27 Jul 2009

Economist says Fiji's pension fund escapes foolish deal

7:13 pm on 27 July 2009

A Fiji economist says the country's pension fund has been saved from being forced to invest in a foolish bid.

Fijian Holdings Limited has announced in a statement that it will not aquire BP Southwest Pacific after failing to secure funds.

It says both parties agreed to end the sale agreement signed in December last year, adding BP will fully return an original deposit.

The University of the South Pacific's Dr Wadan Narsey says he's glad the deal has fallen over.

"The military government had taken control of the board of the Fiji National Provident Fund and they had been trying to force the fund to lend 190 million dollars to Fiji Holdings Limited to finance their bid. Now that the deal is not going through, I'm happy about it, because it means that our Provident Fund won't be forking money out for that very foolish bid."