Natadola Project -Grapes of Wrath Or Sour Grapes

The 'landowner' factor has catapulted the Natadola Resort project well under the official spot light for several major inconsistencies, both in Engineering and Financial accountability.

The Natadola Resort project is still simmering in the headlines, by way of a Fiji Times report, which described threats of repossession, made by the landowners of the Natadola real estate. It appears that the landowners were advised by Osea Gavidi, of Viti Levu Resource Owners Association.

This is a micro excerpt of Fiji Times article:

FNPF wrong, say tribes

Fiji Times Wednesday, March 21, 2007

A GROUP of landowners has hit out at the Fiji National Provident Fund for discrediting the work done by Asia Pacific Resort International Ltd developers of the $180million resort at Natadola.

The landowners are from seven yavusa, 12 mataqali and 18 tokatoka of the vanua o Nasoqo in Nadroga who own the land on which the resort is being constructed. Their chief is the Tui Nasoqo Ratu Timoci Kolikata.

Speaking on behalf of the landowners, advisor Ratu Osea Gavidi said a delegation yesterday discussed the matter with interim Fijian Affairs minister Ratu Epeli Ganilau.

He said they had asked the interim minister to intervene and stop the FNPF making unilateral decisions on APRIL and director Gerard Saliot without consulting the landowners.

He said the delegation was shocked at the way in which FNPF was handling the matter because the people held the project dear to their hearts since all the land at Natadola was committed to the project.

"He (Ratu Epeli) has pledged to approach FNPF over the matter as the project spans 1145 acres of Native land. The vanua wants equity in the project," Ratu Osea said.

Ratu Epeli could not be reached for a comment.

The landowners last night met with Mr Saliot and APRIL officials. Ratu Osea said the matter would be further discussed with the Native Lands Trust Board today. NLTB spokesman Semi Tabakanalagi confirmed the land in question belonged to the seven yavusa.

Ironically, it is the same Gavidi, who seemed to be the mouth piece to a fraudulent scheme with the fictional bank O.I.T.C last year, claiming that a certain foreign investor was willing to donate US$6 Billion to establish a indigenous operated banking enterprise in Fiji, which was reported by a Fiji Village article.

This is the excerpt of the FV article:

Media chased from MOU signing
By fijivillage
Mar 3, 2006, 17:57


Members of the media were chased out after the signing of the Memorandum of Understanding between the Office of the International Treasury Control and the Viti Land and Resource Owners today.

The press conference with foreign national Dr. keith Scott who claims to be the Head of Cabinet of OITC was abruptly terminated after specific questions regarding the validity of the 6 billion dollars being offered by the company to set up a commercial bank was brought up.

Questions on when and how the initial 3.8 billion would come through were left half answered by Dr. Scott after front man for the resource owners Masi Kaumaitotoya called for security to escort the media out.

Doctor Scott also revealed at the Bose Ni Turaga earlier this week that he would transfer the first payment of $3.8 billion by yesterday afternoon. However nothing has eventuated since the announcement.

When questioned earlier today on why the transfer was not done, Resource Owners Association President, Ratu Osea Gavidi said there is no bank account in Fiji that can hold $3.8 billion.

In the MOU, 50% is to be funded by the OITC and the other 50% is to be provided by the landowners who are expected to use their land and resources as monetary value.

This afternoon, members of the media who were at the press conference were handed a copy of the MOU which contains a signature under the name Dr. Ray. C. Dam. The document under the OITC header also shows its offices based in Malaysia, Netherlands, USA, Australia and Ecuador, however no information on the company or Dr. Dam is available at this stage.

The MOU states that OITC will provide total 2.805 billion dollars for an acquisition of trucks and timber milling plant and equipment for landowners, development of a Community Aged Center, development of community owned tourist and resort centre construction of modern prisons for Fiji and reforestation programme through Triunion investment Holding company and the resource owners association.

Meanwhile, Fiji Police are now seeking the assistance of their overseas counterparts to try and establish the authenticity of the claims being made by foreign national Dr. Keith Scott and the background of his company called OITC.

Director CID Joe Rasiga has confirmed with Legend FM news that a weeks search for information on Dr. Scott and OITC has been fruitless and now Interpol has been called in.

The issue of landowners choosing which company as their preferred project managers, for a construction site on their land is nothing more than obstructive hair splitting.

Although, the land rightfully belongs to Natadola; the concerns of the project financiers (FNPF) supersedes those petty issues of land ownership. Once the approval was given by the Natadola landowners for this particular project, it is counter-productive for the landowners to choose which building contractor or project manager is more favorable. To micro-manage which crane operator or which Electrician should take their job because another does not meet their liking is a complete mockery of indigenous affairs. Those decisions are well out of their jurisdiction of landowners; once their approval for the project is given.

FNPF's subsequent decision would be crucial, because it does not want the construction quality to be compromised, furthermore it wants a fair return for their investment, by ensuring those engineering standards remain as, a degree of excellence.

Gavidi, appears to be riding on the band wagon of cultural insensitivity; that inextricably could frustrate the project's major financier. Gavidi's ignorance of the fundamentals of Engineering standards and the contractual aspects from FNPF's standpoint could accelerate that level of frustration.

FNPF could respond by withdrawing financial backing and terminating the project altogether, if the threats by landowners are taken seriously. Without capital drawn from Fiji National Provident Fund (FNPF), Natadola would only be a well-frequented beach. Money changes those perceptions, as rapidly as a blink of an eye.

APRIL claims rival company raided office

Fiji Live-Monday March 19, 2007
Sacked project managers of the multi million-dollar Natadola Project, Asia Pacific Resort International Limited (APRIL) are claiming their replacements tried to forcibly remove documents from the company's offices.

APRIL's project director Keni Dakuidreketi alleges that representatives from local engineering consultants HLK Jacob "tried to remove files" on the Natadola Project but were told leave by APRIL staff.

However, HLK Jacob director Brian Jacob has categorically denied any involvement by his staff saying it was not his company's responsibility to remove documents from APRIL. He said it was not his staff but members of the Natadola Bay Resort Ltd (NBRL) that tried to enter APRIL's offices.

Jacob said the Natadola Project is currently under investigations and the only people that can have access to the documents are the fraud investigators and his company was in no way involved.

Dakuidreketi said no one would be allowed to enter APRIL premises without a court order. He also said APRIL was concerned about the alleged "close relationship" between HLK Jacob and Northern Projects Fiji, which is the building contractor for the first phase of the Natadola Project.

Northern Projects Fiji representatives referred all questions to the NBRL that last week fired APRIL and Natadola's construction managers COTEBA citing non-performance.
NBRL chairman Felix Anthony said last week that while $60 million of the projected $140 million has been spent on Natadola to date, only 10 per cent of work has been completed with the project late by 24 weeks.

He said that since they were hired in mid-2004, NBRL has paid APRIL $8 million in management frees to oversee the project, but have been unsatisfied with the results.
Fijilive

One niggling matter to comprehend is that, how was APRIL Development awarded the role as construction project manager in the first place, especially when the main representative of APRIL-Messr Keni Dakuidreketi is not qualified as a Civil Engineer nor does he or APRIL have any experience whatsover in structural design or in major building construction.

By virtue of these facts, it is mind boggling how APRIL could have the knowledge or experience as a construction project manager (a specialized field in Civil Engineering) to justify the exorbitant management fees it charged.

This is Dakuidreketi's CV posted on the website for Yaqara Group Ltd .

Director
Keni Dakuidreketi
Fijian
B App Sc (Prop Mgmt) Aust.

As Managing Director and founder of Rolle Hillier Parker - Fiji since 1990 (world wide associated with Hillier Parker & ONCOR Group of Companies), Keni has had extensive property experience with coordination and financing large scale property developments in Fiji. From 1984 - 1987 he was the Estate Officer with the Fiji Native Land Trust Board and worked as Director of Valuation for Harrison Grierson Consultants for 3 years.

He is Chairman of Fiji Rugby Union, Chairman of the Lands Transport Authority, a Board Member of the Housing Trust Authority, the Native Lands Trust Board and Natadola Marine Resort Ltd and sits on a number of other high profile community boards and organisations. Keni was a member of the Interim Civilian Administration and was appointed Minister of Youth, Sports and Employment Opportunities. Keni is a principal and runs a successful business in real estate management and consultancy as well as a management consultancy company.

Consulting Engineers appointed by FNPF have accused the former Natadola Resort project manager of substandard work and that the existing building designs within Natadola project; do to meet the New Zealand building code, which Fiji had adopted.

Threat to stop FNPF project-
Firm defends contract amid landowner demands

By CHEERIEANN WILSON
Fiji Sun.

Natadola landowners yesterday warned the Fiji National Provident Fund that they would terminate leases in the multi-million-dollar hotel project if it fails to reinstate sacked project manager, Asia Pacific Resorts International. Viti Landowners and Resource Owners Association interim president Ratu Osea Gavidi said 18 landowning clans of Natadola met last night to discuss the removal of APRIL, which had breached an earlier agreement with the initial developers. He said members of the tokatoka would not allow any company appointed to replace APRIL into Natadola.

FNPF board member Daniel Urai said APRIL was removed by legislation. “The issue of APRIL's termination is not determined by the FNPF. FTIB (Fiji Trades and Investment Board) cancelled APRIL's licence because it failed to declare previous bankruptcy and fraudulent convictions. APRIL was removed through legislation,” he said last night.

APRIL's replacement, HLK Jacob Limited, yesterday revealed that APRIL had approved its appointment by former construction manager COTEBA last August for supervisory structural services for the project. “We were appointed to this with APRIL’s approval from a shortlist of four local engineers on the basis of our track record in major projects. Obviously, APRIL had no objection at that stage, including independence issues, otherwise we would not have been appointed,” it said in a statement.

HLK Jacob stated that it uncovered a lot of discrepancies in the structural design in regards to the compliance with Fiji and New Zealand building codes.
“COTEBA and APRIL were notified of this issue in October last year – we have records of all these correspondences. We were strongly of the opinion that the structures were not designed to the NZ code as required under the Fiji Building Code,” it added.

HLK Jacob stated that no action was taken until January this year when engineer, Holmes Group, was appointed on behalf of the project structural engineer to review the design. Holmes Group agreed the design was not in full compliance with the NZ Earthquake Code and recommended a number of remedial works.

Holmes Group also recommended that any major deviations from earthquake codes could be handled if NBRL accepted an alternative design solution. Holmes Group, however, would not take any responsibility for any of its recommendations. HLK Jacob then resigned on January 23, this year, because it did not believe that the approach taken by APRIL and COTEBA to downplay the matter was in the best interest of FNPF and NBRL. “We were approached three days later by the FNPF board asking reasons for our sudden resignation. And we outlined our reasons to them,” it said.

HLK Jacob, in a letter to COTEBA Limited in January, stated that it was left with no choice but to resign as structural engineer because:

Structural design codes for the project had not been addressed by the structure engineers; and It has been over three months since the issue was raised but work continued without any resolution.

FNPF engaged HLK Jacob to act as its representative and technical adviser. “Our commission was to look in the technical affairs of the project. A series of correspondence were sent to APRIL/ COTEBA/ NPF for their response to the delays, cost variations, lack of progress and other critical issues,” the company said. “We received the responses and this was presented to the FNPF board and management.

Our brief was to put forward all the facts and opinion on cause. We, at no time, recommended their removal. “Our appointment as project/ construction managers is only an interim one at this stage until NBRL resolves how it intends to move forward.”

HLK Jacob director Sanjay Kaba last night denied claims by APRIL project director Keni Dakuidreketi that its representatives tried to enter the offices of APRIL at Natadola.“We understand that they tried to remove files. Our staff said HLK Jacob Ltd had tried to forcibly enter the offices of APRIL at Natadola,” Mr Dakuidreketi said.

Mr Kaba said the matter was between the FNPF and the landowners. Mr Dakuidreketi said in a television interview that FNPF did not consult with APRIL but instead obtained an opinion of the progress of the project from a contractor. He revealed that FNPF met APRIL and had said that it would need to review the MOU that had earlier been agreed to. However, APRIL was caught by surprise hours later when FNPF announced that it had been fired.

Efforts by APRIL Developments to stop the deluge of negative publicity with repeated media appearances was mediocre at best and could not distract the public from serious allegations of malpractice, recently publicized by the new board of Fiji National Provident Fund (FNPF)-the project's major financial backer.

Dakuidreketi responded in a Fiji Times article:

Mr Dakuidreketi said the Holmes Consulting Group, a leading New Zealand firm of structural engineers, had conducted a detailed review of the design of the resort's InterContinental hotel. This followed issues raised by COTEBA as the Natadola project construction manager. The issues were not raised by HLK Jacob as claimed, said Mr Dakuidreketi.

The Holmes review confirmed that the InterContinental design complied with the relevant New Zealand codes of practice and by reference, to the National Building Code of Fiji, [Dakuidreketi] said.

"A specific technical approach had been used to minimise earthquake damage as a few minor modifications were suggested by Holmes Consulting to lessen the risk of damage," Mr Dakuidreketi said.

"The cost of these was expected to be small and well worth the investment. These modifications only apply to work that is still to be done. It is not necessary to demolish large parts of work already completed as proposed by HLK Jacob."

Burchill VDM Pty Ltd, the consulting engineer for the hotel, has also endorsed the construction. Mr Dakuidreketi said. Burchill VDM is a leading Australia-based urban development consultancy and has worked on many major tourism projects.

Mr Dakuidreketi said HLK Jacobs favoured a much more expensive and unnecessary option to deal with the minor modifications required. "That, in itself, raises questions about HLK Jacob's approach. It is quite misleading to suggest there were major design flaws. This is not the case," he said.

He said as project managers, APRIL had presented all technical reports to the Boards of Natadola Bay Resort Limited and FNPF Investment Limited (FIL). APRIL's attempts to convene a meeting of all the technical consultants involved in the project have been rejected, he said.

Louis Gerard Saliot quit last week when confronted with details of his previous convictions, said Natadola Bay Resort Limited chairman, Felix Anthony yesterday.

Although, Burchill VDM Pty Ltd is a reputable company in Construction Management; arguably one would point out that, HLK Jacob would be more appraised about New Zealand's building code than Burchill, since it is a New Zealand company and has completed more projects in New Zealand than Burchill.

One wonders how APRIL became the middle-man in this million dollar project at Natadola. APRIL's use of consultancy Engineers, Burchill is equally an issue, since APRIL branded itself as project manager in construction; albeit with no qualified Engineers in their employment, nor experience to justify their excessive management fees.

It seems abundantly clear that, APRIL conveniently sub-contracted out Engineering consultancy to Burchill, but kept the lions share of the fees. This raises more questions like:

1. Why didn't Burchill itself become the principal project manager, rather than APRIL?

2. Did APRIL get the million dollar project, because Dakuidreketi was also a Board member of Native Lands Trust Board?

As the major funder for the project Fiji National Provident Fund(FNPF) was well within their rights to ask for an independent evaluation of the project. It is nothing short of prudent financial reasoning, for FNPF to get 3rd party analysis ensuring that works rendered, were made according to engineering specifications, entailed under New Zealand's building code.

HLK Jacob, a New Zealand company with major projects under its wing, was then acquired by FNPF to review the project and found some major discrepancies within the design and issued a work stoppage order.




Those discrepancies is disputed by APRIL Development's point man:

"Mr Dakuidreketi said HLK Jacobs favoured a much more expensive and unnecessary option to deal with the minor modifications required. "That, in itself, raises questions about HLK Jacob's approach. It is quite misleading to suggest there were major design flaws. This is not the case," [Dakuidreketi] said".

Of course, Dakuidreketi was ill qualified and out of his depth to make that crucial call. HLK Jacob was exceedingly knowledgable about those concerns, since a structural failure would damage the mechanical integrity of the entire project, as well as their own repuatation as Consultant Engineers.

It well appears, as project managers APRIL (via Dakuidreketi's rationale) may have tried to minimize further costs incurring; by avoiding the structural recommendations made by HLK Jacob, without any concern for damages on the building or their reputation, since they are known merely as property managers and not construction experts.

Club Em Designs