Monday, May 31, 2010

Momi Bay write off now stands at 55 million dollars

Fijivillage News - 31 May 2010

The total amount of member's funds from the Fiji National Provident Fund which has been written off from the Momi Bay Resort project now stands at $55 million.

The FNPF's 2009 Annual Report summary highlights that an additional $18.21 million was written off from the project as part of a loan from the FNPF and this was revealed when the Fund announced the total write down of $327 million earlier this month.

It has now been confirmed that FNPF had written off an initial $37 million from the project in the 2008 financial year which takes the total amount written off for the Momi project to $55 million.

The FNPF 2009 report summary also revealed that during the year, 11,594 new members were registered with the FNPF, bringing the total membership to 357,662 which reflects an increase of 1.5% compared to 2008.

During the same period, the Fund's active employers totaled 6,944 and more than 200 employer's accounts were closed.

The total contribution collected was $288.49 million, averaging $24.047 million per month which reflected an increase of 2.36 percent from 2008.

The total balance for all member's accounts was $2.69 billion an increase from the $2.61 billion for the previous year.

However, as revealed by Fijivillage earlier, the FNPF recorded a net loss of $181.15 million in 2009 due to the write down of the Natadola Bay Resort and Momi Bay Resort projects earlier this year.

$181 m FNPF loss ‘because of write off’
May 29, 2010 

The Fiji National Provident Fund has announced a net loss of $181.15 million for the 2009 financial year saying it would have recorded a net surplus of $146.492 million if it had not been for the fund’s recently announced $320 million write off.

FNFP board chairman Ajith Kodagoda said in a newspaper advertisement of the fund’s financial results that the loss was a “direct result of the impairment to the Natadola and Momi (resort) project in which the Fund had to write down $320 million as announced a month ago”.

Kodagoda explained in question and answer format that “impairment” arises if the market value of an investment is lower than its carrying value.

“When that happens, an adjustment is therefore made to reflect the market value of the investment into the books.

“In this case, the Fund invested significantly in Natadola and Momi. Valuations for both properties, based on prevailing market conditions at the time of the valuation, recorded that their market value was $302 million less than what the Fund had invested in both.”

The Fund wrote off $302 million for Natadola and $18 million for Momi.

Government announced the write off a month ago raising questions about the safety of members’ funds and the viability of the country’s only superannuation fund.

Kodagoda said while the sustainability issue has been raised as a potential risk in the future, the board was taking all necessary measures though government-initiated reforms to the Fund to address it now.

He conveyed his appreciation to the government for the “political will” to support the reform programs.

Members’ funds are “definitely safe” because net assets are still well in access of members’ funds.

The Fund’s total assets as at June 30, 2009 stood at $3.30 billion compared with $3.50 billion the previous year.

Kodagoda said without the write down, the 2009 net surplus would have been $146.492 million, a19 percent improvement over the $123 million surplus of 2008.

Despite the write down, the Fund “did well”, he said.

Its investment income increased from $194.03 million in 2008 to $237.39 million in 2009.

Its investment portfolio grew by 2.8 percent. Fund membership increased by 11,594 to 357,662 in 2009.

Contributions increased by $6.81 million to $288.49 million.

Comments posted on

  • Fellow Freedom Fighters,

    This massive loss at FNPF is again the result of the 2006 Coup by these illegal regime who seem to go around and kill the golden gooses that were laying the golden eggs for Fiji. This only reflects their lack of Business acumen and macro economics. Yet they want to tell the Fijian people that someone should be taken to task for the massive loss at FNPF. What a bunch of idiotic nincumputs!! Business is based on trust, economic stability, and an independant judiciary. If these are not in place, then you can scream until the cows come home, no right thinking businessman or entity will invest in Fiji again. All these regime will attract will be criminal elements who pose as business entities and corrupt individuals who have hidden agendas to take advantage of the situation. No right thinking well educated law abiding citizen will serve an "illegal" entity who are trying to save themselves from their ultimate destination and that is the "NABORO MAXIMUM PRISON" where even George Speight has said " Frank will join me, its just a matter of when"
  • They can use propaganda, illegal decrees, money, force, or even their guns. It will never change the Fijian hearts and minds. All that they are doing to the people is the elements of someone who is fearful and afraid of what is to befall them eventually. One must understand Military deception, when you are fearful, act as if you are not. All their strategic thinking is being read like a book. We await your next move Voreqe, be careful of the Check mate for it will come like the night. your move.......
  • $181M loss??? This is disatrous. First time ever for the poor FNPF. So the saying that everything Voreqe touches turns into dung continue to haunt the nation. And what are these bastards doing including Kokoda or whoever. They seem to still praise themselves when everyone in this coutry now wants them sacked. And Voreqe to go kill himself for the record poor performance and board selection. This is bad. What is this 'did well' sacastic comment by this idiot mean. What is investment portfolio grew. What is this membership increase. And what is contibution increase that their talking about when at the end their performance nett a loss.
  • I dont see any other choice apart from SACKING THE M..HER F..KERS. Ra yavusa macawa nodra gauna ni veiliutaki. Ra tu mai vei mera mai vakacacana na ka vinaka sa rawa tu. Sa sega tale ni dua na vosa vinaka eda rawa ni tukuna. O Voreqe na ena gauna qo me lai kunati ratou mada vata kei ira kece na board wili kina o Kokoda se o cei na kaitani ya. Sega ni fund nei Ta qo Voreqe.
  • And did everyone read their response to IMF regarding their request to once stop lending. They still insists to continue lending regardless. Come on Voreqe and board members. Sa sega ni va sara tu ya na lialia ni tamata. For once listen up Voreqe. Everything is crashing and you still going your own way. LISTEN UP VOREQE. Kua mada na yalo kaukauwa tiko. Na yalo kaukauwa kei na tawa ni qavokavoka e duidui.
  • You don't have to be a rocket scientist to know that the FNPF writeoff will continue as the illegal regime goes into top gear with its no money reforms. A good example is the Lau Province Boat bought by Roko Ului with the FNPF money that was stopped by Semi Leawere because the Lau Province or Rokoului did not have any collateral for the loan. They sacked Semi so that Roko Ului could get his loan and we all know what is happening to the Lau Province very new Boat sitting on dry docks at Lami.This will be another writeoff. Then of course there is the Sugar Industry Reform. The illegal Regime will use the FNPF money and then it will be another writeoff. This illegal regime has no where to go now except to hold elections to enable a democratically elected Govt to take Fiji foward.

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