Weleilakeba admits FHL Board was aware of Qarase's involvement in 3 companies that purchased FHL shares in 1991/1992

Sitiveni Weleilakeba, the former Fijian Holdings Limited Managing Director and Company Secretary, the second witness in the FICAC kangaroo trial of the legal and elected Prime Minister of Fiji, Laisenia Qarase was cross examined in a grueling session in the Suva High Court yesterday, Tuesday 9 July 2012 by lead defence counsel, Tupou Draunidalo.

The former FHL CEO Sitiveni Weleilakeba was grilled by PM Qarase’s defence counsel about the minutes he prepared for the FHL board since he joined FHL in 1987 as company secretary. Weleilakeba was asked in detail about the processes followed within FHL for the allotment or allocation of shares to Provincial Councils, Tikina Councils, Village investment companies, Private family companies and individual Fijians who applied for shares.

The small courtroom has been packed since the legal Prime Minister’s trial began on Thursday 5 July 2012. About 15 FICAC staff investigators and support staff have apparently been instructed to pack the benches which can only seat 25 people. FICAC staff arrive early wearing their shiny fake FICAC badges and brandishing their government diaries which have “FICAC” embossed in gold on the cover.

PM Qarase’s family members who arrive at 9.30 when the trial begins everyday are often left outside waiting for a chance to get in when someone leaves the room. But the evidence in this historic kangaroo trial is riveting and no one leaves.

The question has to be asked whether the FICAC staff have any work or whether they have been instructed by the illegal AG and Anti-Corruption Minister Aiyaz Khaiyum and the FICAC boss Colonel George Langman to come and fill up the benches during PM Qarase’s trial and prevent his family from observing, and to prevent the press, diplomats and other members of the public to attend the kangaroo trial.

When asked about whether he received any training for the position of company secretary which he took up in November 1987 at FHL, Weleilakeba confirmed that he received no specialised training to perform the functions of the company secretary. Weleilakeba’s only qualifications are a Bachelor of Agriculture and a Post Graduate Diploma in Agricultural Science from the University of the South Pacific. Prior to joining FHL, Weleilakeba was a manager at the failed Native Land Development Corporation (NLDC) and prior to that, he was an Agricultural Officer at the Ministry of Agriculture.

Questioned about the poor quality of the FHL Board minutes, which did not detail how each Director voted, Weleilakeba admitted that this was the practice at the time – and he simply followed the format that the then FHL Board Chairman, the now deceased Lyle Cupit wanted – that only the resolutions were to be listed, and not what each Director said about each resolution, or how they voted, whether they voted for or against, or abstained.

Weleilakeba admitted upon questioning yesterday by lead defence counsel Tupou Draunidalo, that he analysed each application for shares submitted to FHL in 1991 and 1992, the time period for which Qarase is alleged to have failed to have disclosed his interest in QTen, Mavana Investments and Cicia Cooperative Society. Weleilakeba admitted that he carried out company searches on the three entities, tabulated the list of shareholders and directors, and that was put together in a board paper presented to the FHL Board before it decided to allot shares to the three companies.

Having admitted that he knew PM Qarase’s wife, Mrs. Leba Qarase and at least one of Mr. Qarase’s children, Laisenia Junior, Weleilakeba said that he was aware after the company search on QTen, that it was owned by Mr. Qarase’s wife and children, but that Mr. Qarase was NOT a shareholder in QTen, and that this information was presented to the FHL Board by the Board Paper on Share Applications, as was the usual practice.

Weleilakeba also said that he recognised PM Qarase’s signature on the application on behalf of the three companies for shares in FHL and that this letter along with the results of the company search, the memorandum and articles of association, and his own tabulated list confirming the names of the shareholders and directors, were sent out to FHL Board members one week before the board meetings in question. Weleilakeba admitted that he had informed the Board of Qarase’s interest in the three companies.

When questioned further, Weleilakeba admitted that Qarase was not a shareholder in the three entities in question – Mavana Holdings was majority owned by the Mavana Village Trust and people of Mavana Village, Cicia Cooperative Society was owned by the 15 Mataqali on Cicia Island and QTen Investments was owned by Mrs. Leba Qarase and 5 Qarase children. PM Qarase was only a financial advisor to these three entities. In any case, his involvement in the three companies, was well known to the FHL Board, said Weleilakeba.

When questioned about the poor quality of the FHL Board minutes, which did not detail how each Director voted, Weleilakeba admitted that this was the practice at the time – and he simply followed the format that the then FHL Board Chairman, the now deceased Lyle Cupit wanted – that only the resolutions were to be listed, and not what each Director said about each resolution, or how they voted, whether they voted for or against, or abstained.

Weleilakeba also confirmed that at the time of the purchase of FHL Class A shares during this period (1991/1992), FHL was still a private company.

During his examination in chief on Friday 7 July 2012, Weleilakeba told FICAC lead counsel, Michael Blanchflower QC that he personally had an interest in FHL B Class shares, also purchased in 1992, through his company Stiks Investment and APTA Pacific Limited owned by his first wife Kelera Uluiviti and himself. Stiks and APTA together purchased 200,000 shares in FHL in 1992.

THE 1991/1992 B CLASS SHARE ALLOTMENTS

Yesterday inside the packed Suva High Court room, Weleilakeba admitted during cross examination that during the period in question,  the FAB and the GCC approved the extension of Class A shareholding to Tikina Councils, Indigenous Companies and Individuals. The FAB approved the request from the FHL Board in August 1991 and the GCC gave its approval in September 1991.

Weleilakeba confirmed that soon after, he wrote to all the Provincial Councils to inform them of the FAB and GCC decision. While the Provincial Councils already had $20m Class B shares through the FAB from the government $20m loan to FAB in 1989, Weleilakeba confirmed that some Provincial Councils and Tikina Councils purchased Class A shares. However Weleilakeba admitted that because it was a commercial entity, the FHL could not wait for all Provincial Councils to take up the remaining Class B shares, and so he travelled around the country to encourage individuals, Tikina and Villages to take up shares.

Once the momentum started, there was a rush by private companies to take up Class B shares. It was during this time that Mavana Investments, Cicia Cooperative Society and QTen investments, also applied and were allotted Class B shares, said Weleilakeba.