9 Apr 2008

Fiji's Finance Ministry is to take over management of lease deals

8:58 am on 9 April 2008

Fiji's Finance Ministry is to take over the management of lease deals after a decision by the interim Prime Minster to shift responsibility from the Public Service Commission.

There have been worries among provincial councils about the security of lease deals with government departments.

Negotiations have been reopened with several provincial development companies over the rent paid by government for office blocks built as investments.

Our correspondent in Suva, Matelita Ragogo says payment delays and re-negotiations over rent agreements has left some provincial councils fearing they will not be able to pay back loans:

"The provincial councils stopped getting their rent and when they stopped getting rent obviously they are now defaulting on repayments to financial institutions that supported them and basically they are not getting anymore funds."

Suva correspondent, Matelita Ragogo.

The Chairman of the Namosi Provincial Development Company, Kiniviliame Taukeinikoro, told Radio New Zealand International he hoped the issues over Namosi House, which is occupied by the Ministry of Health, would be settled soon.