Board explains Bovoro’s sacking
7/21/2008
Former Fiji Development Bank chief executive officer Tukana Bovoro was dismissed because of differences with the board.
Board chairman Taito Waradi said one of the main issues regarding his dismissal was irreconcilable differences over management philosophy between Mr Bovoro and the board.
But Mr Bovoro said yesterday he did not have any differences with the board. "I really want to know what the philosophical differences are because nothing to that effect was stated in the termination letter," he said.
"I think it is totally unfair that he should be doing this in public when he should have at least informed me first."
Mr Waradi said Mr Bovoro had been given the opportunity to respond to the board's concerns.Mr Bovoro confirmed that he had replied to the board.
"The board had fully addressed Mr Bovoro's response to its decision to relieve him of his duties,'' said Mr Taito. "Full and proper procedures leading to his termination have been followed."
In the meantime the board has appointed Mr Waradi as executive chairman to carry out the executive functions of the CEO, as well as those of chairman until a new CEO is in place.
Mr Waradi also announced a reorganisation of the bank's senior management structure as part of a new direction in its lending policies. The number of general managers has been reduced from six to four.
Under a new mandate from the government and in line with its Strategic Development Plan 2009 to 2011, the bank's aim is to create greater and stronger economic activity in sectors such as agriculture, forestry and fishing.
"The reorganization includes the creation of a new position, General Manager North in response to the need for greater business development in the Northern division and better contract and communication with the community. The new post is now being advertised."
He said the position of CEO is being advertised locally and an appointment is expected in a month or two.
One interesting intersection of the Fiji Development Bank story is an article from Fiji Village, which alludes to a Fiji Development Bank loan and a looming court case.
The excerpt of the FV article:
Court Battle Looms On Businessman Loan
Publish date/time: 22/07/2008 [10:53]
A court battle looms in light of information surfacing that a top businessman took a major loan from the Fiji Development Bank and gave the Native Land Trust Board's name as the guarantor of the loan.
Fijivillage had received information that the money borrowed from the FDB by the businessman amounted to more than a million dollars.
It is not known at this stage who signed off the Native Land Trust Board (NLTB) guarantee for the private loan taken by the businessman as the NLTB or the native landowners did not benefit at all through the loan.
When we contacted senior officials at the Native Land Trust Board. They refused to make any comments. They only said that the information had surfaced and the NLTB had taken the stand that it did not guarantee the loan.
Fijivillage had also been informed that the matter is likely to end up in court. It is also not known at this stage whether the businessman is still making repayments for the loan, as the Native Land Trust Board would be ask to pay the amount if the borrower had defaulted.
The FDB loan for the businessman with the NLTB guarantee for the loan was approved and paid out before the December 5th takeover in 2006.
It appears that the loan exceeding $F3 million was approved, on the understanding that the Native Lands Trust Board (NLTB) was the guarantor. Questions are bound to rise, regarding the removal of the C.E.O and if that had anything to do with this particular loan. Another interesting point that should be cleared is, Was the former C.E.O aware of such loan application?
An article from Mai Life online magazine, covers the subject of loans issued by Fiji Development Banka and quotes from the former head of Fiji Development Bank and deposed Fiji P.M, Laisenia Qarase.
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