Deputy Prime Minister and Minister for Civil Aviation Viliame Gavoka has debunked the idea that Waqavuka Financing Limited belongs to one family, because it does not.
Speaking to FijiLive, Gavoka said that Waqavuka is a special purpose company which is owned by a security agent on behalf of the European Export Credit Agency, which had provided the guarantee on the loans and the German banks that have funded the purchase of the three planes.
“The German Bank does not directly deal with Fiji. They deal with people they know and trust. Fiji had gone to the European Union in this case.”
The Deputy Prime Minister said any airline that intends to purchase or lease aircraft undertakes the similar processes.
Gavoka said that Boeing does not directly deal with individual governments to acquire an aircraft.
He also said that the investigations into Waqavuka Financing Limited by the Criminal Investigations Department are going nowhere.
Earlier, this year, Police said a report against Waqavuka Holdings in relation to alleged fraud was lodged.
Acting Commissioner of Police, Juki Fong Chew had stated that the investigation is in its initial stages and the CID is investigating it.
Fiji Airways Managing Director and CEO, Andre Viljoen had said in August 2020 that Waqavuka Financing Limited was formed for the securitization that the European Export Credit Agency required over the three A330s purchased by the national airline as the insurance companies are guaranteeing the loans taken from the German banks until they are fully repaid.
Viljoen said the planes are not manufactured and put on a showroom floor, firstly because the specifications are unique to every airline and secondly in normal times there is a long waiting list.
He said it is very difficult to obtain finance because there is no asset to secure the finance, and you typically have to take it out of your own cash.
Viljoen had stated that very few airlines have the cash to pay those 20 per cent deposits on the new planes, and that is why very few airlines buy aircraft.
He had said the cheapest way of buying or acquiring an aircraft is purchasing, but you have to pay 20 per cent deposit down.
“On delivery, you have to finance the remaining 80 per cent, and there are very few banks that will finance 80 per cent of an aircraft.”
