Lautoka, Fiji-The Fiji Sugar Corporation Ltd (FSC) categorically rejects the sensationalised claims made in Fiji Times dated 21st October 2024 headlined “Triple Up,” which incorrectly asserts that FSC directors’ allowances have tripled in 2024. This misleading report not only distorts the facts but also mischievously creates the impression that FSC’s directors may have acted deceitfully and irresponsibly to promote their own financial interests. By linking the issue to government guarantees, the report also implies that in doing so, the Directors have not considered the corporation’s current crippling financial position.
The innuendos are both baseless and damaging and unfairly question the integrity of the directors.
In the interests of the public, we share the following facts.
- No Increase in 2024
Contrary to the Fiji Times claims, there has been no increase in director’s allowances for 2024. The total amount paid to directors reflects the increase in the number of directors and not any increase per se in the quantum of allowances.
The last increase in directors allowances took place in January 2005, nearly 20 years ago This is confirmed by the independent audited accounts of FSC.
- 2023 Allowances Context
In 2023, only three out of six directors claimed their allowances, amounting to $24,000, one of whom alone claimed $8775.
Upon the inauguration of the current Coalition government, the Minister, as a matter of urgency, appointed the full Board of 9 directors as provided for under FSC’s Articles of Association. This had to be done given the seriously parlous state of FSC, its trajectory of further imperilment and the need to expeditiously address the legacy of historical mismanagement, mounting debts, wastages and collapsing governance failures.
Therefore, it is a totally invalid comparison to make claims without considering the reality of the differences in the size of the new 2024 board relative to 2023.
- 2024 Allowances Explained
The revival of the industry and its multiplicity of problems, ranging from production, transport, milling and finance, has required major effort and intervention by the Board. All the directors have demonstrated a level of commitment and dedication rarely seen in the last 51 years of its corporate existence. Unlike the previous Boards, the new directors are fiercely passionate and hands contributing actively in the field and our factories.
- Directors’ Expertise and Commitment
FSC directors include seven highly qualified full-time executives and two successful agricultural leaders. All of them are making considerable financial sacrifices to serve the corporation and the nation. Their proven skills and experience, dedication, and commitment directly benefit FSC and the sugar industry, providing strong leadership, proper governance and strategic direction.
These are no journeymen seeking self-enrichment.
- Increased Responsibilities in 2024
In 2024, the Board conducted 20 Board and subcommittee meetings, as well as a further at least 20 direct consultations with farmers and workers covering the entire cane belt. This is in stark contrast to the abject neglect of the previous two decades when farmers, workers and other stakeholders suffered unseen and unheard by the previous authorities.
- Lowest-Paid Directors in Fiji
According to the current Ministry of Public Enterprises guidelines, directors of all 26 state-owned enterprises receive allowances ranging from $10,000 to $17,000, while chairpersons earn between $15,000 and $30,000.
FSC’s director allowances, at $6445 per year, make them the lowest-paid directors in the country despite their significant responsibilities in the most important agricultural and economic sectors of the nation.
- Commitment to Fair Remuneration
FSC remains committed to responsible governance and transparency. Any future review of director remuneration will fully consider the Ministry’s recommendations, ensuring that decisions are made in the best interests of the corporation and its stakeholders.
- Call for Responsible Journalism
FSC urges all members of the media to uphold higher standards of journalism by ensuring that its reporting is factually accurate free from any wilful sensationalism and misleading imputations.
Such baseless claims and innuendos undermine public trust and confidence in the industry and detract from the important work being done by FSC’s Board to salvage it from the deep abyss of systemic mismanagement of the past.
FSC is committed to transparency, integrity, and accountability in its operations. We invite open dialogue and stand ready to address any concerns or questions from our stakeholders regarding our governance and director remuneration policies.
We recognise and respect our partnership with the nation and the media and welcome their scrutiny. We invite them to join us in this recovery mission in the interests of the nation.
In return, we ask for balance and fairness in their reporting and coverage.