Sunday, August 05, 2007

A Thousand Chiefs With No Followers.

The recent episode involving the Great Council of Chiefs (GCC)members, who had taken legal action challenging the suspension of their membership, took many turns.

According to the Fiji Times Editorial, there is some confusion in the understanding of this agreement; brokered by the lawyers of the GCC members that resulted in the withdrawal of their legal challenge. Inferring that the mistake was on the Government side and not the GCC members. Such are complications when dealing with parallel structures, which many Fijian commoners are now openly questioning.

One such view, was published in the Letters to Fiji Times Editor, the following is an excerpt:

Who is a chief

BRAVO to Kalivati Toso for stating plainly what most Fijians today are thinking.

The chiefs are an endangered species and destined for extinction, whether we like it or not.

A chief in the old days was a servant of his people. He would feed his people first and make sure that everyone was full before he ate. It was much like the talatala of early christianity who walked over hills and valleys for the people.

Today, the roles have reversed and this is the reason of their downfall.

When Fijians struggle to survive today, they will have little care who their chief is, for after all, a chief will not put food on the table.

Isireli Biumaitotoya
Nadi


The reactions to the initial Fiji Times story, that celebrated GCC's return and reactions posted to Fiji Times website acquired many posters having the same thread of disdain with the GCC .

Confusion reigns

Monday, August 06, 2007

Withdrawal of the suspension order on the Great Council of Chiefs membership on Thursday stunned many.

More importantly, it had served as a beacon of hope that no matter the extent of differences the interim Cabinet held, they were not as hardlined as they appeared to be and were courageous enough to admit where they had made a blunder.

But whatever sense of hope or comfort gained from Thursday's development yesterday turned out to be misplaced. The public's disappointment cannot be as great as that of Great Council of Chiefs chairman Ratu Ovini Bokini and his team.

They are understandably confused at interim Fijian Affairs Minister Ratu Epeli Ganilau's reproof that members have not been reinstated. So how is it possible that such a misunderstanding, if that is what it is, has eventuated on an issue of such national importance.

After all, Ratu Ovini said Ratu Epeli had personally confirmed this to him. He says the former military commander had assured that the membership was intact. But Ratu Epeli says the recent regulation is misunderstood because it was only aimed at reinstating the council as an institution.

To this, the GCC's legal eagles are saying that the earlier regulation had only effected a suspension of the membership. For apparently, the initial regulation did not seek to make the institution defunct because this was not possible.

Such a move would have required a constitutional amendment and without an elected Parliament, this was impossible unless the Constitution was abrogated. Now Ratu Ovini and his team have to consider pursuing legal redress, again.

While the translation of the recent gazette would likely be argued, the validity of Ratu Epeli's directives in general would be the council's best bet. Once again, the State's manpower and already strained resources will be directed at fighting a losing battle in court.

It is a battle already lost because no matter how eloquent and impressive the State presents its arguments, nothing can change the facts of how the interim Cabinet came to be. Ratu Epeli says much will be explained after the interim Cabinet's meeting tomorrow.

Let's hope that his statements tomorrow will make sense of this bewildering situation, rather than add to the confusion.



In a Fiji Live article, Interim Fijian Affairs Minister announced that the GCC is not independent of Government.

This is an excerpt of the article:

Regime to spell out GCC future
Sunday August 05, 2007

Fiji's Great Council of Chiefs may not regain full control of its operations yet although its suspension was lifted by the interim Government this week.

Interim Fijian Affairs Minister Ratu Epeli Ganilau said there was no condition set when the GCC agreed to withdraw its court case against the interim Government on Friday following its reinstatement by the regime.

"The decision by the court was unconditional. The Government will decide on those conditions, not the GCC. The GCC is not independent and is an arm of Government."

GCC chairman Ratu Ovini Bokini said the GCC understood that the revocation of the suspension will cease any more amendments to the GCC's governing legislation until a new government has been democratically elected in accordance with the provisions of the current Constitution.

However, Ratu Epeli said he will elaborate on the conditions on Monday. He adds the GCC is there to look after the rights of the indigenous people and "not to make decisions for Government".

The chiefs also expect the regime to reinstate the previous administrative arrangements for the support of the GCC. This would require the interim Government to preserve the substantial independence and functioning of the GCC and to finance the operation of the GCC, said Ratu Ovini.





Subsequent to the news of the rescinded GCC suspension order, the deposed GCC members began organizing plans for an impromptu meet in Bau, as an alternative venue; an offer which one GCC member later denied making.

Meanwhile, Interim Prime Minister has made it clear in another Fiji Live article that, the GCC meeting will be arranged, once the Government gives official clearance.

This is the excerpt of the article:

Govt will not acknowledge GCC meet: Voreqe
Sunday August 05, 2007

Fiji’s interim Prime Minister Commodore Voreqe Bainimarama says the Great Council of Chiefs meetings will first have to be sanctioned by the Government.

Bainimarama told Fiji Live the last thing they want is to put economic pressure on the people of Tailevu since the Bose Ko Viti is coming up.

“The meeting has to be sanctioned by Government. They are not above Government,” he said.

Interim Fijian Affairs Minister Ratu Epeli Ganilau also stressed yesterday that the planned GCC meeting in Bau next week will not be recognised by the interim administration.

Ratu Epeli Ganilau said the Government has not given its approval for the meeting. GCC chairman Ratu Ovini Bokini could not be reached for comment but had said that the invitation from Bau chief Ratu Epenisa Cakobau for the GCC to meet in Bau is an informal one.

He said Ratu Epenisa, in his capacity as a chief, is offering the GCC members to go to Bau next week to discuss issues regarding the chiefly body.

The Tui Tavua added that Burebasaga high chief Ro Teimumu Kepa has also invited the GCC to meet next week in Lomanikoro in Rewa. Ratu Epenisa however said he made no such invitation.

Fijilive





It is now certain that, the Bokini's ambition to discuss the vacant position of Vice-President, is being left to simmer on the back burner; while Bokini's own tenure at the helm of GCC takes precedence.

Fiji Village article reports that, Interim Minister has suggested that there will be a new Chairperson appointed later, after emphatically pointing out that, Ratu Ovini Bokini no longer is considered as the Chair.


GCC VP appointment needs to be resolved urgently

Member of the Great Council of Chiefs, Tui Tavua Ratu Ovini Bokini say the appointment of the Vice President is a major issue which the council needs to urgently resolve.

However Ratu Epeli Ganilau said as far as the interim administration is concerned, Ratu Ovini Bokini is no longer the Chair and the member should wait for the next meeting sanctioned by the ministry to make the new appointments.

Ratu Epeli said the planned GCC meeting in Bau next week will not be recognised by the interim government.

In an exclusive interview with Legend FM news this afternoon, Ratu Bokini said that the issues regarding the appointment of the Vice President was one of the main reasons why GCC members were suspended by the interim administration.

Ratu Ovini said some GCC members will be meeting tomorrow to discuss the matter before consulting Interim Fijian Affairs Minister Ratu Epeli Ganilau in good faith to sanction an official GCC meeting and allow the council to resolve the issue. Meanwhile, the Tavua High chief still maintains that he is still the Chairman of the GCC.












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Thursday, August 02, 2007

The Whole Nine Yards - US Foreign Policy in Fiji.



The US House of Congress Sub-Committee on Foreign Affairs, chaired by the Democratic Gentleman from American Samoan, Honorable Eni F.H. Faleomavaega recently held a hearing named: The Impact of Section 508 Sanctions on Thailand and Fiji: Helpful or Harmful to U.S Relations?. Faleomavaega opened the meeting with a comparison of Pakistan with Fiji, in terms of sanctions and also continued to reiterate that aspect, as a counter-point to the State Department's own perspective on the issue.

Although, Glyn Davies of the State Department's Bureau of East Asian & Pacific Affairs, raised the concept of Fiji & Thailand being cajoled in returning to democracy; Davies and the US State Department ignores Pakistan's 6 years of dictatorship under General Musharraf because it suits their global interest.

The calls for Pakistan's return to democracy seems to have fallen on deaf ears in the US State Department, judging from their blatant double standards especially when US exports latest F-16 fighter jets to Pakistan and plans to diversify their exports to Saudi Arabia with more modern weapon systems, reported by an article in THE HILL which is currently receiving bi-partisan opposition in the US House.

Congressman Mark Steven Kirk, when describing Fiji's situation, used hyperbole liberally and callously declared that, "Fiji was competing with North Korea, for the worst economy in the Asia Pacific region".

Ironically, Kirk's House voting record has been tainted with questionable choices. Among the most recent, Kirk voted against H Amdt #378 the description:

H.AMDT.378 (A028)
Amends: H.R.2764
Sponsor: Rep McGovern, James P. [MA-3] (offered 6/21/2007)

AMENDMENT DESCRIPTION:
An amendment to prohibit use of funds for programs at the Western Hemisphere Institute for Security Cooperation(formally School of the Americas)located at Fort Benning, Georgia.

AMENDMENT PURPOSE:
An amendment to prohibit use of funds for programs at the Western Hemisphere Institute for Security Cooperation (formally School of the Americas) located at Fort Benning, Georgia.


Obviously the School of the Americas needs no introduction in the minds of people familar with their role in Latin America.



The video source on the hearing.

The transcript excerpt:


Statement of Glyn T. Davies
Deputy Assistant Secretary of State
Bureau of East Asian and Pacific Affairs


Before the House Committee on Foreign Affairs
Subcommittee on Asia, the Pacific, and the Global Environment

August 1, 2007

The Impact of Coup-Related Sanctions on Thailand and Fiji: Helpful or Harmful to U.S. Relations?


Mr. Chairman, Ranking Member Manzullo, and Members of the Subcommittee, like my colleague Deputy Assistant Secretary John, I would like to thank you for the opportunity to testify before you today. In my case, I will briefly address Fiji and the impact of Section 508 sanctions on that country.

Traditionally, Fiji has been a close and valued U.S. ally in the Pacific. It has a long history of contributing troops to multilateral peacekeeping missions, including those in Lebanon, the Sinai, the Solomon Islands, Kuwait and East Timor. Fiji was quick to condemn the September 11th terrorist attacks on the United States and has been a staunch supporter of our efforts to build an international coalition against global terrorism.

The military coup of December 2006 leading to the overthrow of the lawfully elected government of Fiji has strained our relationship. Unlike in the case of Thailand, Fiji’s coup leaders have taken no credible steps to quickly restore democratic rule, other than a vague promise to hold elections in 2009.

The United States responded to the Fiji coup by publicly denouncing the military’s actions and imposing a number of sanctions, including a cessation of military and other assistance to the Government of Fiji in accordance with Section 508 of the Foreign Operations Appropriations Act, visa bans against coup leaders, suspension of lethal military sales, and restrictions on bilateral engagement. Australia, New Zealand and the EU have authorized similar sanctions.

We are working to ensure that a legitimate government is restored in Fiji. The United States supports the initiative by the Pacific Islands Forum to help Fiji return to democracy at an early date. The U.S. has consistently called for the immediate restoration of human rights protections and civil liberties, and early elections.

I would like to emphasize that our sanctions are targeted against the coup government. The United States, however, continues to provide assistance to the people of Fiji. For example, the Department of State approved a $25,000 grant to support a program designed to strengthen Fiji’s democratic traditions. We are also looking at ways in which we might provide assistance to Fiji in support of a return to democracy, including by supporting early elections.

Fiji continues to participate in UN and multilateral peacekeeping operations, including the UN Assistance Mission to Iraq (where Fiji troops provide security for UN headquarters). Although the United States decided that it will not impede Fiji’s continued participation in ongoing deployments, we have made clear to the interim government, and announced publicly, that we will not support any new military deployments absent measurable progress in returning Fiji to democratic rule. Moreover, legally mandated restrictions on U.S. military assistance to Fiji preclude the United States from providing training, equipment, and other material support to the Republic of Fiji Military Forces to assist any overseas missions until a democratically elected government has taken office.

The U.S. announced sanctions against Fiji on December 5, 2006. Since then progress toward democracy has been unsatisfactory. However the interim government has said that it supports “in principle” the recent Pacific Islands Forum-Fiji Joint Working Group report stating that elections could be held by March 2009 or even as early as November 2008 if the international community provided assistance to help prepare for elections.

The U.S. is willing to support the interim government in this effort if the interim government takes concrete steps to hold elections according to the Forum-endorsed timetable.

We continue to maintain full diplomatic relations with Fiji and have made exceptions to our visa restrictions to allow senior officials of the Fiji government to come to Washington to meet with U.S. counterparts. We believe that sanctions offer the clearest message that restoration of military assistance and closer relations between the U.S. and Fiji can only resume when democracy returns to that country.

Thank you Mr. Chairman. I would be happy to answer any questions you might have.


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Wednesday, August 01, 2007

Fiji Media Inquiry Welcomed By All, But the Owners. (Updated)



"Freedom of the press is limited to those who own one."
A. J. Liebling (1904 - 1963)




Fiji Media Council Chairman, wrote a letter to the Editor of the Fiji Daily Post and published on their website.

This is the excerpt:

FLP and the media
1-Aug-2007

Sir,

IT is sad day for Fiji when the President of a leading political party, and one that shares power with the government of the day, calls for legislation to regulate one of our fundamental freedoms - freedom of the media. For government to control the way the media operates is tantamount to putting restrictions on one of the people’s other essential freedoms - freedom of speech and expression.

If the Fiji Labour Party truly espouses democracy, it should know that in a democratic state the media is not controlled by restrictive legislation. No media is totally free. While freedom is guaranteed in our Constitution there are many specific restrictions.

It is extremely disturbing that our political leaders should be reverting to thinking like the leaders of the communist era. I am sure that it is not the party’s intention that Fiji should end up like the former Soviet state or like Zimbabwe.

But that could be the end result if they introduced legislative controls over the media. The media would be forced to conform to the will of any government of the day. It would not be allowed to publish criticism of the government.

It would have to publish government’s propaganda. One wonders what would happen to the commercial viability of the media organisations. And let us not forget that two of the current media organisations are public listed companies that are owned by the people of the nation.



Daryl Tarte,
Chairman
Media Council (Fiji) Ltd.


It is rather amusing to see that, Daryl Tarte has resorted to emotional appeal to further his outrageous cause. Tarte's claim that, since two media companies are publicly traded on the South Pacific Stock Exchange(SPSE) means these companies belong to all Fiji citizens makes him a laughing stock; especially when considering he is also the Chairperson of CMDA.

Would Tarte back up his statement, by showing the actual Share Certificates from these two companies, listing all Fiji citizens as joint stock owners. Sadly, lip service and rhetoric has always been the Modus Operandi for the media cartel in Fiji.

Fiji Ombudsman has announced a local consultant in a Fiji Times article, as the head of the Media Inquiry project as well as, outlining the overwhelming support for the inquiry from the community at large.
This is the excerpt:


Local to lead media inquiry

Wednesday, August 01, 2007

A LOCAL consultant has been engaged to carry out an inquiry into concerns of human rights violation in the media industry.

Fiji Ombudsman, Doctor Shaista Shameem said the identity of the consultant would be announced today when consultations begin. Dr Shameem said interest had poured in from hundreds of people including the international media who supported the inquiry.

"They talk about media freedom but where is the freedom of the journalists to express themselves. It's a contradiction."


"We even have journalists from media organisations that have opposed the inquiry," she said last night. Submissions are expected not only from journalists, but the public, unionists, civil servants and non-government organisations who, Dr Shameem said, have "all welcomed" the inquiry. Of the four media organisations that have indicated lack of participation into the inquiry, Dr Shameem said "the worst thing is that they prohibit their staff from making submissions".

"We have journalists from these organisations who have been told not to participate in the inquiry and if they do, they need the full authority of their bosses," she said.


All four media organisations, including The Fiji Times, have denied the allegations and say their staff are free to take part in the inquiry if they wish. The organisations said they had not refused to take part but had simply asked for further information and consultation on the terms of reference.

The date of submissions has been extended to August 10 to enable the consultant, who has technical support and Hansard reporters assisting him, time to cater to the large number of submissions that are expected.

Fiji Media Council chairman Daryl Tarte said he was appalled at the commission's stance not to identify the consultant.

Dr Shameem said it was no secret and this was owed to the fact that there were a number of applicants who were not advised of the successful applicant's name. "Why should it matter to him who the consultant is," Dr Shameem asked.

"The council has an agenda it seems. I regret Mr Tarte's point of view. Beats my comprehension why they're making a big song and dance about this.

"If the organisations don't want anything to do with the inquiry, they shouldn't stop their journalists," Dr Shameem said.


Mr Tarte said the commission had failed to consult the council members and stakeholders over the inquiry.

He said some members of the industry had expressed concern over a number of issues which remained unresolved and until they were resolved, the council's position on the inquiry would remain unchanged.

Dr Shameem said the commission was an independent body with its own mandate, duties and responsibilities and did not need to consult prior to the inquiry.

"The terms of reference were clear. It was advertised and sent to all media organisations and journalists. Do they want to override everything?" "I rang up a public member of the council after The Fiji Times ran a story against the inquiry.

"He said he didn't know anything about the decision of the council so I told him to consult with his members and find out.


Dr Shameem said she would not be involved in the inquiry and neither would her staff. Mr Tarte is expected to issue a statement today.


Dr Shameem may have inadvertently exposed the lack of transparency in the decision making process within the Fiji Media Council (FMC). It appears that the cartel of four largest media companies have dominated the FMC to such an extent that, it has become more of a proxy office responding only to the concerns of the cartel and failing to consult with the community appointed members; who appear to be just token members with little influence to control the direction and policies of FMC.

In a Fiji TV news segment, the heads of the four largest media companies backpedaled from their grandstanding threat of not participating in the inquiry, stating that they were just waiting for the terms of reference and the naming of the incumbent head to the Media Inquiry.

Meanwhile, the Radio Fiji news article actually names the incumbent.

This is the excerpt:

Dr James Anthony appointed to conduct Media Inquiry
Wednesday, August 01, 2007

Dr JAMES Anothny has been appointed by the Fiji Human Rights Commission to conduct the media Inquiry.

The inquiry is based on the requirements of Article 19 of the Universal Declaration of Human Rights and other human rights instruments protecting and promoting freedom and independence of the media.

The Terms of Reference of the Inquiry is to provide an overview of the range of media available in Fiji including ownership and scope of operations.

It will also review the freedom and independence of the media and assess Fiji’s compliance with them and other issues.

The inquiry is an update of a report given by Dr. Shaista Shameem to the international NGO Article 19 in 1987.




Fiji media cartel of 4, responded to Dr. Shameem's remarks in an article by the Fiji Times and a Fiji Village article. Communications Fiji Ltd owner, William Parkinson, who asked for the terms of reference for the Media Inquiry on the Fiji Village article soundbite. Parkinson's response seems more of a flimsy explanation to the flip-flopping objection raised days earlier, by labeling this inquiry as biased.

Although, considered by many as long overdue, this media inquiry in Fiji comes at the unique time, when Fiji Times parent company News Corp, the flag ship company of Rupert Murdoch, just purchased the Dow Jones company and business daily, Wall Street Journal reported by an article by Wired. Incidentally, this resistance to the Media Inquiry in Fiji, would be a skirmish followed with much interest, even by Rupert himself.



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Saturday, July 28, 2007

Mahogany in Fiji-Growing Weary?

Fiji Buzz article uncovers the depth of in-grown problems surrounding the issue of Mahogany plantations in Fiji.

This is the excerpt of Fiji Buzz article:

Exposé: Fiji's Mahogany Forests
Written by Wendell Archibald

Mahogany Fiji

[Right Image: Typical Mahogany Forest in Fiji]


Exotic forests are not a new phenomenon and in the parts of the world where they do exist forest harvesting scarcely gives rise to difficulty.


This is not the case in Fiji. There are about 40,000 hectares of native land in Fiji which has been planted in mahogany. These forests are the result of an afforestation initiative led by the British Colonial government in the 1950's.

In the course of implementing the scheme the Colonial government put leasing arrangements in place over the native land concerned. The leases were to the government for 99 year period at a rental of sixpence per acre (13c per hectare).

The land rentals were of course adjusted periodically for inflation so that by the new millennium the return to the land owners was in the region of $2.00 per hectare.

Stumpage

In a modern tree or timber “crop lease” provisions exist whereby the owners of the land are to be paid “stumpage” when time arrives for crop harvest. The stumpage payments are normally calculated on the basis of the metric volume of timber taken from each tree stump.

Some leases, put in place by large public companies, have been known to contain provisions for stumpage to be paid in advance of the harvest date. In these cases the basis for payment is a periodic assessment made as to the current value of the trees growing in the ground. The “mahogany leases” by the Fijian landowners to Government contained no such provisions.


The Resource Grab

As harvest time approached, the current value of the mahogany tree crop became evident. A row of enormous proportions then began to fester between the landowners and the Government.

The row had all the hallmarks of a shameless struggle to obtain ownership and control of an economic resource. Neither side has emerged from the argument with credit.

On the one hand the land owners claimed the reward from the mahogany harvest was theirs. Government's position was that they owned the leases and therefore the right to the crop.

Despite the existence of locally owned and operated wood processing capacity both sides contended that they needed an overseas investor to help them maximise the value of the timber. Both sides then proceeded to negotiate with interested overseas parties.

By the 1999 elections the Rabuka Government had established a Government owned entity called Fiji Hardwood Corporation to manage its “mahogany interests.” George Speight, who had been appointed its Chairman, had begun to make firm 'Investor” arrangements with an American company. Something called “Fiji Mahogany Unit Trust” was also registered overseas but locally its details were never revealed.

It is well documented how the Chaudhary Government following the 1999 elections queered the pitch by contracting in a British “investor.” In some quarters it was openly stated that the disruption so caused to George Speight's plans formed the real reason for the coup of 19 May 2000.

The Suva headquarters of Hardwood Corporation were razed to the ground by fire during the course of the 2000 coup.

The Qarase Government

The Qarase Government came to effective power in July 2000, as the interim government appointed by the Commander of the Fiji Military Force. One of the persons appointed was Apisai Tora who took office as the Minister of Agriculture.


The appointment was surprising in that on 19 May 2000 it was Apisai Tora who had led the protest march which preceeded the overthrow of the Chaudhary government. He was also well known as one the protagonists and architects of the 1987 coup led by Sitiveni Rabuka.

With an election scheduled for September 2001 the new government which was later to be reformed as the “SDL party” immediately announced a “blueprint” whereby soft loans were to be provided to indigenous Fijians for the formation of businesses.


With the benefit of hindsight it now seems that funds were needed by the interim government for electioneering purposes and direct handouts designed to curry favour with the indigeneous Fijian electorate.


When the Fiji Development Bank proved slow to respond Tora immediately proceeded to bail out the Treasury by using funds at the disposal of the Department of Agriculture for such purposes. The move was a resounding success resulting in the September 2001 election of SDL to the treasury benches under the leadership of Qarase.



Some 63 months after the event Tora's permanent secretary Peniasi Kunatuba was jailed for his part in the affair. Tora and his cohorts have never been charged.

The Fiji Mahogany Act

In its first term of office the Qarase led government revitalised Fiji Hardwood Corporation by injecting $3.5 million (FJD) into the company as working capital, installing a new board of its own choosing and an ex-patriate Chief Executive Officer.



A former Chairman of Fiji Development Bank (FDB) numbered among the directors. He used his influence with FDB to obtain finance for the acquisition of the wood-working machinery of a small/medium sized wood processing plant which the High Court in Suva had wound up in April 2003.

By 15 July 2003 the Government had introduced a bill called the 'Fiji Mahogany Act' into Parliament. It was passed into law on 6th November 2003.

The preamble to the Act states it is :

“An act to make provision for the development of the mahogany industry in Fiji including harvesting and processing to allow landowners participation in the industry and for related matters”



The text of the Act does not reveal the the manner by which its objectives are to be achieved. The real purpose of the Act seems to be contained in section 3 which is an empowering provision allowing Government to inject public funds into Hardwood Corporation.


The Fiji Mahogany Trust

Otherwise section 4, and the remainder of the Act concerns the establishment of a trust called the “Fiji Mahogany Trust”
A peculiarity is that in law, there are three elements which must be present before a trust can be said to exist. These are that there must be

1. at least one beneficiary (or cestuis que trust);
2. some defined property which is the subject of the trust; and
3. a trustee who is obliged to deal with the property for the benefit of the cestuis que trust.


With the Fiji Mahogany Trust none of the required elements of a trust are able to be discerned..

Processing in the West

Shortly after the Fiji Mahogany Act was passed the wood processing plant which had been purchased with FDB assistance was moved westwards on Viti Levu from Suva to Lautoka. There it began processing mahogany supplied by Fiji Hardwood Corporation.


In a short space of time the company was achieving exports of containerised dressed mahogany timber. According to certain members of the company's staff 6 containers were exported every week.

On the basis of these reports Fiji Hardwood Corporation should have been enjoying an income stream of at least $12 million (FJD) annually. In reality it ran out of funds before the end of 2005.

A new CEO for Hardwood Corporation was brought in mid 2006. He found the root cause of the company's problems to be “transfer pricing".

That is the timber exported was returning $400 (FJD) per cubic metre whereas the costs of production were far in excess of that amount. The profits on sales in the country of destination were not of course being repatriated to Fiji Hardwood Corporation.

The Police were informed but the previous holder of the CEO's office fled the country. An investigation was reported to have been commenced into the activities of the board members and staff of Hardwood Corporation who were involved.

When the health of the new CEO deteriorated 6 weeks ago the board of Fiji Hardwood Corporation took the opportunity to terminate his appointment (and presumably the Police enquiry).

In its 2006 budget the Qarase government voted that a further $5 million FJD of Public funds be injected into Fiji Hardwood Corporation.

RESOURCES: Fiji Mahogany Act 2003


Mahogany plantations misappropriation involve NLTB and has a connection with Qarase and the mysterious bail out of Fiji Hardwoods Corporation with funds sourced from Fiji Development Bank according to a Fiji Times article.

This is the excerpt:


$5.8m granted in mahogany bailout

Friday, December 22, 2006

FIJI Hardwood Corporation was granted $5.8million by the Laisenia Qarase-led government to bail itself out of debt.

This was confirmed by Fiji Hardwood chairman Winston Thompson yesterday.

He said the money was received from the Fiji Development Bank (FDB).

"Earlier arrangements were made by the government with the FDB about the issue and that is where it is at the moment," said Mr Thompson.

He said the corporation received the fund weeks ago and hoped to change its image.

Parliament had approved a government request to guarantee a $5.8million loan by Fiji Hardwood.

Ousted finance minister Ratu Jone Kubuabola approved the loan in February as the company experienced cash flow difficulty. In 2003, the government bailed the company with a $7million loan from Fiji National Provident Fund.

Mr Thompson said he was aware of roadblocks in Tailevu by two landowning units claiming compensation.

The mataqali Rara of Naimasimasi Village in Tailevu wants back the land because according to them, it was reserved for them by their forefathers.

Clan spokesman Jovilisi Kedrayate said Fiji Hardwood needed to return 38 acres of land where the company planted mahogany without permission.

Lawyer Tevita Fa said his clients would not change their stand on the decision.

The land is part of an 86-acre spread of which Fiji Hardwood has a lease on 48 acres.


All this talk about Mahogany is perhaps an extension to the infamous Wall Street Journal article published on September 13th 2000, regarding Mahogany negotiations involving the pre 2000 coup dealings with George Speight, the former Executive of Fiji Hardwood Corporation and subsequent convicted coup leader.

This is an excerpt:

Fiji Mahogany Incites Lawsuits,
Resource Battle in Troubled Region

By ROBERT FRANK
Staff Reporter of THE WALL STREET JOURNAL
September 13, 2000

SUVA, Fiji --



On a mountainside deep in the jungle of Viti Levu, Fiji's principal island, Alisi Marama digs for one of the world's most coveted commodities.



"This is what everyone is fighting over," says the 52-year-old prawn farmer's wife, holding up a mahogany sapling. "We never knew these trees were worth so much money."

Fijians call them "white people's trees." On plantations started by the British, the tall, gray trunks rise from the jungle in neatly planted rows, covering more than 80,000 acres. To logging companies, they're "king mahogany," used in everything from boardroom paneling and yacht decks to furniture. Through a strange confluence of history, geography and an environmental movement thousands of miles away, Fiji's mahogany farms, believed to be the world's largest, have placed this remote archipelago at the center of a global business storm.





What began as a bidding competition for timber rights between a U.S. company and a British firm has come to involve government officials from the two countries, as well as Price Waterhouse Coopers, a Seattle entrepreneur and a former timber executive named George Speight, who staged a coup against Fiji's government in May. Billions of dollars are at stake and lawsuits are flying from Suva to Seattle.

Waves of Unrest

The coup, which battered the South Pacific's most promising economy and set off waves of unrest throughout the region, also has links to mahogany. Weeks before the attack, protests were mounting against the government for its decision to accept the British company's lower bid and for its treatment of landowners. Leading the charge was Mr. Speight, who had been ousted by the government from a top timber job and who had received consulting payments from the U.S. company that lost the bid. Three days before he stormed Fiji's Parliament, the coup leader took out a dramatic advertisement in a local newspaper stating that he was "not on the take" from the U.S. company.

Fijian police have set up a special unit to investigate the mahogany deal, and a former police chief, Isikia Savua, said last week that there are "possibilities of linkages" between the mahogany and the coup. Whatever the investigation reveals, Fiji's mahogany trees are likely to kindle even more unrest, as tribal chiefs, giant timber companies, government agencies and even rural farmers begin staking claims.



"We have this asset that people learn has tremendous value," says Charlie Walker, a timber executive and former Fijian congressman and diplomat. "I'm afraid that unless we get a solution that's agreeable to Fijians, it's going to create more instability."

Other issues have contributed to regional turmoil, such as land rights, ethnic strife and widespread corruption, but at the heart of the violence are battles over natural resources such as oil, natural gas, gold and timber. A struggle between rival tribes over land in the Solomon Islands has sparked an attempted coup and widespread killings and kidnappings. Papua New Guinea continues to fight with Bougainville separatists over minerals, while the French are battling native Melanesians in New Caledonia over nickel. As colonial influence and financial aid recedes in the region, Fiji's lucrative mahogany trees are becoming the next explosive commodity.






In the early 1900s, as part of a global forestry experiment, the British government shipped a bundle of mahogany seedlings to Fiji from the rain forests of British Honduras, which is now Belize. The aim was to expand the economy of the Britain outpost in the South Pacific and create a new source of mahogany for British furniture makers. The seedlings flourished, and in the 1960s the Fiji government started regular plantings to ensure a steady crop.

The trees grew largely unnoticed until the late 1990s, when several factors put them on the world stage. Most of the world's mahogany, sold mainly to the U.S. and Britain, comes from the rain forests of South America, primarily Brazil. With overlogging and growing pressure from the environmental movement, timber companies were suddenly forced to look for "green" alternatives.

Enter Fiji. More than 2,000 miles from the nearest continent, Australia, the group of 300 tropical islands is far removed from the insects that plague mahogany in other countries, specifically a type of shoot borer that cripples young trees. With its steamy climate and volcanic soil, Fiji is the only place where mahogany plantations have taken hold on such a large scale. Analysts say the country could supply up to two-thirds of world demand within the next 10 years, yielding between $50 million and $200 million a year in revenue and offering a new source of growth for the tourism-based economy. Since the trees grow on plantations, rather than wild in forests, they're considered ecologically correct.

In 1998, as overseas interest grew, the government hired Price Waterhouse -- now PricewaterhouseCoopers -- to search for a foreign logging partner. Bidders were asked to take a stake in the state-owned mahogany company, Fiji Hardwood Corp., and to help build the roads, sawmills and sanding and furniture plants needed to process the wood. Within weeks, Price Waterhouse had narrowed a list of six candidates to two finalists: Britain's Commonwealth Development Corp. and the American-led Timber Resource Management.

CDC, an investment company owned by the British government, offered $68 million for the stake and certain cutting rights -- a sum many in the Fijian government considered far too low. TRM, a newly created consortium led by Marshall W. Pettit, a businessman based in Bellevue, Wash., entered a bid of $110 million. The deal involved a complicated bond offering, a Cayman Islands holding company and millions of dollars in banking and transaction fees. TRM is 65%-owned by Washington-based Anglo-Pacific Resources, which is controlled by Mr. Pettit, a financier who has interests in real estate and natural-resource projects. The remainder of TRM is held by various New Zealand and Australian timber companies.

'We Were Terminated'

After weeks of analysis, Price Waterhouse recommended CDC, saying the company was more established than TRM and would provide more direct benefits to Fiji. For reasons still under dispute, the government challenged the recommendation. In a crowded conference room in February 1999, government ministers cut short Price Waterhouse's presentation and fired the company, saying they could handle the mahogany deal themselves.

"We were terminated at the meeting," says Gary Butler, Price Waterhouse's lead manager on the project.

With the government taking over the deal, a new player emerged in the talks: Mr. Speight. A Fijian insurance executive with a flair for sales, an M.B.A. from Andrews University in Michigan and close ties to the government, Mr. Speight was chairman of Fiji Hardwood Corp. and a leading member of the government's mahogany steering committee. At the meeting with Price Waterhouse, Mr. Speight led the attack on CDC's proposal and charged that the bid "didn't meet the government's requirements."

Another Interest

Mr. Speight, however, had another interest. In the spring of 1999, just after the February meeting, Anglo-Pacific Funding wired two payments of $5,000 each to Mr. Speight's Australian bank account, according to bank statements. Anglo-Pacific Funding is also controlled by Mr. Pettit. When the payments were disclosed on a Fiji television program just before the coup this past May, the news unleashed allegations of influence peddling and corruption in Fiji's press.

Both Mr. Pettit and Mr. Speight confirm the payments, but say they weren't related to the mahogany deal. Mr. Pettit says the fees were for office space and insurance-consulting work that Mr. Speight performed for Anglo-Pacific in 1997 and 1998 -- well before the mahogany talks began -- as part of a pine-logging deal that was later canceled. Mr. Pettit says he thought the payments were being made to an insurance company managed by Mr. Speight, not to Mr. Speight's personal account. Mr. Pettit adds that he knew nothing about Mr. Speight's coup, and that allegations of influence peddling were manufactured by Mr. Speight's political rivals.

"George Speight didn't do us any favors," Mr. Pettit says. He notes that the association with Mr. Speight worked against TRM during negotiations, "since other people involved were in effect constantly inferring that Mr. Speight was carrying our banner."

In an advertisement in a Fiji newspaper just three days before the coup, Mr. Speight stated that he was "not on the take" from TRM and that he had acted during the mahogany negotiations "in a responsible manner with absolute integrity." Neither Mr. Speight nor his attorney could be reached for comment on the mahogany deal.

Timber Talks Reopened

Mr. Speight's influence, however, was overshadowed by larger events in May 1999, when Fiji elected a new government and Mr. Speight was swept out of his timber positions. The new government, led by Prime Minister Mahendra Chaudhry, launched a widespread investigation into fraud and corruption and reopened the mahogany talks. In July 1999, Mr. Chaudhry settled on CDC, stating in a letter to CDC that the British company was the "preferred bidder" and that the government "wishes to proceed to complete the negotiations." The letter's existence, however, didn't emerge until months later.

TRM, meanwhile, continued to pursue its bid, having spent more than $2 million on legal fees and other deal-related costs. Mr. Pettit and Fahnestock & Co., a New York-based securities firm that was organizing the bond involved in TRM's bid, arranged to fly four Fijian government ministers to New York last September in a final push to promote the bid. Since the Foreign Corrupt Practices Act prevented TRM from paying for the trip, the U.S. Trade and Development Agency agreed to be the sponsor. The agency paid $25,000 in air fare, hotel and travel costs for the ministers.

Months after the delegation returned home, TRM learned of the July 1999 letter and the Fijian government's commitment to CDC. Mr. Pettit and the U.S. ambassador in Fiji, Osman Siddique, were furious, charging that the Fiji government had accepted the trip in bad faith and wasted U.S. taxpayers's money. "We feel thoroughly taken advantage of," Mr. Pettit says.


This past April, Mr. Siddique charged into Prime Minister Chaudhry's office and said: "No more excuses. You can do what you want with your f---ing forest."

Mr. Siddique, a travel-agency owner from Virginia, confirms the account and adds that he was simply supporting the commercial interests of a U.S. company.



'A Slap in the Face'

As the deal slipped away, TRM turned to lawsuits. The company has filed nine suits in Fiji -- four against a former consultant and a former equity holder, two against the government and three against various Fiji newspapers and newspaper columnists, because of what Mr. Pettit says were libelous and false reports about TRM and the company's bid. The reports, earlier this year, questioned the reputation of TRM and detailed the payments that TRM would receive from the mahogany deal in addition to conventional revenue.

"All I want is an apology," says Mr. Pettit, adding: "We were trying to do something good for the people of Fiji, and all we got were lies and a slap in the face."

Mr. Speight has his own legal troubles. Imprisoned on an island off Suva, he faces charges of treason for leading the May coup, in which he and 16 other rebels took the entire government hostage and then turned the country over to the military.

With Fiji's economy in crisis, the mahogany trees are becoming even more important -- and controversial. Entomologists at a forestry station outside Suva have received reports of a population of mahogany shoot borers on the island of Espiritu Santo, about 900 miles away.

Meanwhile, Fiji landowners are staging protests in a bid to take back the trees -- which are growing on land largely owned by local tribes but leased by the government -- while several government agencies are also staking claims. TRM and CDC both vow to continue fighting for a deal, and several new competitors from Europe and Canada have also approached the government and landowners.

"We took care of these trees all our lives," says Mrs. Marama, standing at the edge of a lush mahogany plantation on land owned by her tribe. "Now we want something in return."

Write to Robert Frank at robert.frank@wsj.com


The negotiations for the same Mahogany plantations continued after the 2000 coup with Interim Prime Minister playing a leading role; which landowners feel weary of, as an article in Pacific Magazine outlines.

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Friday, July 27, 2007

Fiji Media Resists Oversight.



Following up
on an earlier S.i.F.M post on Fiji Media; the proposed inquiry into Fiji's media as reported by Stuff article, was scuttled by a combination of factors which include clash of schedules for the New Zealand consultant reported by a Fiji Times article corroborated by Dominion Post and predictable belligerence by the cartel of leading media outlets in Fiji.


Kiwi pulls out of media inquiry

Friday, July 27, 2007

A New Zealand consultant approached by the Fiji Human Rights Commission to conduct an inquiry into the extent of media freedom and independence in Fiji has indicated his unavailability.

Greg Fortuin was one of the individuals approached by the commission to help the commission in identifying ways in which it could promote media freedom and independence in the interest of the public and the profession.

Commission director Doctor Shaista Shameem said Mr Fortuin had indicated he had a personal commitment in Australia during the period they needed him.

She said they needed the inquiry to get underway next month.

Mr Fortuin is only one of the people on a list. We hope to engage another person from New Zealand. The inquiry is going ahead, she said.







Fiji TV news segment had aired footage of correspondence signed by the heads of Fiji TV, Fiji Times, Fiji Sun and Communications Fiji respectively. This marks yet another entrenched turf defense by this media cartel, who have escaped any independent assessment for years. It is this cartel who control the Fiji Media Council and have always resisted outside scrutiny into their empire.

Fiji has seen the dangers of media disinformation leading up to the 2000 coup, as well as the slanted editorial opinions and selective coverage. What is really disturbing, that this media cartel has labeled this inquiry on Fiji TV, as "selective" and highlighting a hypothetical risk that, Fiji Human Rights Commission could "invoke causes of Human Rights to control the media", according to the Fiji TV report.

How can the media be in an impartial position, when elements within itself is resisting any resemblance of oversight?


Unfortunately, this media cartel have often used the fear of control to wriggle itself from any independent review of their operations. This 'Red Herring' is designed to obfuscate attention from the putrid state of affairs in the news room. Fiji deserves a free-press and holding them accountable makes the industry more dynamic and independent of gate-keeping by the media owners. Fiji will never quantify this component, if the media companies refuse to have checks and balances on their own affairs.


Sadly, the arrows of dictatorialism launched by the same media cartel at the Interim Government in Fiji, pales in significance to their own dogmatic principles.

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Thursday, July 26, 2007

Forging a New Direction in Native Administration?

In a follow up the S.i.F.M post on the debate on NLTB. There have been developments in NLTB; as a Fiji Live article outlines. Fiji Times article reports that the 3 boardmembers were on the Standing Committee which deliberated on the contract negotiations for MySAP software with Pacific Connex. Some reactions to this news story was posted on a Fiji blog- Hyde N Ceek.

Fiji Times article also covers a discourse on native administration, which was held in University of South Pacific (USP) and the speech circuit rider, Ratu Joni Madraiwiwi addressed the issues of leadership and change in Fiji.
This is the excerpt of Madraiwiwi's speech:


Accept changes: Chief

Friday, July 27, 2007


[Guest speakers, from left, Eci Nabalarua, Dr Wadan Narsey and Ratu Joni Madraiwiwi at the public lecture on organised by the Queen Victoria School Old Boys Association on Wednesday]

Indigenous Fijians should be more broad minded and accept changes, former Vice-President Ratu Joni Madraiwiwi believes.

Answering questions at a public lecture on Challenges facing indigenous leadership at the University of the South Pacific's lower campus on Wednesday night, he said Fijian leaders were reluctant to acknowledge changes happening around them and allow that to dismantle their traditional way of life.

Fijians have a responsibility to invite other communities to participate in a continuing dialogue about the values and the principles which they value, Ratu Joni said.

He said what was most pressing was articulating an inclusive vision for indigenous and non-indigenous people alike.

It must be one that embraces all the communities of this country and in which no one is made to feel they are an afterthought, as in the Fijians and the rest of the others. As the majority, it is not a contest or a competition.

To see it in those terms would be a futile exercise. It is seeking to build on what we have in common, in order to create a concept of nationhood and sovereignty that we can all share in as well as fitfully participate.

Ratu Joni said among Fijians, the economic imperative appears to have engulfed indigenous people to the exclusion of all else. I do not deny its importance and the profound effect it has in shaping the character of Fijian culture. However, I wonder whether we have reflected sufficiently on notions of Fijian identity, he said.

They are inextricably linked to the Fijian language and to the existence and survival of Fijian villages from which our social structure in a large part derives. Rural-urban migration for education and employment is a staple of modernising societies.

Fiji is no different.

Without sustained and creative approaches to reinvigorating both cultural icons, their decline would leave adverse implications for the manner in which Fijians regard themselves. Ratu Joni said the worry was the increasing prospect that a signification portion of Fijians in the villages may be caught in circumstances of poverty and disadvantage and aside from this was the redefining of notions of Fijian identity. Fijians have always responded to firm leadership. There remains a place for that quality in the present day. What is meant is not dictatorial in nature, he said.



Another interesting perspective was from local Economist, Dr. Waden Narsey appeared in Radio Fiji website, a view which the Fiji Times failed to cover.

This is the excerpt of Narsey's remarks:

Warden Narsey Questions the Role of GCC in helping their people
Thursday, July 26, 2007

Economist Dr. Wardan Narsey has questioned the role of the Great Council of Chiefs in helping their people who work overseas and remit money home.

Dr. Narsay told a panel discussion at the USP last night that individual chiefs and provinces may be helping, but not the GCC as an organization.

“Sound, timely guidance and assistance for their people of an opportunity in terms of earning income overseas. This has come up in the last five, six seven years as the largest foreign exchange earner for Fiji. Kind of things security guards, nurses, care givers, seasonal labor schemes and all that. Individual chiefs, individual provinces may be doing all kinds of things. But what has the GCC as an entity been doing about this very, very powerful avenue for improving the living standards of our people.”

Narsey said that remittances offer huge potential for the indigenous people, but the role of the Great Council in this area remains questionable.

“You read the household survey report that is put out by the Bureau of Stats, you will see that this remittance money goes throughout all our provinces, far more money going out there that in fact all, all the loans provide by all our commercial banks despite all their advertisements. So this is a massive area. What has the GCC been doing about this area?”


Other voices are now being raised, questioning the wisdom of the Great Council of Chiefs(GCC) new complex when compared to the poverty in the grassroots. Interesting enough, it took 6 years for Radike Qereqeretabua to speak out; since the GCC complex started under the SDL Government, a party which he was a sympathiser of and also Qereqerenatabua being a frequent invitee to the cocktail party circuit.


A monumental folly of our time

RADIKE QEREQERETABUA
Tuesday, July 24, 2007



Work continues at the GCC complex at Draiba near Nasova in Suva

Since the announcement by the ousted government of the approval to construct a $20million meeting venue for the GCC, a couple of years ago, I have been questioning the rationale and the wisdom of such a decision given the comparative disadvantaged position we Fijians find ourselves in today, in general terms.

The TV footage on the GCC complex tour by the PM on Sunday, July 8, has prompted me to voice my thoughts on the matter for what they are worth. The TV item said the complex will be opened later this year, and it will now cost $30million. Yes, $30m. Our chiefs, and top government officials are well aware of the grand expensive buildings that have been built around the country in the last few years for the specific purpose of hosting GCC meetings.

And we, the tax payers, have funded these buildings to the tune of millions of dollars. When this type of decisions are made by our Fijian chiefs, and Fijian-led governments, I wonder whether they are aware, I mean truly aware of the plight of the Fijians.

In the rural areas: The poor dilapidated villages; the hardships that Fijian women have to endure to get their root crops on Friday to the markets; the level of anxiety they suffer late Saturday afternoons when they sit on the hard concrete floors of the markets, faced with the prospect on taking their unsold bags of tavioka, and bundles of dalo back home, or give them away for nothing at close up time.

Hard work, sweat and hopes down the drain. Some of the women I interviewed at the markets travel on horse back for miles with their produce before they can reach rural roads where they can hire a vehicle to bring them to the market.

Most are just so disillusioned and disappointed at the lack of concern for them by Fijian authorities. For us from the outlying islands, life becomes harder and harder with the continuing increase in price of outboard motor fuel, to get us to Suva or Lautoka with our produce without an assured market which can guarantee us a fair profit.

What our disadvantaged rural Fijians need is an effective agency that buys produce from the village rara with hard cash. Our chiefs and Fijian government officials should be made duty bound to provide such an agency.

I say an "effective agency", since the National Marketing Authority had failed for whatever reason, and, I believe the newly formed Agro Marketing Authority (AMA) is failing since it is trying to muscle in on territories successfully serviced by established buyers instead of servicing neglected rural producers who desperately need assured markets.

The benefits of such a scheme are manifold: It should help attract Fijians with idle land to return to their villages to make productive use of them in the knowledge that a reliable agency is going to buy the results of their labour at the end of the day; it will reduce the squatter population in the urban areas thus freeing government (and taxpayers) funds to cater to other legitimate, pressing needs.

But the most important benefit would be in the restoration of self-esteem and national pride values that are fast becoming increasingly lost in Fijians today hence the increasing incidence of assault on persons and property, and the high Fijian prison population today.

In the urban scene, I wonder whether our chiefs and our Fijian government leaders are aware, I mean truly aware of the plight of the thousands of Fijian families that now make up a large portion of Fiji's squatter population. With all our mataqali owned land, Fijians should be the most well off and happiest race in Fiji, yet we are not.

I wonder whether, in deciding to spend $20-$30m on the GCC complex, they are remotely aware of the prevailing poor conditions of Fijian educational institutions in their own tikina and provinces. What educational facilities such as vocational education centres are provided out in the provinces for school drop-outs, to assist them find their feet in this increasingly competitive, and confusing world.

Are primary and secondary schools in the rural areas up to par with urban schools to help curb urban drift, and prepare Fijians for a better tomorrow. Successive Fijian-led governments in the last two decades or more have highlighted the need for Fijians to catch up to, and even emulate the academic successes and high standards reached in general by our Indian brothers and sisters.

We, commoners and ordinary Fijians could perhaps be excused for thinking that all this talk by our chiefs and political leaders for substantive advancement in Fijian education is just pure lip service when concrete evidence shows that while our Indian brothers and sisters establish the University of Fiji, our chiefs and political leaders propose, and agree to the construction of a $30m GCC complex.

Yes, thirty million dollars. The $30m could have gone a long way in improving Fijian educational facilities in the villages and provinces. This $30m of taxpayers funds have gone into the complex, while millions of dollars worth of GCC meeting facilities funded by taxpayers stand idle, or at best grossly underutilised around Fiji.

While Prime Minister, Bainimarama might have been a trifle flippant when he suggested that he "wished he could convert the GCC complex to the RFMF headquarters, but couldn't afford the rent the point he made was abundantly clear, and I agree totally with him the funds could have been better used if applied towards more deserving causes for the enhancement of the Fijian people.

I believe that what the Fijian people deserved, and needed from the GCC and our political leaders was not a monumental building complex that is now being built, but monumental decisions guided by the traditional, inherited wisdom with which our chiefs are supposed to be imbued towards improving the lives of the Fijian people.

And I sincerely believe that had our chiefs and political leaders made such monumental decisions in the past to have brought the Fijian race out of the depth of nonentity most Fijians find themselves in today, in their own land, Fijians wherever they are in the world would have been proud to freely contribute $50m or more towards a truly magnificent monument in honour of the GCC worthy of their true status, without touching a cent of taxpayers funds.

I commend the Prime Minister and the Minister for Fijian Affairs in their efforts to improve the lot of the Fijian people for the sake of all the Fiji Islanders in our nation today and tomorrow.

For that, I wish them all the success.



The only thing generic now in the eyes of the Fijian landowners, is whether criminal charges will be filed through FICAC (the corruption unit) or if any landowners who have been affected by NLTB's abuse, would even consider filing civil suit against these former board members for failing in their fiduiciary duties as well as leveling breach of trust charges, as a representative of the Native Lands Trust Board. This Case Law analysis of other notable cases using "Breach of Trust" involving Solicitor's liability.

The definition according to Lectric Law Library's Lexicon:
BREACH OF TRUST - The wilful misappropriation, by a trustee, of a thing which had been lawfully delivered to him in confidence.

The distinction between larceny and a breach of trust is to be found chiefly in the terms or way in which the thing was taken originally into the party's possession; and the rule seems to be that whenever the article is obtained upon a fair contract, not for a mere temporary purpose or by one who is in the employment of the deliverer, then the subsequent misappropriation is to be considered as an act of breach of trust.




[Above Image:Interim Fijian Affairs Minister announcing the resignation of 3 Native Lands Trust Board (NLTB)board members on Fiji TV.]




The question remains of what liability does NLTB have, since these abuses are no longer allegations but proven according to Court testimony heard in Nukurua Landowners Vs NLTB and the more recent case involving Fulton College. What is ironic is that the Mahogany plantations in Tailevu may have been a catalyst for the 2000 putsch in Fiji, according to a Times Magazine article.

This is an excerpt of the Times article:

TIME PACIFIC
August 20-27, 2001 | NO. 33


With the decimation of tropical rainforests driving up the price of hardwood, Fiji's mahogany plantations are more valuable than their British founders ever dreamed. So why can't the cash-strapped nation convert its green wealth into gold?
By ELIZABETH FEIZKAH Naimasimasi



Slicing away leafy obstacles with deft flicks of his cane knife, Kalipate Daunikuco hikes through the forest. Here and there, a pink ribbon nailed to a tree trunk marks the trail, but Daunikuco can do without such hints. After nine years as manager of the Nukurua mahogany plantation, 30 km north of Suva, he knows its tracks and trees as well as most suburbanites know their backyard. He's climbed fissured gray trunks to collect seed pods; carefully removed the winged brown seeds; weeded around saplings until they can fend for themselves, and scrutinized his charges for pests and disease.


Daunikuco says he likes it in the cool, dim forest, where the only sounds are the soft rustling of leaves and the whooping and trilling of birds. But he longs for the sound of chainsaws. The trees are ready to be felled, he says. "It's what we have all worked for."

After 30 years of tending, Fiji's 40,000 hectares of mahogany forests have matured into a potential goldmine. The hardwood they contain is worth billions of dollars; harvested sustainably, it could bring in

$40 million a year in perpetuity for the government, which inherited the plantations from the British colonial administration in 1970. Unlocking that bonanza should be as simple as cutting down the trees: all that's needed is an overseas investor with the money for logging equipment and sawmills and the expertise to process and market the hardwood. But two years after cutting was due to begin, Fiji's rich legacy has become a national ulcer, inflamed by greed, ambition and mistrust. And while landowners, bureaucrats and speculators jostle for a piece of the action, the country's 14 mahogany estates remain as quiet as ever.

There's not much bustle, either, in the handful of shabby hamlets that dot the road along Nukurua's jungle-clad eastern flank. In Naimasimasi village, three young men chat idly near the dusty co-op store; a squatting woman pokes at her garden plot. In his one-room house, 69-year-old Ratu N.D. Tawakelevu is adjusting the new wick on his kerosene lamp. There is no electricity or phone here, and the only reminder of the consumer culture is the Pepsi sign at the store. But the white-haired chief and his neighbors in this and nearby villages are rich in one thing: the plantation's 7,000 hectares-the floor beneath the vast green carpet that ripples across the adjacent valley-belong to them.

Sitting cross-legged on the grass mat that serves as his lounge suite, Tawakelevu explains that in the 1950s, local clan chiefs leased their unused land to the colonial administrators for 99 years, at "about sixpence an acre a year-now it's about two dollars." (Ninety percent of Fiji is owned by indigenous people, but the land parcels are held by clans, not individuals, and cannot be sold.) At first, says the chief, there was work for the villagers, clearing and planting. After that petered out, they didn't give the forests much thought. They didn't even have to collect the rent-that was done for them by the bureaucrats of the Native Land Trust Board, the state-appointed guardian of indigenous landowners.



But in the mid-'90s, says Tawakelevu, "we found out that this mahogany is very valuable." And he and his neighbors resolved to get a share of the treasure.

It's "for our young people," says the one-eyed chief, smoothing his Wesley Mission sulu skirt over his knees. "They should have something for the future."


The idea that landlords are entitled to a stake in their tenants' business enterprises might seem outrageous in the developed world. But in Fiji, where indigenous people's monopoly on land has failed to lift rural dwellers out of poverty, politicians are increasingly sympathetic to any scheme that might help them without the humiliation of handouts. In 1999, when the Labour government began preparing to harvest the mahogany, it embraced that view. "Our approach was that it would be a joint venture," says then Prime Minister Mahendra Chaudhry, "between the government, the landowners, and the investor."




The only questions were what kind of stake the landowners should have, and who the outside investor would be. But on the last issue, Chaudhry's sober plans collided head-on with the ambitions of George Speight. As chairman of Fiji Hardwood Corp., the state enterprise that runs the mahogany plantations, Speight aggressively promoted the cause of a newly formed American company with no apparent ties to the timber industry. When Chaudhry's government sacked Speight for alleged bribe-taking and picked a British company that was already harvesting Fijian pine, Speight-whose family has a farm near Nukurua plantation-told the mahogany landowners they were being cheated and that, as Ratu Tawakelevu still believes, "the government was trying to harvest the mahogany by itself." The ensuing alarm brought several landowning chiefs to Speight's side when he invaded Parliament and took Chaudhry and his government hostage; three nights later, a group of Speight supporters burned Fiji Hardwood's offices to the ground.

In the lush, church-studded hill country where Nukurua and a cluster of other plantations are located, life today seems peaceful to the point of inertia. But beyond the grazing cattle and the roadside taro stalls, the mahogany issue smolders like a slow fuse. With Chaudhry's government deposed and any harvesting deal on hold pending new elections at the end of this month, the nation's mahogany landowners have split into several groups whose allegiance is being anxiously courted by lawyers, government officials, bureaucrats, would-be investors and powerful chiefs.
Tawakelevu's group, the Mahogany Landowners Association, was the first to move. In March, it signed a deal with a four-month-old Californian company to recover mahogany leases from the government and run the plantations in a joint venture.

At wailevu village, beside idyllic blue Savusavu Bay on Vanua Levu island, Ratu Kinijoji Maivalili is the high chief of 38 clans, many of which own mahogany land. "I have met some people who talk big, in millions and billions," he says. "but when I ask them simple questions [about their business plans], they can't answer them. This indicates to me that they're fly-by-night people."


Caretaker Prime Minister Laisenia Qarase has pleaded with villagers to resist eye-popping offers. "You must not look only at this first harvest," he told the Mahogany Landowners Association in May. "You must consider this treasure a future, a permanent source of income if we do the right thing." But his predecessor Chaudhry fears that wise counsel is no match for greed: "Nobody thinks about sustainability and adding value by processing the timber," he says. "They just look at the trees, do a quick calculation and say, How much can I make out of this? Here we go! And in five years there will be no mahogany left."

It was to save indigenous Fijians from exploitation that the British colonists in the 1940s set up the Native Land Trust Board. Housed in a spruce white building opposite the decaying gray concrete of Suva's government offices, the board is the custodian of all indigenous land in Fiji. It has plans of its own for the mahogany plantations, and they don't include letting village bumpkins run their own show. The board hopes to buy back the leases on all Fiji's plantations and find its own investment partner to cut and market the timber.

"It's all for the landowners. We are fighting for them," says general manager Maika Qarikau, a prominent supporter of Speight's coup.

The stocky, gray-bearded Qarikau doesn't understand why some groups of landowners "seem to say we are against them." They need the board's protection more than ever, he adds: "With the troubles at the moment, there are a lot of sharks about."

But many landowners would rather swim with sharks than trust their official godfather. In recent years, complaints have multiplied about inefficiency, secretiveness and indifference to landowners' wishes. The way the board distributes income from leased land also grates: after it extracts a 20% administration fee and pays the local chiefs 25% of what remains, ordinary clan members-who could number 60 or more-are often left with a pittance.





Grassroots view of the NLTB


Unlike the land bureaucrats, high chief Maivalili is known for his scrupulous attention to the views of his people. "We are not happy with the way the nltb is running things," he says. "How can we move forward if the official people aren't looking after us? I feel we should do our own negotiations, because these people are sleeping-they are sitting on their backside." Chief Tawakelevu is just as wary of the board's protective hand. "Most of the top chairs, they just want to fill their pockets," he says. "That's why we decided to kick out those people and go with the American company ourselves."





The government and the board can quash any deal the landowners make, but the landowners hold a trump card: they can keep the trees in the ground. "We will just block the road to the plantation," says Tawakelevu with a grin. "Without an agreement with us, nobody will be able to get in to cut the mahogany-unless they have helicopters." But "there must be a peaceful way to solve it," he adds, "so everybody sits down for their piece of cake." Age has made him optimistic. "The Bible says we have three score and ten years," he says. "That gives me one more year. This mahogany will definitely be harvested before I die."

High chief Maivalili isn't in a hurry. "It is a resource," he says. "It can be left out there for 10 years and it will still be there. What would upset me is if people try to exploit it without the landowners." Fijians are proud of their traditional consensus-based culture, in which everyone comes together to talk out problems. But the mahogany issue is so highly charged that getting all parties to agree could take years. Still, any amount of talking is better than violence. And while it goes on, Kalipate Daunikuco will go on planting mahogany.




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