Investment ethics under spotlight

Fiji National Provident Fund has set a dangerous precedence that could backfire, when it bought in to construction company Higgins Holdings (Fiji) Pte Ltd, Parliament was told.

In his contribution on the Consolidated Review Report of FNPF’s 2023 and 2024 performance, shadow minister for Tourism, Faiyaz Koya, also called for an inquiry into how and why the decision was reached for the fund to buy 25 per cent of Higgins Fiji.

He cited the walkout of workers at Westin resort as a classic case of conflict, after a disagreement between FNPF and Higgins delayed the project.

Mr Koya warned of a likely scenario where FNPF could ultimately sue its own company.

“Why did we get in this position in the first place,” he said.

“This is not an uncle and nephew situation that the Finance minister made it out to be; it doesn’t work like that.” 

In another development on the same motion, Assistant Minister in the Office of the Prime Minister, Sakiusa Tubuna said FNPF had $12 billion in reserves that it did not know how to spend.

“Oversight into FNPF investment should be strengthened,” he said.

“I was talking to a current member of the Opposition who wished to explore business partnerships with FNPF, and was told FNPF can only invest in businesses with a value of $30 million. 

“This is ridiculous, and this policy should be changed.”

Lowering the investment threshold would open the door for more Fijian-owned businesses to access strategic capital, ultimately boosting economic participation and national development, he said.