Fiji opposition challenges FDB loans and FRCS revenue records

Fijian opposition MP Premila Kumar has raised significant concerns regarding the financial management and revenue collection processes within the country's key institutions during parliamentary debates.

Regarding the Fiji Development Bank (FDB), Kumar questioned the bank's $34 million in loans to sugarcane farmers and its $20 million exposure to the Fiji Sugar Corporation (FSC), which faces approximately $310 million in debt. Deputy Prime Minister Manoa Kamikamica noted that the FSC debt is government-guaranteed. Kumar also highlighted a gender disparity in FDB's loan portfolio, noting that while women make up 30% of account holders, they represent only 18% of the total loan value.

Separately, Parliament scrutinized the Fiji Revenue and Customs Service (FRCS) following a record $3.104 billion revenue collection. Kumar questioned whether this growth resulted from genuine economic activity or increased tax burdens, specifically citing the rise in VAT from 9% to 15% and corporate income tax from 20% to 25%. Additionally, the opposition called for transparency regarding $109.5 million in waived or withdrawn penalties. The Standing Committee on Economic Affairs identified a significant tax compliance gap among micro, small, and medium enterprises (MSMEs).