Written by Margaret Wise
At least three of nine fishing vessels secured under a failed $4-million Fiji Development Bank and Government loan program, did not even go out to sea.
The loans were secured through the Seed Capital Revolving Fund, an affirmative action program established in 2002 to help indigenous Fijians and Rotumans.
While the FDB and Fisheries Department would not respond to questions sent three weeks ago, one of the vessel owners confirmed his vessel was seized before he could use it for fishing.
Ilimi Kurusiga, who had secured a $150,000 loan for the vessel Mana Iki, said he had obtained the boat in 2005 but it was seized earlier this year and auctioned for $17,000.
“The boat was certified as seaworthy but there was still a lot of repairs needed,†he said.
“I think it was unfair of the bank to give me the loan and use it under deep sea fishing license but refused another loan application of $180,000 because they said the SCARF loans were for long-line tuna fishing only,†he said. “I think the bank was wrong in not giving me the additional loan because that was needed to finish repairs.â€
He did not explain why it took three years to repair the vessel insisting that the focus should be on that he owned the boat after buying out the shares of foreign partners.
Fisheries officials have confirmed there was a 100 per cent failure in ventures that drew from SCARF to undertake tuna long-line fishing.
The FDB said it did not want to comment on SCARF projects. The bank said comments on past lending schemes, including SCARF, were contained in a two-page supplement on June 20.
Fisheries said it was still working on answers to queries sent more than a month ago.
As at March 2004, the project costs for nine successful applicants were put at close to $4m.
Most of the vessels, bought at prices ranging between $500,000 and $200,000 have been sold off for less than $30,000 per vessel. One vessel, the Sun 1, could only fetch $11,000 after the bank seized it because of non repayment of loan. Assessors for the Fisheries Department and the FDB had valued it at close to $300,000.
It has not been established how much was lost in SCARF funds diverted to help Fijians venturing into the tourism and forestry industries.
The Qarase Government initiated the SCARF program, with $4.5m provided in 2002.
The initiative aimed to help Fijians and Rotumans who were unable to meet the FDB's 35 per cent of the project cost equity contribution.
Successful applicants enjoyed an interest free loan for up to 25 per cent of the project cost.
Their equity contribution was limited to 10 per cent of the project cost and interest of the bank portion was charged at 8 per cent per annum.
Mana Iki berth at
