Decree to stop Natadola losses

by Elenoa Baselala

Fiji Times - Thursday, May 06, 2010

CABINET has approved the Natadola Development Bay Development decree to plug the erosion of funds through the Natadola development project. The decree cancels former developers Asia Pacific Resorts Limited's (APRIL) foreign investment certificate because of the non-disclosure and misrepresentation of its foreign shareholders.

It also provides for the forfeiture of the shares held by APRIL in Natadola Land Holdings to FNPF Investments Limited.

In addition, all properties presently held by APRIL that formed part of the integrated resort development would be transferred to the property of NBRL.

"This is necessary to enable Natadola Bay Resorts Limited to continue with the development of the Natadola Bay Project and to ensure that meaningful securities are provided by NBRL to FNPF for the monies invested by FNPF...," Tourism head Aiyaz Sayed-Khaiyum said.

"What this will mean is that the problems faced by various subsidiaries of FNPF in acquiring proper ownership and securities to the development carried out by them using the funds of the members will no longer exist.

"Consequentially, the decree excludes any challenges in the courts against the forfeiture of shares, the transfer of property or any decision made by the Minister of Finance or any State official under the decree.

"The decree also terminates various court proceedings in relation to the Natadola Bay Development which have been pending in the courts for a number of years now and it paves the way for NBRL and FNPF to make advancements to the development of Natadola Bay without any legal or administrative hurdles.

"It should be noted, however, that the forfeiture of the shares under the decree will not affect the day-to-day running of the company nor will it affect the rights and obligations of those dealing with the company or those who have contracts with the company except of course HPPL, its directors and shareholders.

"Essentially, what this means is with the implementation of the decree, it means FNPF will have the legal ability to carry out developments in Natadola without any obstruction from shareholders in HPPL, whose participation in the project had led to these various write-offs arguably.

"It also means that there would be the possibility of write-backs into the members' funds with the development of the balance of the land in Natadola."