The I-taukei Affairs Board will not distribute dividends it receives from Fijian Holdings Limited to the 14 provinces.
Instead the dividends will now be utilized to pay off a $20m loan from the company over eight to 10 years.
Deputy Permanent Secretary, Colonel Apakuki Kurusiga, said the loan was acquired to repay a Government loan of equivalent to the amount that was obtained in 1989 by the Fijian Affairs Board so that it could purchase shares in FHL.
In 2001, the Qarase government converted the loan into a grant but that decision was rescinded with a cabinet decision this year requiring the board to pay back the money.
Col. Kurusiga said the Itaukei Affairs Board is the owner of the shares and has the discretion not to release the dividends to the yasana's.
He added that they have asked FHL to seek more profitable companies both locally and aboard to invest in, so that it can earn more income to shorten the loan term.
He said the rate of dividends they have been receiving is about $2m a year, so by the eighth year they should be able to pay off the loan.
The dividends B of about $71,000 for each province B was used for projects.
Col. Kurusiga also said they administer the dividends and hold it under requisition then release it when they need the money for projects.
Story by: Ronal Deo
Source: Ministry of Information
