FSC losses of more than $154m to be investigated
June 22, 2019 7:00 am
Prime Minister and Minister for Sugar Voreqe Bainimarama has called for an investigation into the dealings of the STM Company.
The company was responsible for mill upgrades in 2005.
Bainimarama told Parliament that a report will be out soon to launch an investigation into the financial losses of more than $150 million that the Fiji Sugar Corporation incurred.
“But the total STM project costs finally capitalized by FSC was $118 million in 2010/2011 financial year, there will be an investigation into this. Honorable Speaker as we’ve spent a lot of money on something that was totally useless, the total losses to FSC came to $154 million.”
Bainimarama also highlighted that the government took a loan from the EXIM Bank of India of $50.4 million dollars to secure the agreement which was meant to support the viability of the sector.
Instead, the mills were further dilapidated and a massive financial loss was incurred.