Fiji resort seized by military regime

Fiji's military regime has seized a partly New Zealand-owned failed resort in a bid to protect its ailing national superannuation scheme from worsening losses.

Military appointed Attorney General Aiyaz Sayed-Khaiyum has announced a decree over the Momi Bay resort, one of the once-star assets of failed finance company Bridgecorp.

It was being built by Bridgecorp-owned Matapo, which is in receivership along with Bridgecorp.

Last month, the Fiji National Provident Fund (FNPF) said it had written down FJ$327 million ($232 million), greater than its annual members' contribution, including FJ$18m ($13 million) on the resort.

Bridgecorp, which had 7 per cent of its assets at Momi, lost $106.6 million and its receivers have been trying to recover their investment through legal action.

FNPF is in dispute with Matapo but the regime has now moved to stop it with the Momi Bay Development Decree.

"Given the fact that Matapo is challenging various issues by FNPF, which would see a very protracted, battle if you like, that would not have benefited anybody in Fiji. It made it imperative that government have this specific decree ... ," Mr Sayed-Khaiyum said announcing the decree.

He said the regime stepped in to ensure Momi was developed and sold. They also wanted to halt any further losses to FNPF.

Bridgecorp's New Zealand receiver was not available for comment on the implications of the decree for 18,000 creditors involved.

Military commander Voreqe Bainimarama staged a coup in 2006 and last year he suspended the constitution. The country is now ruled by military decree, which cannot be challenged in any court.

Earlier this month Bainimarama slammed auditors and accountants involved in Momi and Natadola.

"Didn't they have responsibility to bring it to the public's attention that some parties were paid moneys not commensurate with the services and expertise that were allegedly provided?" Bainimarama said.

"Professional privilege is always cited as a reason for silence. But surely when the then FNPF board and management continued to misrepresent its books to the people, didn't the auditors rather than simply draw it to the attention of their clients have at the very least a moral obligation to disclose such matters to the media, public officials and the public?"

- © Fairfax NZ News