Mr. Aisake Taito goes on to state in the FNPF website news release dated 14th September 2011 : 

FNPF Chief Executive Officer, Mr. Aisake Taito, said the write-back is the outcome of two major investment rehabilitation projects – the revaluation of Natadola Inter-continental Hotel and the sale of majority shares in Grand Pacific Hotel Limited. 

One must be extremely desperate to make such a claim. Is it to win back lost credibility and convince members (including pensioners) that the FNPF, CEO and Directors are doing a fantastic job in rehabilitating the troubled investments? Claiming credit where it is not due is extremely damaging to one’s credibility 

$29m (or 87%) of the $33.5m write back is related to the Natadola Intercontinental Hotel, golf course and residential development. 

  • Has the residential development contributed to the write back? It is unlikely that any work has commenced that would add value. 
  • To claim that investment rehabilitation has taken place in regard to the Natadola Intercontinental Hotel, we need to ask what work Mr. Aisake has performed to remedy, cure and restore to effectiveness. 

I presume that he or his subordinate would have signed a purchase order to contract the two consultants (one is not sufficient but two is a waste of money) to conduct a valuation of the hotel. If one considers that this is rehabilitation, it is a joke.  

The valuation report is a bi-annual requirement normally spelled out in most bank loan agreements. In addition, it is an International Financial Reporting Standard that requires that assets shown in financial reports are at market value. 

The valuation of a hotel is normally based on discounted cash flow analysis and capitalization analysis. The hotel has been trading for some two years and the operating results (occupancies, average room rates, food and beverage revenues and efficiency) have improved, hence increased earnings and cash flow resulting in the increased valuation of the Hotel. 

If we are to assign credit, it should be to past management and directors that have decided to invest in the hotel industry that Mr. Aisake has so often and vigorously maligned. 

Returns on this type of investment are long term. However, if Mr. Aisake really wants to get involved with rehabilitation, please role up your sleeves, progress and complete the Momi hotel development (as the asset is corroding and its value deteriorating rapidly instead of earning an income ) and the golf course and club house so that the freehold residential land can be sold. This is rehabilitation and it needs balls! 

So please stop wasting FNPF time and money on needless paid advertisements/news releases and earn back your credibility by honoring your contract with pensioners and perform some real rehabilitation work. 

By an Apolitical Dying Pensioner

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