Government backs $20m PAFCO loan
MPs approved the five-year guarantee, taking the Government’s total backing for the Levuka cannery to about $31.3 million.
Tuesday 03 November 2026 | 10:30
Updated 03 November 2026 | 11:47 FJT
Minister for Finance Esrom Immanuel in Parliament on November 2, 2026.
Photo: Parliament of Fiji
The Government will have to pay the outstanding loans of the Pacific Fishing Company (PAFCO) if the Levuka cannery defaults on a new $20 million borrowing.
This was highlighted by Finance Minister Esrom Immanuel in Parliament yesterday as MPs unanimously approved the guarantee.
The five-year guarantee runs from November 1, 2026, to November 30, 2031. It lifts the Government’s total guarantee for PAFCO to about $31.3 million.
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“In the event of a default, the government will have to settle any outstanding government guarantee,” Mr Immanuel said.
He said it was a contingent financial obligation, and PAFCO must use the money carefully under an approved business plan.
The Government’s guaranteed debt to related entities stands at about $1.2 billion, or 8.3 per cent of GDP. It will rise to 8.4 per cent.
The money will fund plant upgrades, a $5 million trade facility and $1.4 million in repairs.
It will help PAFCO meet the needs of new partner Frinsa Group of Spain, one of Europe’s largest canned tuna and shellfish manufacturers and a major private-label supplier for leading European retailers, after Bumble Bee left in July.
PAFCO is also exempt from paying a guarantee fee.
PAFCO forecasts a $5.5 million loss this year but expects a $1.06 million profit in 2027. It is Ovalau’s largest employer, with up to 1,000 workers, and more than 60 per cent are women.
Opposition MP Premila Kumar backed the motion because Levuka families’ livelihoods were at stake.
“Our support should not be mistaken for confidence in the management of this company,” she said.
Ms Kumar said taxpayers could face a liability if PAFCO fails to repay. She said the last annual report it submitted was for 2019, and asked for a ministerial statement every six months.
Mr Immanuel said management and the board would update past reports and report to the Ministries of Public Enterprise and Finance.
He said the Government was taking a whole-of-government approach to help PAFCO and Levuka’s economy.
Speaker Filimone Jitoko declared the motion agreed to after no member opposed it.
