NFP calls for more information on Waqavuka Financing
September 3, 2020 4:45 pm
National Federation Party Leader Professor Biman Prasad. [Source: Fijian Parliament]
NFP Leader Professor Biman Prasad today called for more disclosures on Fiji Airways Fleet Acquisition and Waqavuka Financing Limited.
Prasad says they are aware of the processes of leasing and the nature of the aviation industry and the acquisition of aircraft.
The National Federation Party Leader claimed there is a lack of disclosures on Waqavuka’s financial statements.
“What does come out again from his statements is the lack of clarity or disclosure on the actual lease arrangement payments, for example, the loan, the summary paid, the special purpose company, how much Fiji Airways is paying that company to act on behalf of Fiji Airways to transfer those payments to the banks and so forth.”
Minister for Economy Aiyaz Sayed-Khaiyum earlier clarified that Waqavuka Financing Limited is owned and managed by an international commercial services company called Vistra Capital Markets Ireland Ltd whose employees are Directors of Waqavuka Financing.
It holds the Title Deeds to the three A330s until Fiji Airways loans are paid.
Sayed-Khaiyum stressed Waqavuka Financing is not owned by Fiji Airways, commercial banks which provided the loans to the airline, the Fiji National Provident Fund nor Fijian government.
Sayed-Khaiyum says Waqavuka Financing registered in Ireland, simply remits aircraft rent repayments from Fiji Airways to the commercial banks.
Fiji Airways secured loans from a consortium of German commercial banks to purchase 3 new aircraft on the condition that the financing would be guaranteed by the European Export Credit Agency.
This is where Waqavuka Financing Limited comes in. It is a special purpose company that was set up in the 1990s when the then Air Pacific purchased a Boeing 737.
Sayed-Khaiyum adds the company is a neutral entity between Fiji Airways, commercial banks and the Export Credit Agency which has guaranteed the loans.