SMOKE AND MIRRORS

Fiji’s ignorant, illegal Prime Minister Commode Voreqe Bainimarama says Government has faced many challenges by many, particularly from those outside the country.

Because these people don’t agree that the Fiji Nation should have to put up with an illegal self appointed regime that took over a legally elected Government with the use of firearms

“Our traditional allies, those we have fought alongside with, those who we have served together in maintaining world peace and security, those who are our traditional trading partners, those who claim to have Fiji’s interest at heart, those who claim to adhere to true democracy, have challenged Government.

It is countries who exist in democracy that abhor Voreqe Bhainimaramas illegal stance and are not fooled by his incoherent utterances

“They have misrepresented the ground realities in Fiji, they have tried to bully us, they placed travel bans on ordinary citizens of country and Government ministers, they put in place advisories which are misrepresented of facts, they misinform their viewers, their readers and listeners,” Bainimarama said.

Wrong again Voreqe, the travel bans are placed on you and your coupsters  and your families, yeah?

The Bully is Voreqe himself a real Kean Gwilliam mold who continually blames everyone else except himself  for the humungous error he’s made in raping the Nation of Fiji and it’s Citizens of their basic human rights to live and work in a democracy.

He was speaking at the opening of the Intercontinental Fiji Golf Resort and Spa at Natadola over the weekend.

The guests cringe like hell when the madman opens his mouth and fumbles through the speech written by someone else……………………yiiiiiiiiiiiiiiiiiiiiiiiiiiikes.

Bainimarama however urged people to persevere and ensure that Fiji’s vision, goals, and objectives are put in place and realized.

“We shall collaborate with all who want to build or help build a better Fiji, a Fiji that has a liberalized economy, a Fiji where all its citizen are treated equally, where we have a level playing field for all businesses, where systematic corruption is erased, a Fiji with equitable returns to landowners, a Fiji where the economy is driven by the private sector for the benefit of all not just the select few and a Fiji that continues to be a safe and secure destination,” he added.

Fiji will only be safe when Voreqe and his incompetent murderous military are disarmed for ever, and the systematic corruption that has been rife since 5.12.06 is curtailed.

As for the ‘liberalised economy’, Well Voreqe has been extremely liberal with undermining the economy by overspending taxpayers money he and his illegal cohorts have absolutely no right to.

He also acknowledged the land owners, the Directors of Natadola Bay Resort Limited, the Intercontinental group and the construction company for their perseverance in ensuring the hotel is a successful one.

Hey something fishy’s going on here as RFN has revealed……………………………….

I write for the sake of the current members and pensioners of FNPF to correct some of the lies released by the FNPF board, the chairman of FNPF subsidiary, NBRL Board, Felix Anthony. In particular I want to address the perception that FNPF was taken for a ride as one previous Board members and the new Board have widely publicized.

Firstly, the broad issues to understand before assessing the performance of the Natadola project is that the joint-venture partners were FIL and APRIL. FIL cannot commit FNPF into any funding arrangements. FNPF has to make its own decisions on any investment. The management agreement gives FNPF first option on any funding of the project, not the obligation to fund the project.

Second, FIL bought shares in NLH not the land. The land is part of the assets owned by NLH. The value of NLH can be determined by valuing the assets owned by the company  (land, master-plan, management agreements with Four Seasons and InterContinental  Hotel, Goodwill), discounted cash flow or using a multiple on maintainable earnings. The first is used to value companies that is not operating and intends to close down. The second for companies that is establishing itself with projected revenues, profits and cash flows, the third for companies that is based on the discounted cash flows from land sales, the only sources of revenue to NLH as a developer. It is therefore childish to use the first method for a new company that owns and will develop and sell land whose value will be increased with the completion of the golf course, hotel, mariner and shopping complex which are all in the master plan.

The NLH Board initiated the review of the Development Management Agreement in 2005 with the view to removing the clause on the ‘special dividend’ and review the management fee under an ‘open book’ approach where fees would be based on costs incurred only. In addition, functions that can be handled by FIL and NLH were to be transferred out of APRIL and I believe this is being done or has been completed. This was agreed to because it is for the benefit of both parties to reduce the management fees  which  is paid by NLH, not by FIL, or FNPF.

APRIL agreed in principle in September 2005 to remove the special dividend and replace it with a ‘success fee’ of 7.5% of sales only for lots sold above the target set in the agreement. I believe the targets ranged from $325,000 to $500,000 per lot before any ‘success fee’ becomes entitled to. It was  more a Sales Commission and was going to be offered to any other persons or entity who wanted to help sell the lots. It was also agreed that the word ‘dividend’ implied that any entitlement under clause 9.3 had to come from profits. This made the clause ineffective and still is until some land is sold and all costs recovered before any NLH makes any profits. In the current environment, I don’t think any of the targets would be achieved and hence no success fee entitlement fee to APRIL. The amount of $39.15million quoted by Felix Anthony as APRIL’s entitlement under the agreement therefore cannot be correct at this point in time. The management fee was going to reduce to zero at the end of the construction period and reduced over time as NLH and FIL take some of the office functions out of APRIL  allowing  APRIL to focus on the work on site.

On the issue of valuation, the initial valuation of $5.5million was based on the unimproved value of the land. If NLH was going to turn the land into a cane farm, that valuation probably would have been acceptable by both parties. Of course FNPF would go for the lowest valuation in order to pay a low price for the land. But once the use of the land is changed from agricultural to tourism development, naturally the value of the land goes up for a piece of land is changed from agricultural to ….. residential lots with sea view, recreation, mariner, shopping complex and beachfronts as allowed in the master plan, the value of the land must reflect its future use. That is why a valuation based on the Master Plan was relevant. The initial valuation obviously did not consider the master plan and the interest in the project by Hotel InterContinental to manage the hotel, Four Seasons to manage the Navo Island Resort and Vijay Singh to design and be the signatory of the Golf Course. All the preliminary work including the acquisition of the land and obtaining relevant development approvals that created these values were done by APRIL  before it offered 51% of the land to FIL for $10.2million.

Not to forget that as financier, FNPF will earn interest totaling $89.6million over 15 – 20 years and dividends for as long as it remains a shareholder of NLH and NBRL initially estimated at $93 million. That was the main reason why FNPF invested in Natadola. First, to earn a higher return for FNPF members and pensioners, second to provide employment for its members and third to develop undeveloped land for the benefit of the landowners and the economy in the long run.

In summary, the joint venture partners were FIL which brought in its funding resources as its contribution to the project, and APRIL which brought in the land, master plan, management agreements for the hotels and management expertise. FIL could not go with anyone else on the project because it was APRIL who legally had rights to the land.

5 Responses to “SMOKE AND MIRRORS”

  1. kingrat Says:

    isa ko viti! vore sonalevu

  2. Ratu Sai Says:

    Well it is to be expected from RFN to regurgitate old Fiji Times news this article was written and appeared Friday, June 08, 2007.

    Tell us something new RFN most of what you write are mere suppositions and indeed fallacious.

    Sure there was a lot of corruption occurring during the initial and mid- phases of this project; however RFN failed to report the project contractor APRIL (Asia Pacific Resort International Limited) French-born chief executive was found guilty of complicity of bankruptcy.

  3. Budhau Says:

    According to those news reports, Saliot, CEO of APRIL which was the Natadola project managers, quit when if was made public that he had previous convictions.
    Those same reports said that Saliot had been jailed in Monaco in 1992 for two years for breach of trust and had faced the courts again in 1993 when he was given a three-year term for complicity of bankruptcy, breach of trust, forgery and use of forgeries.

    The interesting thing here is not who Saliot is or what he did.

    The bottom line is that APRIL was hired as project manager in 2004. Those dumbass SDL idiots – have they ever heard something called due diligence. Who checked this guy out before they decided on the several hundred million dollar project.

    When Saliot did not disclosed his criminal background when applying for his foreign investor’s licence, a breach of Fiji’s investment laws – whose job was it to go find out?

    In any other country if someone had done what those SDL guys at FTIB and the RBF did or did not do, someone’s ass would have been nailed to the wall – but not in Fiji, the guy probably got promoted.

    No one is suggesting any fraud or anything on the part of APRIL, on the contrary, I am sure all audits came out fine – it is the SDL folks who screwed up.

    APRIL Natadola project director Keni Dakuidreketi has is own connections with Qarase and the other interim regime.

    But than again, I should not be complaining – what do I know about Fijian culture.

  4. RelaxMan Says:

    Yeps, well said again guys except for Kingrat!! really shows where he was bred and brought up from, the sewer at Kinoya!! come on old chap be constructive in your comments, it’s a good long four year wait for you at the sewer mate so you better be civilised and enjoy these fours years or you’ll either lose your sanity or die of old age, isa vakaloloma!!

  5. Kealoha Says:

    Budhau you so FULL OD SHIT!! Go wet yourself…idiot!! WTF do you know about the Project….

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