Clarification on Fiji Sun Front-Page Article of 20 June 2025

Lautoka- The Fiji Sugar Corporation Limited (FSC) has noted with concern the front-page article “Contra Dispute” in the Fiji Sun on Friday, 20 June 2025, which implied that the Cabinet did not approve the recent disposal of certain FSC land assets. We wish to set the record straight and assure all stakeholders of our adherence to proper governance and transparency.

1. No Cabinet Direction
FSC is not aware of any such decision and has received confirmation from the Minister for Multi-Ethnic and Sugar Industry, Honourable Charan Jeath Singh, that the Cabinet has not issued any such instruction in relation to this transaction. The Board of FSC, vested by statute under the Companies Act with full authority to conduct the Corporation’s affairs, acted within its remit in approving this debt-swap arrangement between FSC and South Pacific Fertilizers Ltd (SPF).

2. Nature of the Transaction:  A Debt Swap, Not a Sale
Contrary to suggestions that this was a normal commercial property “sale,” the transaction, in fact, was structured as a debt swap. This strategic move relieved FSC of approximately FJD 9 million in long-standing liabilities to the South Pacific Fertiliser Ltd, effectively lifting that burden from the balance sheet and strengthening the financial position.

3. Context of Prior Property Disposals (2019/20)
It is also important to note that during the 2019/2020 period, under the previous government and Board, FSC disposed of nine properties (covering 633 acres), three of which were adjacent to the Bowling Club, at significantly lower prices. There was not a single objection either by the government or by any of the industry stakeholders. Of even greater seriousness is the fact that all these nine properties were sold to external parties and institutions for their private profit well outside the industry.  No such concerns were raised at the time.

In the last two years, FSC has divested only two properties (10 acres), both of which were sold to sugar industry stakeholders: the Sugar Cane Growers Fund and South Pacific Fertiliser Ltd.

Unlike the 2019/20 sales, where the nine buyers have complete freedom to do whatever they like, we have included in both the current cases the highly restrictive covenants requiring, firstly, the buyers to pass on the benefits of their investments to the industry and, secondly, for FSC to have the right of first refusal in the event of any future sale or variation in use.

4. Price Comparisons with Previous Sales

For the record, it is also worth noting that all transactions have been conducted on a fully transparent, arm’s-length basis, in total compliance with the FSC’s tender and approval procedures.

In 2019/20, FSC sold 9 of its most valuable freehold and state land properties, many of which were located within highly commercial urban precincts, totalling 633 acres, to private interest groups and large institutional organisations at an average price of $101 per square metre. Included in that was nearly 10 acres of land and valuable port infrastructure, disposed of at a low value of only $50 per square metre.

The current swap of the Bowling Club is at a value more than 10 times the average price that was realised in 2019/20 for those nine properties.

5. Future Divestments Policy  only for the benefit of the industry

The FSC Board has made a policy decision that no property will be sold to any outsiders unless there are compelling and justifiable circumstances, in which case, prior approval will be sought from the government. Any such divestment will have to meet the test of public interest, particularly the interests and benefits of the industry stakeholders. FSC assets will not be monetised for the maximisation of private profits, as has been the case in the past.

6. Commitment to Transparency and Stakeholder Interests
FSC remains committed to the prudent management of its land holdings, ensuring that any decision to divest surplus assets is made in the best interests of the growers, employees, and the broader sugar-growing community. All Board decisions are taken following due process, rigorous valuation, and full disclosure to the shareholders and relevant Ministers.

We trust that this statement clarifies the facts and alleviates any misunderstanding arising from last Friday’s article. FSC will continue to engage openly to uphold confidence in its governance and strategic direction.