5 Dec 2005

India's High Commissioner to Fiji believes loan for sugar won't be derailed

4:15 pm on 5 December 2005

India's High Commissioner to Fiji says he cannot see a multi-million dollar loan from India's Exim bank for sugar reform being derailed by a controversy between politicians.

Labour senator, Anand Singh, has said he will go to court, if necessary, to receive payment for work he undertook in connection with the loan, worth 52 million U.S. dollars.

But, the prime minister, Laisenia Qarase, says it would be shameful if Mr Singh takes legal action against the government of India because it could affect the reform process.

The Indian high commissioner, Ajay Singh, says he doesn't know the details about the dispute but does not believe it will stop the loan from going ahead.

"I can't see any way that the loan from the Exim bank in India would be derailed. It's a loan between the bank and F.S.C., the Fiji Sugar Corporation - it's signed, initialled and all over. So, I can't see it being derailed in any manner, at any stage."

The high commissioner says he's unsure what the Labour senator is expecting money for but Anand Singh says he spent 18 months working on getting the loan in place and he's hoping to have further discussions with the commission this week.