Issue No: 606; 20 March 2001

By rejecting the decision of the Fiji Court of Appeal, and by continuing to violate the laws of the land, the Qarase regime has sealed Fiji's fate as one where there is no respect for law and order and investments are risky.

Numerous investors have stated that as they were awaiting the response of the ethnic Fijian elite to the court decision, they had put their investment plans on hold. But now that they have seen the response, they will no longer invest in Fiji.

Since coming into power not a single major new investment has started in Fiji. Now even small investments have been taken off the shelves.

Media also reports the Fiji Trade and Investment Board as saying that investment is not taking place because of political instability in the country. In the same breadth, however, the Chief Executive of the FTIB also defended Qarase's hold onto power. But this defence can be explained in terms of the CEO's personal interest. The CEO, Jesoni Vitusaqavulu, has been one of the major beneficiaries of the corruption scandal involving the Fijian Holdings Ltd and the Fiji Development Bank. Qarase was the Managing Director of the Development bank for many years. (see: http://www.pcgov.org.fj/docs_c/fijian_holdings_fdb_details.htm )

Media reports that more factories are closing. The large Forum Shoes factory has already closed its Ba plant. And it has reduced the number of workers in its Lautoka plants. Another major factory is facing closure.

Tourist arrivals have continued to remain extremely low. This is despite the many millions which the regime and the industry have spent on promotions abroad. Today's
Fiji Times also states the Fiji Hotel Association as saying that tourist bookings have declined.