$33.5m write back on FNPF assets

25 Sunday Sep 2011

Posted by in Articles & Reports

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WHILE the write back on the Grand Pacific Hotel was $4.5million, it is understood the Fiji National Provident Fund (FNPF) sold its 75 per cent shareholding in the property at a much higher price.

This week the fund through its chief executive Aisake Taito announced a $33.5m write back on assets for the year ending June 2011.

The write back was also because of the revaluation of the Natadola InterContinental Hotel to $133m, an increase of $29m from the last valuation which had resulted in a $301m write -down on the property.

The FNPF sold 75 per cent of its shares in the Grand Pacific Hotel Limited to its new joint venture partners from Papua New Guinea – the National Superannuation Fund and Lamana Development Group.

“FNPF has recovered $4.5m from what was written down earlier in 2009 and the value of our 25 per cent shareholding in the new project should increase in future,” said Mr. Taito.

Mr Taito said the rehabilitation work for GPH was a two-staged process. The first, was the partial sale of the shares to the joint venture partners and the second was the redevelopment work for the new hotel which would commence soon.

He said that the outcome of the investment achievements was in addition to the other major reforms currently undertaken by the fund.

Ross McDonalds Response:

An article in the Fiji Sun of 15 September 2011 “$44.5m write back on FNPF assets”  following an announcement by FNPF CEO Mr Aisake Taito deserves comment. 

According to the article FNPF have written back $29m on the Natadola Intercontinental Hotel following their previous write down by $301m.  The write down was in line with a “valuation” of the property that had valued it at significantly under the FNPF book value. 

This raises questions about the “valuation” FNPF obtained.  Presumably FNPF are using fair market value.
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A Valued Explanation

22 Thursday Sep 2011

Posted by in Grey Power Editor

≈ 1 Comment

The question is what value are we talking about.  There is market value, insurance value, written down value, estimated value, book value, historical value, unimproved capital value, second hand value, realisable value etc etc ……………..and so the list goes on and these are all different values for different purposes.  Valuations may be a crafty calculation, one based on statistics, or purely an estimate, or best guess at the time. There are many many  ways to value, the list is endless.   These values are used for a variety of different purposes, consequently the long list of values for this, or value for that.  

A good example is  market value which most of us think we understand.  Whist you may get a market valuation from a valuer for your property which is his best estimate based on what is happening in the market,  the real market  value is what you can sell the asset for, that is what someone will pay you for the property, which may be very different from the valuation you have been given. It can be more, it can be less, it may depend on who wants to buy, or it may depend on how hard you bargain, it also depends very much on whether you are buying or selling and a myriad of other reasons..
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We are pleased to report…..

22 Thursday Sep 2011

Posted by in Grey Power Editor, Letters

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We are pleased to report that Grey-power was able to pull a string and somebody, not without influence, took a copy of the Vodafone ad offering an appalling game titled ‘Suicidal Squirrels’ to a Vodafone big-wig who was extremely unhappy about it. 

Vodafone will now ‘investigate’ the game and withdraw it. But this begs the question of who is ultimately responsible for game sponsorship. A Vodaphone employee found and promoted the game. It was advertised for downloading. 

That game, and doubtless countless others, promoted cruelty to animals and suicide – that is the bottom line. And it is not we, the silver surfers of this world who are responsible for the violent games and movies available to young people today. It is supposedly sensible, educated people within the workforce of the game invention organisations who are promoting this mindless mayhem. Young people take it on board because they assume it is ‘cool’!
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Vodafone Sick Promotion

19 Monday Sep 2011

Posted by in Grey Power Editor, Letters

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Saturday September 17th 2011, I was reading the Sun newspaper. As I was turning page 23 from right to left the word ‘suicide’ caught my eye. I turned the page back, and this is what I saw. A full page Vodafone ad.

‘Suicidal Squirrels They’re cute! They’re adorable! And they’re having enough of it all! Your mission is to help lots and lots of Squirrels kill themselves.’ The ad is not even good English!

Apparently this is one of many ‘Top Java Games’ and you can download it by texting its code to 4444.

Grey power people, please – we need to use our hard-earned wisdom to fight this kind of child abuse and all other kinds of child abuse. We need to add the fight against this abomination to the fight for our rights to respect, self-reliance and dignity. While we fight for our right to a dignified old age, we must fight for the right of the child to innocence. It is our duty to protect our grand-children from the mindless profiteering of mobile phone and video gaming interests.

Young people world-wide are committing suicide. Kids as young as eleven years old are killing themselves!

Oh – so it’s only squirrels? What about respect for innocent animals? It is a well documented fact that kids who kill animals for pleasure grow up to kill their fellow human beings.

Enough is enough! We, the older generation, the intelligent and wise, need to put an end to the current mind-set of gratuitous violence.

Copy-cat killings are on the rise. Copy-cat suicides are common. Our young are disenchanted enough already with the way we are running the world, without being invited to join in a game to help squirrels commit suicide.

We must demand that Vodafone withdraw this download immediately

‘No decision yet on pension review: FNPF’

16 Friday Sep 2011

Posted by in Articles & Reports, Grey Power Editor

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Greypower Commentary on the Fiji Sun article 15 September 2011  ‘No decision yet on pension review: FNPF’

Greypower supporters of the Burness v FNPF and AG case currently before the courts read the Fiji Sun story report on 15th September  that there had been ‘no decision yet on pension review’ with absolute amazement.

In one breath, in the same article, not to mention consistently in expensive advertisements, FNPF states that ‘no decision has been reached yet’  and  FNPF has ‘undertaken pension reform’. Now what does this mean? Either FNPF has not taken a decision (which means it may not happen) or they have ‘undertaken reform’ which means that it has happened already.

We cannot blame the Fiji Sun reporting for this contradictory information in the same story (editor Peter Lomas is a journalist so he is not likely to have got the language and expression wrong in his newspaper- or is he?).

Greypower gives a very clear message to FNPF- Do not say that you have ‘not reached a decision’, and at the same time say you have ‘undertaken pension reform’. Such inconsistent statements make you sound even more incompetent than normal.

Greypower also thinks this is a very sinister type of reporting.  This type of news released by FNPF is to try and influence the court in the Burness case that his and other pensioners’ applications should not be heard.  

FNPF and Government must really think pensioners are stupid and cannot see through their subterfuge. Worse, through these repeatedly contradictory articles, what are they telling the court through the back-door method of employing the media?  What a bunch!
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Tender Moments

16 Friday Sep 2011

Posted by in Daily Humour

≈ 1 Comment

A woman’s husband had been slipping in and out of a coma for several months, yet she had stayed by his bedside every single day. 

One day when he came to, he motioned for her to come nearer …..

As she sat by him, he whispered, eyes full of tears, ‘You know what?
You have been with me all through the bad times. 

When I got fired, you were there to support me. 
When my business failed, you were there. 

When I got shot, you were by my side. 
When we lost the house, you stayed right here.
When my health started failing, you were still by my side…

You know what Martha?’

‘What dear?’ she gently asked, smiling as her heart began to fill with warmth.

‘I’m beginning to think you’re bad luck…

 

Scotch with two drops of water

15 Thursday Sep 2011

Posted by in Daily Humour

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A lady goes to the bar on a cruise ship and orders a Scotch with two drops of water.  As the bartender gives her the drink she says, ‘I’m on this cruise to celebrate my 80th birthday and it’s today..’

The bartender says, ‘Well, since it’s your birthday, I’ll buy you a drink.  In fact, this one is on me.’

As the woman finishes her drink, the woman to her right says, ‘I would like to buy you a drink, too.’

The old woman says,  ‘Thank you. Bartender, I want a Scotch with two drops of water.’

‘Coming up,’ says the bartender.

As she finishes that drink, the man to her left says, ‘I would like to buy you one, too.’

The old woman says, ‘Thank you.  Bartender, I want another Scotch with two drops of water.’

‘Coming right up,’ the bartender says.

As he gives her the drink, he says, ‘Ma’am, I’m dying of curiosity.  Why the Scotch with only two drops of water?’

The old woman replies, ‘Sonny, when you’re my age, you’ve learned how to hold your liquor.  Holding your water, however, is a whole other issue.’

Pensioners ‘bear brunt of rises in cost of living’

15 Thursday Sep 2011

Posted by in Articles & Reports

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Economists say that the elderly face a higher rate of inflation than younger people, this is particularly true in Fiji where Pensions are not cost of living indexed.
As a result they are NEVER increased, regardless of devaluations of our currency and consistent increases in the cost of food, power, gas, fuel and water.

Not only does the Think Tank (term used very loosely) of the FNPF fail to take this into account, they continually compound their error by wasting money on full page colour advertisements in the press, attempting to justify a cut of 64% in existing pensions, which is a blatant misuse of the pensioners funds.
Greybeard 

“FNPF to Write Back $33.5 Million through Investment Rehabilitation.”

15 Thursday Sep 2011

Posted by in Letters

≈ 8 Comments

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