land.

However, the committee found that returns remained relatively modest despite the size of the asset portfolio.

It says historical lease arrangements, nominal rental agreements and restrictions linked to public ownership have affected the company’s ability to maximise returns.

The committee also raised concerns about the level of information provided in AFL’s annual reports.

Tubuna said details on leases, portfolio occupancy, revenue composition and asset utilisation were limited.

The committee wants AFL to review existing lease arrangements and improve how it reports on the use and performance of its assets.

It also wants the company to strengthen sustainability reporting, resolve outstanding asset vesting matters and establish a clear strategic framework for future growth.

Tubuna adds that AFL’s performance should not be measured only by its ability to preserve public assets but also by how much economic value those assets generate.

The committee adds that the recommendations are aimed at strengthening governance, transparency and accountability while ensuring national assets deliver greater economic benefits for Fijians.

AFL is a 100 per cent Fijian Government-owned asset-holding company, established on November 13, 2015, under the Companies Act 2015.

Parliament has unanimously agreed for debate on the report to be initiated at a future sitting.