Party Owes Half A Million To Trader

A Suva businessman is owed more than half a million dollars by the FijiFirst party, the highest outstanding debt owed by the party to its creditors. The businessman, who spoke to us on the condition of anonymity, sought legal advice and action late last year when the party had de-faulted in its payment.

“The party was supposed to pay me last year, but they didn’t follow their credit payment plan of two years. However, the party has acknowledged that they owe me this much,” he said.

FijiFirst, which is on the verge of deregistration, owes a substantial amount of money to its creditors close to a million dollars as highlighted in its 2023 audited financial accounts submitted to the Fijian Elections Office. The financial status of the FijiFirst always appeared stable in the eight years they were in Government, with the backing of the business powerhouses in the country.

An informed member of the party said, the outstanding debt was more than what was published in the audited accounts.

The audited account indicates that the party does not have the financial capacity to pay its creditors.

The informed member said the debt was expected to be null and void because of the resignation of the founding members Voreqe Bainimarama and Aiyaz Sayed-Khaiyum the two who controlled the affairs of the party.

He further said it was up to the creditors whether they wanted to take legal action.

According to the member, the party only has about $10,000 in its bank account.

The businessman said FijiFirst was once a good customer. He said he now faced problems because of the amount of money owed to him.

“FijiFirst always buys from us even before the 2022 election, I never thought that the party would do this, we saw it as business relationship,” the businessman said.

“I made a mistake to do business with a political party, and that’s a learning curve for me.”

FijiFirst purchased promotional items on credit totaling $650,000 in the lead up to the 2022 general election. So far, the party has only paid about $100,000.

The businessman said the instability within the party following their loss in the election affected their debt payment.

It was to the businessman’s understanding that FijiFirst would continue to pay their debt, despite their loss in the election, through the parliamentary allowance allocated to political parties.

Political parties receive $325,000 as parliamentary grant.

The businessman said given the party’s current situation, and the possible deregistration of the par-ty, his only option was to seek le-gal advice on what actions to take next, “whether an individual, who was member of the party can pay it”.

“It is embarrassing what has happened to the party. For the founders to resign given the number of years the party was running Government and this country.

“If the party is deregistered, there’s a problem, how will they pay the debt, how are they going to face it.”

The businessman said items given to FijiFirst were never a donation, but rather under a mutual business understanding that showed the party had the financial capacity to pay.

FINANCES

As of December 31, 2023, FijiFirst has a total cash of about $47,000, comprising a fixed term deposit of $22,209 and cash of $25,342.

The party’s audited financial account indicates it has an unstable financial position because its liabilities is more than its total as-sets that only total $208,742.

FijiFirst outstanding debt as of December 2023 amounts to $910,000.

Creditors must either write off the debt or take legal action to ensure they are paid. The party was running on a deficit of $701,680.

It only cleared $740,000 to their creditors from 2022.

The party’s financial donation during election year has always been in the millions.

In the 2022 general election year alone, total financial donation was $2,227,087, the bulk of which was used for election campaign.

In 2023, monetary donations dropped to $106,699.

This money was received from individuals.

Speaking on the condition of anonymity, an individual who had close connections to the party, said he would direct his friend in the party on which individuals and businesses the party should collect funding from.

According to the individual, who is also rumoured to be the influential money man, said he and his family never contributed financially to the party.

Opposition Member of Parliament Inia Seruiratu said it was unfortunate that the FijiFirst party has come this far.

The FijiFirst party is due for de-registration on June 28.

Former party treasurer Hem Chand declined to comment.