A board member of Fiji Pine Limited, Ratu Osea Gavidi, has criticised a US$9.4 million loan made to the company by the Fiji National Provident Fund.
The Fiji Sun reports that the loan, which has been guaranteed by the government, will be used to refinance existing loans including one from the European Investment bank.
Ratu Osea says the loan was to enable the government "to try and save a sinking ship that has been running at loss because it has been subsidising Tropik Wood Limited by selling logs cheaply."
Ratu Osea says the majority shareholders of Tropik Wood, formerly managed by the minister for forests Konisi Yabaki, are foreigners while the government and indigenous landowners have minimal shares."
Ratu Osea says pine landowners have been involved in the planting, logging, and cartage of pine logs but until now they have never received any dividends.
Ratu Osea said he is "a board member of Fiji Pine Limited but it is useless."
