Issue No: 727; 3 May 2001

An advertisement in yesterday's Fiji Times states that the International Accounting firm PricewaterhouseCoopers has appointed receivers for the Valebasoga Tropicboard Limited with effect from 1 May 2001. The ad asks creditors to contact the receivers and advises suppliers to not to supply the company goods or services without the authorisation of the receivers.

The media reports that the Fiji Development Bank is owed a lot of money by the company. On Tuesday staff of the Bank, together with bailiffs and security guards hired by the receivers entered the company premises in Labasa and tried to take over the running of the firm. But workers confronted the receivers' team because they were told that the receivers were going to sack the workers. Labasa police intervened and took 15 guards and agents of the Bank and receivers for questioning.

The company is owned by Bahadur Ali who last year was interrogated by the police for financing the takeover of the Labasa military barracks.

It is understood that Ali wanted a tax-free factory status for a water bottling plant he had established in Ba. The People's Coalition Government had suspended the granting of any more tax-free factory status after a review by the World Bank found that the system was open to abuse. It is also understood that Ali, who has massive interests in timber, is a close supporter of the terrorist George Speight. Speight was the Chairman of the Fiji Hardwood Corporation, and was on the Board of the Fiji Pine Commission as well. Ali's water plant reportedly planned to use land where Fiji Pine had interests. The water plant is still not operational.