FRCS chief points to past leadership in $23m tax fraud case

Fiji Revenue and Customs Service (FRCS) chief executive officer Udit Singh has pointed to past leadership within the organisation as a factor in how the owner of a chain of electronic stores was allegedly able to defraud the Government of $23 million in tax dating back to 2019.

Speaking to this masthead yesterday, Mr Singh did not directly answer questions about why no action was taken against Dickson Peng, a Chinese national and Fijian citizen, who left the country in April despite a stop departure order being in place.

Instead, he said: “The point is we’ve come across it. There’s been a big change in leadership over time and in how we look at risks and information.

“We wouldn’t have put it across to Police and the Fiji Independent Commission Against Corruption (FICAC) if there wasn’t a bone to pick.”

Pressed on why Mr Peng’s businesses remain operational, Mr Singh said: “It’ll unfold in due course. I don’t think it’s far away, but we don’t want to prejudice anybody.”

Mr Peng, who also owns multiple properties in Fiji, is alleged to have created false and fictitious invoices, falsified sales records and claimed fraudulent Value Added Tax (VAT) refunds.

Mr Singh declined to comment further on the matter, but said FRCS had issued a timely alert to the Immigration Department regarding Mr Peng’s stop departure order.

“We have a very good relationship with immigration. We work very closely. When there’s an issue, we send them a note, they confirm that the stop departure order is in place, and that’s it.”

Mr Singh confirmed FRCS had forwarded a report to Police and that the matter was also under investigation by FICAC.

Immigration response

Ministry of Immigration Permanent Secretary Aliki Salusalu admitted the department failed in its process and suggested connections may have influenced the situation.

“It’s not supposed to happen,” he told this masthead, confirming an internal investigation is under way to determine what happened and identify policy gaps.

“They can’t leave the country with a stop departure order. Stop departure orders must come in a timely manner because those evading tax, the first thing they do when they are caught is pay their airfare.”

Mr Salusalu said stop departure orders and border alerts are issued by FRCS, the Fiji National Provident Fund, the Tertiary Education Loans Scheme, the courts and Police.

“Immigration facilitates the request, and we put it in the system because it contains details of everyone.”

Despite public perceptions that the ministry may be compromised, Mr Salusalu said: “We always maintain our border integrity. I am not giving excuses. We want to understand why this happened. Maybe a process is missing, so we can implement corrective and preventative actions. There’s always room for improvement.”

Mr Salusalu outlined the citizenship process for foreign investors, saying Mr Peng would have obtained citizenship by naturalisation after undergoing rigorous scrutiny and meeting the required criteria.

Mr Peng’s lawyer, Semi Leweniqila, who lives at a Princes Road property owned by Mr Peng, declined to comment.

“I must protect my client’s interests. I owe a duty to him,” he said, adding that he had not been contacted by investigators.

Mr Leweniqila has represented Mr Peng for the past two years.

Assistant Minister in the Prime Minister’s Office Sakiusa Tubuna rejected claims of involvement in the matter, saying he did not attempt to inquire with FICAC about Mr Peng’s files.

Mr Tubuna is the brother-in-law of Mr Leweniqila. He acknowledged frequently visiting Mr Leweniqila at his Princes Road apartment for kava sessions.

Meanwhile, Mr Singh and Mr Salusalu confirmed their organisations were modernising and strengthening internal systems to improve operational effectiveness.

The Anti-Money Laundering Division of the Criminal Investigations Department and FICAC are investigating the matter.

Business operations

Mr Peng established Dickson International Trading Co Ltd in 2000. The company now operates stores in several locations in Suva and Lautoka.

He co-owns the company with two other Chinese nationals.

Between 2017 and 2018, Mr Peng’s company, Freesoul Real Estate Development (Fiji) PTE Limited, carried out development works at Wacia, part of Malolo Island, to build a multi-million-dollar resort and casino project.

The development was halted on April 28, 2022, following a High Court ruling that fined Mr Peng $1 million on two counts of unauthorised development.

Freesoul was granted a 99-year tourism lease by the iTaukei Lands Trust Board (TLTB) to develop Wacia.