10 July 2012

Appointment as Financial Advisor to the Fijian Affairs Board did NOT make PM Qarase a "public officer"

Six of the nine charges against the legal and elected Prime Minister of Fiji, Laisenia Qarase allege that he was a public officer at the time that three entities in which he was involved, purchased Class A shares in Fijian Holdings Limited. 




However evidence already presented in the Suva High Court on Thursday 5 July 2012 by Meli Bainimarama, who was Permanent Secretary for Fijian Affairs in 1991, shows that Qarase was not an employee of the FAB. 




Former FHL CEO Sitiveni Weleilakeba admitted during cross examination on Monday 9 July 2012 that Qarase was also not an employee of FHL. 





QARASE AS FINANCIAL ADVISOR TO THE FAB – NOT AN EMPLOYEE OR PUBLIC OFFICER


Qarase was appointed Financial Advisor to the FAB in 1981 and retired from the position in 1999. However he was not an employee of the FAB, merely an advisor who received a yearly allowance. He was employed full-time by the Fiji Development Bank as Managing Director.


In his position as Financial Advisor to the FAB, he did not have voting rights on the FAB, rather he was only an advisor who attended meetings on request. In fact, the FAB voting members are the Minister for Fijian Affairs who chairs the FAB, and other members appointed by the Great Council of Chiefs.


RFMF Commander Voreqe Bainimarama’s older brother, Meli Bainimarama, Ambassador to Malaysia and Permanent Secretary for Fijian Affairs at the relevant time gave evidence in court on Thursday July 5 that:

-the Chair of the FAB did not control how the Financial Advisor performed his role

-the line Minister or Minister for Fijian Affairs did not control how the Financial Advisor performed his role

-the Prime Minister did not control how the Financial Advisor performed his role

-the Financial Advisor was not paid a pension or FNPF by FAB

-the Financial Advisor did not have any insurance or holiday or leave entitlement from FAB

-the Financial Advisor was appointed, and not on a formal contract

In other words, Meli Bainimarama confirmed that Qarase was not an employee of the FAB, and therefore not a Public Officer, as alleged in the abuse of office charges laid by FICAC. 


The question has to be asked – should Meli Bainimarama be prevented from appointment by the Public Service Commission (PSC) as Ambassador to Malaysia just because his younger brother Voreqe is holding the position of Minister for PSC?



PM QARASE AS FHL DIRECTOR – NOT AN FHL EMPLOYEE


In his cross examination evidence on Monday 9 July, Sitiveni Weleilakeba, the former FHL CEO confirmed that Qarase, like the other FHL Directors:

- did not receive a salary, 
- received Director’s fees only, 
- did not get leave entitlements like employees. 

Weleilakeba told the court that FHL deducted witholding tax from Director’s fees, not PAYE income tax like salaried employees.


This goes towards proving that Qarase was not a public officer at the relevant time, as alleged in 6 of the 9 charges laid by FICAC. 


In addition because FHL was a private company, Qarase committed no crime – the FHL Directors were aware of his advisory role in QTen, Cicia and Mavana Investments. 


In fact, the purchase of shares by private companies and individuals, was exactly the aim of the affirmative action program (approved by the government of that time, modelled on the Malaysian affirmative action program) to increase Fijian involvement in business. 


See below Lyle Cupit’s views that all was above board in relation to the 1991/1992 purchase of shares by private companies and individuals.

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