22 May 2002

Fiji Sugar Corporation struggling for funds

2:39 pm on 22 May 2002

The Fiji Sugar Corporation is running out of funds for survival and wants a recent government loan guarantee for 33-million US dollars charged into a grant.

The Fiji Times quoted industry leaders as saying the company cannot afford to repay the loan.

The company chairman, Hafiz Khan, has confirmed the state has provided a revolving fund the company can dip into.

But he could not say how the company would repay funds used from the revolving fund.

Company sources say the Corporation is in a desperate financial situation.

A delegation of sugar industry stakeholders has made representations to the finance ministry to considert the plight of the company and inject much-needed funds.

The report of the technical insolvency of the company comes just ahead of next month's start to the harvesting season.