Parliament committee urges FNPF to be more transparent

Parliament’s Standing Committee on Social Affairs has called on the Fiji National Provident Fund (FNPF) to strengthen communication with members before making major investment decisions.

In a consolidated review report on FNPF’s 2023 and 2024 annual reports tabled last week, the committee shared concerns that major investment decisions were not being adequately communicated to the public.

“The committee noted with concern that major investment decisions undertaken by FNPF are not being adequately communicated to the public, thereby limiting transparency and stakeholder awareness,” the report stated.

The committee recommended that FNPF strengthen existing mechanisms to ensure members are adequately informed of major investment decisions prior to their finalisation, including clear communication of associated risks and benefits.

FNPF manages $10.6 billion in total assets as of June 2024, with $8.1 billion belonging directly to over 423,000 members.

The committee also highlighted the need for clearer reporting on returns from government investments and reassessment of underperforming assets to protect member interests.

Committee chairperson Iliesa Vanawalu noted that interest earned from government bonds has remained stagnant since 2020 due to high liquidity in the market.

The report recommended that Government and the Reserve Bank of Fiji facilitate easier approval processes for offshore investments to enable greater diversification and improved returns.

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