9 Jun 2009

Fiji's retirement fund acts to recoup Momi Bay investment

1:36 pm on 9 June 2009

The Fiji National Provident Fund says it's looking to recoup millions it invested in the Momi Bay tourist development by taking possession preparing it for auction.

The FNFP is one of the major lenders in the development, with what is reported to be a 38 million US dollar investment in the project.

The Fund's chairman Parmesh Chand says it is exercising its right as mortgage holder as the loan has turned bad.

"That money belongs to the workers of Fiji who are members of the National Provident Fund. We had lent certain money in expectation that it would be repaid back as per schedule. Obviously that has not happened and we have to look at recourse to recoup that money."

However, the Fund's right to take possession is being disputed by developers, Matapo, and the receivers of New Zealand-based company, Bridgecorp, which which reportedly advanced 65 million dollars to Matapo.

Colin McCloy, from Bridgecorp's receivers, PricewaterhouseCoopers, says both they and Matapo are looking at taking legal action against the Fund.