Review reveals FSC guarantees no longer a contingent liability

Cane trucks queued outside FSC Labasa mill. Picture: SERAFINA SILAITOGA/FT FILE

The International Monetary Fund (IMF) had advised Government that the guarantees it provided Fiji Sugar Corporation were a potential risk for Fiji.

This, according to the Standing Committee on Economic Affairs after a review of the Ministry of Sugar annual reports from 2012 to 2016.

The review found that the IMF had said the annual guarantee to FSC was “no longer a contingent liability”.

The report said Government had appointed Deloitte consultants to review the sugar industry.

“The Fijian Government endorsed Deloitte’s recommendation and provided direct funding of $138.3m in 2011 and $40.9m in 2012,” the report said.

The Standing Committee said the Sugar Industry Strategic Plan 2013-2022 was currently being implemented to reform the industry.

“The committee recommends that a monitoring and evaluation framework be put in place to ensure that objectives of the SISAP 2013-2022 are achieved accordingly.”

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