Former Prime Minister Voreqe Bainimarama

The legality of former Prime Minister Voreqe Bainimarama’s pension calculation was the focus at the Suva High Court this morning.

The hearing examined whether Bainimarama’s pension was calculated based on the full Prime Ministerial rate or the reduced salary following a 20 percent pay cut approved for all Members of Parliament during the 2019–2020 financial year as part of COVID-19 cost-saving measures.

The Principal Assistant Secretary to the Cabinet told the court that when Bainimarama requested his pension and gratuity on January 4 2024, the matter was referred to the Solicitor-General’s Office for review.

She said the advice given was to calculate the pension based on the salary earned each year. She also confirmed that the 20 percent pay cut for the Prime Minister and other ministers was still in effect at the time of Bainimarama’s retirement, and that the original salary may never have been restored.

The Head of Corporate Services stated that they had sought legal advice from the Solicitor-General’s Office regarding the pension calculation.

He explained that the instruction was to follow the formula in section 4(b) of the Prime Minister’s Pension Act.

He said that for Prime Ministers serving more than 10 years, the first two years would apply 20 percent of the used salary, the next three years 10 percent, and the following five years five percent.

A 75 percent pension cap applied for the period 2007 to 2017.

High Court Judge Justice Daniel Goundar questioned whether the calculations properly reflected Bainimarama’s role, noting that he held the title of Commander under the interim government in 2007.

Defense lawyers said they are working to clarify which salary was used in the pension calculation.

Three witnesses appeared as the court examined whether the pension was calculated lawfully and transparently.

Justice Goundar gave both the State and the defense 21 days to submit legal arguments.

Bainimarama is claiming $337,211.12 in outstanding gratuity, a fortnightly pension of $7,112.37, pre-judgment interest at 13.5 percent, post-judgment interest, and full legal costs.

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