7 Apr 2005

Calls for independent probe into Fiji Shipping

10:18 am on 7 April 2005

There are calls for an independent inquiry into the affairs of the state-owned Fiji Shipping Corporation.

The corporation is responsible for giving subsidies to companies to operate uneconomic outer island shipping services.

Those calling for an inquiry allege that the scheme is turning into a scam because the subsidies are being given to those who don't qualify for the awards.

The managing director of Paradise Shipping, which has been running services to the Lomaiviti Group for 6 years, Durga Prasad, says subsidies have been awarded to some companies which do not have ships or whose ships have not passed a marine survey.

The amounts vary between US$7,200 and US$4,000 a month, amounting to a total pay-out this year of over US$1 million.

The chief executive of the Fiji Shipping Corporation, Waqa Ledua, has confirmed the four of the companies awarded subsidies don't have any ships but they had produced all the required documents.