Politics

Waqavuka Financing Limited Is A Unique Company: A-G

Mr Sayed-Khaiyum made the comment in Parliament yesterday following rumours spread by opponents that he and Prime Minister Voreqe Bainimarama own shares in the company.
20 Feb 2020 10:49
Waqavuka Financing Limited Is A Unique Company: A-G
Waqavuka Financing Limited proof of ownership.

Waqavuka Financing Limited is a unique company or a special purpose company that acts as a third party on behalf of Fiji Airways and the Consortium of banks, said Attorney-General Aiyaz Sayed-Khaiyum.

Mr Sayed-Khaiyum made the comment in Parliament yesterday following rumours spread by opponents that he and Prime Minister Voreqe Bainimarama own shares in the company.

Attorney General and Minister for Economy Aiyaz Sayed-Khaiyum outside Parliament on February 19, 2020. Photo: Ronald Kumar.

Attorney General and Minister for Economy Aiyaz Sayed-Khaiyum outside Parliament on February 19, 2020. Photo: Ronald Kumar.

He said the company was set up as a form of security if any time Fiji Airways may fall behind in repaying their loan.

“Fiji Airways on a monthly basis do the repayment of the loans into the special company, then the company disburses the repayment money to the Consortium of Banks.”

In 2011, there was a decision by Fiji Airways to purchase three Airbus Boeing A330-200s and have them financed.

Mr Sayed-Khaiyum said there were two options of acquiring the Airbus aircraft.

“One was to purchase the aircraft outright and pay upfront, or second normally you pay 20 per cent of the total cost for the aircraft to be made,” Mr Sayed-Khaiyum said.

“A normal 20 per cent down payment needed to be paid to the manufacturers of the aircraft with the home company or with different regional organisation in order for aircraft to be made.

“Now in our particular case, $146 million was required for the down payment for the purchase of the aircraft. The funding for the aircraft was financed by a 12-year loan from FNPF.”

To date, Fiji Airways has already paid $92 million, he said

“Now the balance of the 80 per cent loan to pay the balance of the net fly away purchase price was provided by a Consortium of German Banks to provide guarantee,” Mr Sayed-Khaiyum said.

Edited by Ivamere Nataro

Feedback: ilaijia.ravuwai@fijisun.com.fj


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