Govt divestment plan rakes in $3m

A divestment plan set up by the Government made $3 million in four years .

In its first annual report dated 2016-2019, Assets Fiji Limited - a special purpose vehicle created by the Government to manage its divestment plan - said the main source of revenue was rental income generated through lease agreements of land areas which were not core operations for Fiji Ports Corporation and Fiji Ships and Heavy Industries Limited.

Established in 2015, Assets Fiji controlled the transfer of all interest in land assets from Fiji Ports Corporation.

But only port operations were divested under Assets Fiji, while land asset was set aside from core business operations, the report said.

The company leased assets necessary for port operations back to Fiji Ports Corporation and Fiji Ships and Heavy Industries Limited.

The land title transfer and lease back agreement was also signed on the date commencing November 13, 2015, for a term of 50 years.

Chairman Shaheen Ali, who is also Permanent Secretary for Trade, said most of Assets Fiji’s tenants were based at Rokobili Subdivision, Walu Bay.

“Assets Fiji recorded an accumulated net profit after tax of $3.39 million for the years 2016 to 2019,” he said.

“The company’s strong balance sheet consists of its strategic properties/assets valued at around $57.38 million.

“The company has zero external borrowings and a current liquidity ratio of 2.9 at the end of the year 2019.”

Assets Fiji has 35 land titles, near the Lautoka, Levuka and Suva port areas.

Functionality

Under the part privatisation of Fiji Ports Corporation - which was to allow for continued improvements, expansions, and modernisation of Fiji’s Port facilities - the Government’s divestment decision led to the formation of a partnership three entities:

•  Ministry of Public Enterprises controlled 41 per cent,
•  Fiji National Provident Fund had 39 per cent, and
•  Sri Lankan conglomerate Aitken Spence PLC controlled the remaining 20 per cent.

Transfer and Lease back

The transferred properties are mostly strategic seaport areas situated in Lautoka, Levuka and Suva comprised of Freehold and Crown leaseholds.

During the sale of former Government Printing and Stationary Department in 2018, the Government approved the transfer of land and building at Viria East Road, Vatuwaqa to Assets Fiji, as a property management company to oversee and manage on behalf of the Government.

As State land, Assets Fiji leases the land from Ministry of Lands, to sublease.

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