Tuesday, April 3, 2007

The Sugar Loan That Kinda Stinks...

The newly installed Fiji Sugar Cane Growers Council wasted no time making their presence felt.

In a blitzkrieg, the new chairman Jain Kumar took out a $6.4 million loan for the farmers... remember that...for the farmers. The loan, was to be paid back in 2 months, at an interest rate of 6%. I'm assuming that the interest rate is a per-annum one.

Now the Fiji Cane Growers Association is yelling about the fact that the decision to take out the loan was made arbitrarily by the Council Chairman. Of course, with one of his lackeys under fire, "Uncle Mahen" had to come to the rescue. See Fiji TV's 6pm news on Tuesday 03/04/07 clip titled "Farmers loan" to hear the serpent hissing.

Now in all the hoopla, I started thinking about one thing that struck me as odd. If an interest rate of 6% is applied to a loan of $6.4 million, wouldn't the interest over 2 months come to around $65,000 ? That is my own calculation, for those of you who are more financially learned than yours truly, please calculate the actual amount and enlighten us in the comments section after this post or by emailing me.

If my calculations are correct, then as the media quotes the SCGC Chairman as saying that the interest will amount to approximately $96,000, my question is:


There is a difference of around $35,000 in question. For those of you readers overseas, in Fiji, that is the yearly salary of most middle management positions. It's a sizable amount of money, and I hope sincerely that I am wrong in my calculations.

Because if I'm correct, the corruption is still spreading, and the carrier is the same group claiming to be the cure.

God, Please help Fiji.


Anonymous said...

hey good point! What ever happened to investigative journalism at Fiji TV ONE? It's bad enough we have to watch the news about Bainim*** read out by his nephew with a smile on his face!

And now Mahen is in charge of the country's coffer - where do you think that will go !?

When Mahen was PM last time, first thing he did was renovate HIS OWN HOUSE with OUR MONEY!! And he made it legal by saying that the constitution stated "Prim Minister's residence, and since he refused to shift to the govt quarters his house become the PM residence!"

Please people, lets DO SOMETHING!!

Anonymous said...

In this coalition of the greedy that we have got called the Interim Government, the Labour people have positioned themselves where the big money is, such as Fiji Sports Council, Natadola Project, Ministry of Finance ,Sugar Industry, Agriculture. They like us to think that they are doing a better job of looking after our money. Puh-leese, the citizens of Fiji would have voted you into govt if they thought that.

Doing said...

To Commenter# 1, I invite you ( and any others for that matter) to join us. Sign up to stand against the IG by emailing us at mawdsomething@gmail.com

Anonymous said...

Why isnt Nasir Ali and his anti corruption unit jumping up and down over this one....oh thats right they are on the same team.