[Photo: FILE]

Opposition Member of Parliament, Premila Kumar, has questioned whether the government should continue owning Food Processors Fiji Limited after the company recorded losses in 11 of the 12 years covered by a parliamentary review.

Speaking during debate on the company’s annual reports from 2008 to 2019, Kumar said its combined losses were about $6.4 million.

Kumar says the company’s only profitable year, 2008, was due to a gain in the assessed value of investment property rather than its normal business operations.

She says Food Processors received approximately $5.2 million in government grants from the 2019/2020 and 2024/2025 budgets but paid no dividend to the government during that period.

Kumar says the company had also come close to losing assets worth about $3.5 million through a mortgage sale.

Kumar raised concerns about the company’s accounts, saying the Auditor-General had issued disclaimers of opinion for three years because of inadequate documentation.

She says an earlier Public Accounts Committee report had identified serious weaknesses in the company’s internal controls and recommended a merger.

She also pointed to the Standing Committee on Natural Resources’ site visit, which found that much of the company’s processing remained manual.

“The committee’s site visit also revealed why Food Processors is struggling. Members observed that much of the company’s production and processing remains manual, with heavy reliance on labour for processing, sorting, preparation, packaging and handling. Management confirmed that there is still no machine to automate the filling of palusami into cans, one of Food Processors’ flagship products, and we are in 2026.”

Kumar says ageing equipment and inconsistent supplies of produce from farmers were adding to its difficulties.

Kumar is calling on the government to consider a private partner, joint venture, merger or another arrangement that could make the company financially sustainable.

Prime Minister Sitiveni Rabuka told Parliament that Food Processors is among six agriculture-related public enterprises identified for a government review.

He said the company had shown more recent financial improvement, which needed to be sustained.

Deputy Prime Minister Manoa Kamikamica highlighted its five-year strategic plan and upgraded IT system.

He also acknowledged that partnerships with private companies could help Food Processors expand.