Fiji Time: 11:05 PM on Tuesday 1 December

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Miller makes profit

Tuesday, April 08, 2014

DESPITE a financial review in 2010 that FSC would take seven years to financially recover, the company proved that wrong and made a profit in 2012.

Ministry of Sugar director Viliame Gucake told members of the Committee for Better Utilisation of Land that government paid $260,000 to New Zealand-based Deloitte Company to review the finances of FSC and the industry.

"Contrary to the recommendation of Deloitte in 2010 that it would take another seven years beginning 2011 before FSC will continue to return losses and it would make no profit, we still made profit," he said.

Mr Gucake told the committee that according to the financial position of FSC in 2009, it had 35 cents in current assets for every dollar of current liability that it owed to creditors.

"It means that if creditors called on FSC to pay up all of its debts, for every dollar of liability it owed FSC only had 35 cents which means that government would have to foot the balance," he said.

"Furthermore, the Fijian Government had spent $260,000 to employ the Deloitte Company in New Zealand to review the finances of FSC and the sugar industry.

"Government spent about $116million between 2005 to 2006 for rehabilitation programs on three sugar mills — Rarawai, Lautoka and Labasa."

Mr Gucake said the Qarase government had initially employed the Sugar Technical Mission (STM) of India and when this government came into office in 2006, the implementation process for the rehabilitation works was already in place.

"The current government then borrowed $US50.4million — equivalent to $FJ86m, and in addition FSC had also loaned an additional $30m for the mill program totalling to $116m," he said.

"Penang mill was not part of this costing but we were given to understand that any surplus equipment from those three sugar mills would be used to upgrade the mill."

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