August 26, 2010 Leave a comment
Fiji Sun has reported that the IG has claimed that the Fiji Government has stepped in to provide $120 million to stop FSC from closing down.
The IG needs to assure the workers of Fiji that he hasn’t taken this money from Fiji National Provident Fund.
If banks won’t lend to FSC, FNPF should not lend the money either. This is not the IG’s money. It’s the life savings of our workers.
If FSC goes bankrupt, all of the FNPF money will be lost and the Government won’t be able to help because they’ll have to pay the banks back for loans they guaranteed in the past.
|$120m help to FSC from govt|
Government, on May 5, 2009, had approved a government guarantee for $70m, which expired on May 31 2010 before the FSC sought an increase to this Government guarantee to $120 million effective from March 16 2010, to May 31 2012.
This was to meet the increased working capital deficit arising largely from high levels of capital expenditure associated with the Mill Upgrade Programme, and poor milling performance at the three larger mills due to commissioning issues associated with the newly upgraded plants.
Government was to have given $30 million to the FSC against this guarantee in early March this year to meet its working capital requirement and to make the third cane payment to the growers. An additional $20 million was required in the early part of the 2010 crushing season to meet FSC’s operational expenditure and growers advance delivery payment before sugar proceeds for the 2010 crush begin to flow in.