Opposition MP Inosi Kuridrani (from left), Attorney General, Aiyaz Sayed-Khaiyum. [Photo: Parliament of Fiji/ Facebook]

Attorney General, Aiyaz Sayed-Khaiyum has clarified that Energy Fiji Limited was corporatized and its shares were later divested because it has the potential to grow.

His comments come after Opposition MP Inosi Kuridrani questioned the reasons behind selling EFL shares when the energy company was making profits in 2019 and 2020.

“It is strange that the government has decided to sell 44 percent shares. If a company is performing very well, why do we have to sell the shares?”

The AG has labelled this comment by the SODELPA MP as a lack of understanding of how company’s work.

“Very rudimentary understanding of companies I think was displayed again. If you have a company that is in trouble, and you sell the shares – you will get a very little price for it. You won’t get a premium price. So his understanding is, Oh! If a company is not doing well, let’s go off and sell it.”

Currently, the government holds 51 percent shares in EFL, while Sevens Pacific Pte Limited, owned by Chugoku Electric Power Company and the Japan Bank for International Cooperation has 44 percent shareholding. The remaining five percent is owned by Fijians.

Sayed-Khaiyum says Japanese companies are renowned for accountability and transparency.

“They would only participate in a market where they would know, that there is no political interference with the affairs of the company. One of the major reasons why FEA for a number of decades has a very weak balance sheet is because previous governments and ministers played around with the tariff rates.”

The Minister also explains EFL is able to fund its own capital investment because of its strong balance sheet.

Sayed-Khaiyum the company now runs independently as there is no outside influence.