Minister reveals alarming mismanagement in FSC

January 12, 2024 4:46 pm

Fiji Sugar Corporation

In a startling revelation Minister for Sugar Charan Jeath Singh, exposed severe mismanagement within the Fiji Sugar Corporation.

The Minister presented documents showcasing questionable governance practices within the FSC, particularly focusing on the aftermath of Cyclone Winston and the subsequent handling of insurance claims.

Minister is recommending the set-up of a Commission of Inquiry to look into the dealings of the FSC from 2006 to 2023.

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Singh outlined a shocking incident claiming that FSC’s former CEO and executive chair, Abdul Khan, unilaterally settled an insurance claim of $97 million for a mere $30 million without board approval or government consent.

“Here we got a $97 million claim. And this man, without approval of the board, without approval of the government, single handedly went and signed in a settlement for $30 million. That’s how. That’s where the FSC’s rot started.”

Singh claims that the loss of $61 million for the government is due to the questionable settlement. He claims these crucial decisions were made without proper oversight.

“But here they have agreed without any negotiation, without any claim, just to settle for that. So this is what I’m saying. Where the industry has gone is because of all these type of negotiations and deals behind the back of the government”

Singh also brought attention to the Penang Mill, revealing that a consulting firm recommended repairs with a combined insurance payout and an additional $2 million from the government.

However, the funds meant for the mill were diverted overnight to another FSC project, leading to the closure of the Penang Mill and its subsequent sale as scrap metal to a Korean company.

The Minister states the inquiry will scrutinize the decisions made, aiming to bring transparency and accountability to the forefront.