The 7 Sins of NLTB.

In a follow up to a S.i.F.M posting on Natadola, an article published by Fiji Sun reveals the gross malpractice in the negotiation phase of the project. Other investigations, as reported by a Fiji Village article-that FNPF was investigating the allegations of the loan being unsecured.

Recent report by Radio NZ of a whistle-blower from Fiji National Provident Fund outlining the alleged malpractices in Natadola, sent to the office of APRIL's Chief Executive Keni Dakuidreketi. Ironically, it was the same Dakuidreketi who was heavily involved in securing the native land in question, by virtue of being a board member of Native Lands Trust Board. This issue has ignited heated dicussions in online forums like Fiji Exiles and My Fiji Friends.

APRIL's foreign investor license cancelled
Friday June 01, 2007

The foreign investor license for Asia Pacific Resorts International Limited (APRIL), the sacked project managers of the multi-million dollar Natadola project, and two other related companies has been cancelled.

Interim Commerce Minister Taito Waradi confirmed that the licenses have been cancelled by the Fiji Islands Trade and Investment Bureau. It is understood that the FTIB had initially issued a notice of cancellation of licences for APRIL, the Natadola Land Holdings Ltd and a related company Hotel Property Pacific Limited (HPPL) early last month.

The companies were given 15 days to reply. The licenses were cancelled two weeks ago.
Waradi says if the companies wanted to appeal the decision, they have to appeal to the ministry. "And it hasn't come yet. So I don't know whether they are going to appeal or not," [Waradi] said.

A principal of APRIL, Keni Dakuidreketi says he does not wish to comment on this "because there is a legal process involved".

No comments could be obtained from FTIB on why the licenses were cancelled. Both FTIB chief executive officer Lailun Khan and board chairman Jim Ah Koy are out of the country. Ah Koy said he has been in New Zealand for three weeks and could not make a comment.

APRIL has been in the spotlight since the newly appointed Fiji National Provident Fund board axed the company along with contractors COTEBA in March claiming the Natadola project was 26 weeks late and only 10 per cent of the work had been carried out after about $60 million was pumped into it.

Felix Anthony, the chairman of Natadola Bay Resort Ltd (NBRL) also claimed that Interpol reports show that the promoter of the Natadola project Gerard Saliot had a criminal record, which he did not disclose when obtaining a work permit.

APRIL and its chief executive officer Saliot are the founders of the Natadola project. Anthony went on to reveal details of Saliot's past and cancelled APRIL's contact as project managers.

In 2004, the NBRL had hired APRIL to be project managers for this development. Saliot is the principal of the three companies.

Fijilive

APRIL subsequently had their Foreign Investor License revoked as reported by Fiji Live article; the decision of which, is currently being appealed by APRIL according to a Fiji Village article.

The following is an excerpt from a Fiji Sun article:

Natadola has no proper documentation
Fiji Sun.
Last updated 6/21/2007 8:28:02 AM

The ousted project manager of the Natadola Development Project did not provide proper documentation on the project, the Fiji National Provident Fund claims in its report to Cabinet. The FNPF also alleged that with the native defects it has, the Natadola investment does not have valid security.

Defects that are sufficient to void the native land lease include;

• No survey carried out over the native land as requirement of the Native Land Trust Board


• De-reservation of native land not completed on the date of sale on July 2, 2004


• De-reservation of native land for the new lease not completed


• No evidence exist that section nine of Native Land Trust act was satisfied objectively prior to the issuing of the lease of the land sold to NLH


• Dissatisfaction by landowners manifested in Civil action 33 of 2007


• Conflict of Interest that exist at all times between NMRL and NLTB on the issue of common directorship

The report also stated that the value attributed to the land and the concept contributed by APRIL, $20million, was greater than valuations of land prepared by Jones Lang LaSalle and Colliers, which was $5.5million.

• APRIL was entitled to a 15 per cent ‘special dividend’ on gross land sales


• APRIL secured fees from Management Works, was paid a monthly fee of . The whole Natadola project is unknown and it is not prudent investment procedure to have such an investment


• APRIL gained from contributing a defective land lease and not cash to finance the project


• Management services appear to have been given to APRIL to undertake because of its existing involvement in the project. The basis of APRIL’s dollar value of monthly fees is unclear and there appears to be no tender process in this regard


• Feasibility Studies were done by Euro-Asia Management which is an donkey of APRIL and thus independence is questionable


• NBRL continues to pay outstanding invoices to contractors who were contracted by APRIL since August 2006


• Due diligence and analysis originated from APRIL and not from FNPF or FIL


• Increases in total budgeted costs by $73.1 million from $270 million in 2003 to $343 in 2005.

Fiji Times article, quotes the Interim Fijian Affairs Board Minister who commented on the unsecured lease of the land occupied by the Natadola project. Undoubtedly, this very aspect of unsecured lease of native land, raises serious questions on the integrity of NLTB and quality control mechanisms into their entire portfolio of hotel projects in Fiji.

Lease hinders resort: Minister

Saturday, June 16, 2007


THE issue of the unsecured native land lease title at Natadola Resorts could have been ironed out had there been a clear line of communication between all the parties involved and the Native Land Trust Board, interim Fijian Affairs Minister Ratu Epeli Ganilau says.

He said while the Fiji National Provident Fund required a properly secured lease to release the funds, the NLTB said a provisional or temporary licence was enough for the developers to begin work and even use this provisional title to solicit funds for development purposes.

However, yesterday landowner representative Ratu Osea Gavidi said landowners would now take their land back and would not allow Fiji National Provident Fund Investment Limited to continue development in the area.

Ratu Osea said landowners had been neglected in the ordeal and they were now doing what was best for them. [Gavidi] said they would consult the NLTB regarding their options and if the NLTB did not act in their best interests, they would seek legal redress.

Ratu Epeli said the NLTB's stand was that after issuing the provisional title developers could then secure the permanent title while development continued.

A subsequent article by Fiji Times in light of these discrepancies in Natadola, forced the Interim Minister to offer equity of the Hotel project as a good will gesture to the landowning units, after being manipulated by officials employed by NLTB.

Shares offer for landowners

Saturday, June 23, 2007

LANDOWNERS at Natadola have been offered equity shares in the multi-million dollar hotel project being developed on their land.

This was revealed by interim Minister for Fijian Affairs Ratu Epeli Ganilau at his first meeting with the landowners of the vanua Nasoqo, at Sanasana Village, in Nadroga, on Thursday.

[Ganilau] said the meeting was prompted by a visit initiated by landowners of Nasoqo, who raised several concerns about the Natadola project. He told the villagers they would have to clarify with the FNPF the company they would invest in and how much shares would be offered.

"This was the first vanua delegation to have visited me in my capacity as interim Minister for Fijians Affairs and Provincial Development," [Ganilau] said. Ratu Epeli said at the meeting it was clear to him the issues they wanted to him to look into, which was why he wanted to update them on progress made since then.

The delegation requested: The continuation of development at Natadola; that another meeting be held between the Fiji National Provident Fund and the landowners before they make a decision on APRIL, the original land developers; that the trickle effect of development on the land not be reserved to the lease premium or royalty but equity shares be offered by the FNPF so they could have ownership of the overall development.

Ratu Epeli said the FNPF had decided APRIL no longer held the licence to develop the area. He warned landowners to be vigilant of rumour monger."I urge you, the landowners, to be firm and to love one another in this matter," he said.

What is concerning is that, why weren't these project shares part of the original negotiations by NLTB?
Reviewing the reports into Natadola, it is now apparent that officials within the NLTB had undercut the landowners for their own financial gain. What irks most landowners and the greater public is that, Why didn't these transactions raise any red flags in the entire system of Fiji's land tenure?
What happened to accountability, checks and balances?

A Fiji Live article covers the preliminary investigations in Native Lands Trust Board and their involvement with Hotel developments in Fiji.

NLTB investigation report ready
Thursday June 21, 2007

A report on the investigation into Fiji’s Native Land Trust Board will be submitted to the Interim minister for Fijian Affairs tomorrow. The report will be submitted by the Independent Investigating Team into Institutions Fijian (IITIF), which was set up by the interim Government to investigate all Fijian institutions.

“A report will be handed over to Ratu Epeli and interim Prime Minister Voreqe Bainimarama for their scrutiny and also if the need arises than the Fiji Independent Commission against Corruption (FICAC) will be involved,” said board member Ponipate Lesavua.

“Altogether 68 cases of corruption, illegal land sales, misuse of funds and secret dealings between certain chiefs and hotel developers are contained in the report,” he said.

He also said contained in the report are investigations regarding Fiji-born millionaire, Ballu Khan concerning his involvement with NLTB. “Although the NLTB board has carried out its own investigations into Khan, our team have come out with a different matter altogether.”

“Credit should be given to KPMG after auditing NLTB and this has also made our work much easier.”He said certain discrepancies have been labeled against Khan which is contained in the report.“This will not be revealed until it has been scrutinized by Ratu Epeli.”

A prominent chief is also under investigations for allegedly swindling thousands of dollars out of landowners and making dubious deals with hotel developers in the Coral Coast.“The case regarding the chief has been classified as a criminal case and we will surely involve police in this matter.”

IITIF have wrapped up investigations on the Native Land Trust Board and will be moving to the Ministry of Fijian Affairs soon before a ‘clean up’ at the Great Council of Chiefs begins.

The team comprises Colonel Apakuki Kurusiga as chairman and Ratu Luke Yavaca as deputy chairperson. Other members are former Senator and police inspector Ponipate Lesavua, Kalaveti Batibasaga, a consultant on indigenous affairs and Alifereti Roko, the senior auditor at the Ministry of Finance.

Other Fijian institutions subject to scrutiny by the team include the Fijian Affairs Board, Native Land Commission and all other interdependent institutions like the Fijian Scholarship Unit and Provincial Councils.

Fijilive

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