The Fiji Labour Party is calling on Fiji Airways to fully disclose the amount still owed on the $3m charter flight to Israel last year, and for those involved to stop fooling the Fijian people.
In a statement, FLP leader Mahendra Chaudhry demanded that the Fijian taxpayers had the right to know, after it failed to disclose the pending amounts owed in a recent statement, by the national airline.
The former Prime Minister said that the national carrier admitted that the charterers defaulted in its instalment payment that was already due in December.
However the sum owing was not disclosed.
“Our calculations show that the airline is still owed $2.5 million on the charter flights. This is aside from the $500,000 payment made before departure.”
“The airline entered into a deed of forbearance and guarantee with the charterer after it defaulted on a full payment of $2.5 million in September, three days before the flight to Israel.”
“Repayments were re-scheduled under the deed, with the first $700,000 due on December 2023. Fiji Airways admitted that WABS had defaulted on this payment as well.”
Chaudhry said the deed grants the charterer, WABS Pacific trading as Pacific Voyager, the immunity from default on payments till March 2024.
He said until then, the national carrier has undertaken to waive its right to take action against the defaulter.
“However, under clause five of the deed, WABS and its guarantors will be liable to a 20 per cent interest per annum, calculated daily from the due date, on the amount owed.”
The next payment is due this month of $900,000 and the final payment of another $900,000 is due in May.
Chaudhry said it seems apart from a $500,000 payment made before the flight took off, WABS has so far defaulted on every payment on due dates, before and after the deed.
“This is the company that Fiji Airways continues to maintain has a history of ‘making timely payments’. It says the Fiji Airways management and board of directors made an informed business judgement to proceed with the charter flights, the former prime minister said.
