Brooks supports plans for reform

www.fijitimes.com - Wednesday, November 25, 2009

THE International Monetary Fund has supported recommendations to reform the Fiji National Provident Fund to make it "actuarially sound".

IMF Fiji Mission chief Ray Brooks said they supported the State's intention to conduct a comprehensive study on reforming the FNPF.

"The generous rate of conversion of benefits to annuities should be reduced and management should be made independent of government and responsible to beneficiaries," Mr Brooks said.

"The government should reduce its reliance on the FNPF for financing and the FNPF should not be used to finance public enterprises since these actions undermine the fund's soundness."

Mr Brooks made the comments after two weeks of meetings involving state officials and non-governmental organisations

The announcement comes as the FNPF prepares to release its annual accounts for 2008 and 2009.

In an earlier interview with this newspaper, chairman of the FNPF and permanent secretary for Finance, John Prasad said the delay had been in obtaining the Natadola Bay Resort Holdings accounts.

This was due to a legal dispute between former NBRL managers Asia Pacific Resorts International Limited.

The 2007 accounts received a qualified audit opinion due to the "missing" NBRL accounts.