Wednesday, June 9, 2010

Province's $2.2m loan struggle

by Theresa Ralogaivau

Fiji Times - Wednesday, June 09, 2010
ITS struggle to pay off a $2.2m mortgage on Macuata House resulted in a financial committee of the province suggesting it seek the State's help to write off the loan with the Fiji Development Bank.
Finance committee chair Ravulolo Draunibaka said the province was paying more in loan repayments than what they earned from the rent of the building.
An initial loan of about $3.9m was taken to construct Macuata House in the 1990s.
"More than 10 years later we are still repaying a loan because of the principal and interest," he said.
"We receive about $20,000 rent a month, pay a bit more than that for loan repayments and usually left with $2000 to $3000 negative balance."
The finance committee came up with the proposal for the loan write-off, suggesting to the province's council meeting at Naravuka that if the State could write off the Momi loan then it can do the same for Macuata.
However, the motion was nullified when it reached the resolution stage after the Tui Macuata Ratu Aisea Katonivere said it wouldn't augur well for future financial commitments of the province.
"If we ask for a loan in the future the bank might not be so willing to support us because of our desire to write this off now," he said. "We have to continue with repayments and seek alternatives in securing cash for other capital projects."

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