The FijiFirst party, which is on the verge of deregistration, owes a Suva businessman over half a million dollars, making it the party’s highest outstanding debt to a creditor.
The businessman sought legal advice and action late last year after the party failed to pay, and the party has acknowledged that they owe him this much.
Despite appearing financially stable during their eight years in government with the support of prominent businesses in the country, an informed party member revealed that the outstanding debt was more than what was published in the audited accounts, indicating that the party may not have the financial capacity to pay its creditors.
The debt was expected to be voided because Voreqe Bainimarama and Aiyaz Sayed-Khaiyum, the two founding members who controlled the party’s affairs, had resigned, leaving the party with only about $10,000 in its bank account.
The businessman, who is the party’s largest creditor, has attributed the party’s financial instability to their recent election loss. He was under the impression that FijiFirst would continue to pay off its debts using the parliamentary allowance allocated to political parties.
However, as of December 31, 2023, the party’s financial resources were limited to a total of about $47,000, including a fixed-term deposit of $22,209 and $25,342 in cash.
Creditors can either write off the debt or take legal action to ensure payment, as the party was operating on a deficit of $701,680 and had only managed to clear $740,000 to their creditors from 2022.
