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Fiji Budget: Major spendings and projects

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The Fijian government has announced its ‘rebuilding our future together’ Budget with a spend of $FJ4.3 billion to address the high cost of living and pay for the hefty bill racked up by the former FijiFirst administration and the global pandemic, coupled with multiple tropical cyclones, and the effects of Russia’s war on Ukraine.

Deputy Prime Miminster and Minister of Finance Biman Prasad said the focus of the budget is navigate the country from its economic crisis to provide a better standard of living for its people.

Prasad said the deficit is higher than he wanted and nearly 25 percent of the budget will go to servicing debt.

“We have too much government debt for the size of our economy and that remains one of our biggest challenges. We must continue to carefully manage our revenue spending.”

He said the budget “stabilises revenue and debt level and puts the country on a sustainable path”.

Financial Summary

Total government expenditure for the 2023/2024 Budget is $4.3b with a projected revenue of $3.7b – a deficit of $639 million. Fiji starts July with a debt-to-GDP ratio of almost 88.8 pecent.

Increases

-Value Added Tax increases to 15 percent on most food, with the intension to pump an estimated $446m into the economy.

-5 percent increase to the excise tax on alcohol and tobacco.

-The excise on carbonated/ sugar-sweetened beverages will be increased from 35 cents per litre to 40 cents per litre.

-A domestic excise of 40c per kilogram or per litre, and import excise of 15 percent, will be introduced on carbonated drinks, ice cream, sweet biscuits, snacks, and sugar confectionery.

-Motor vehicle import excise duty will increase on all new and used passenger vehicles by an additional 5 percent.

-The corporate tax rate will increase from the current 20 percent to 25 percent.

-New companies eligible for reduced corporate tax for listing on the South Pacific Stock Exchange will have their tax rate increased from the current 10 percent to 15 percent. This will be for new companies and only for a period of seven years. These corporate tax rate increases will add about $73.5m in revenue.

-Departure Tax will increase from the current $100 to $125 effective from August 1 and will further increase by an additional $15 to $140 effective from January 1, 2024. This will add a total of $30m towards overall tax revenues.

Reductions

-21 basic food items continue to attract zero VAT with the inclusion of prescribed medicine to the list.

-Reduction in fiscal duty from 32 percent to 15 percent on canned mackerel (except canned tuna), corned mutton, corned beef and beef products, canned tomatoes, prawns and duck meat.

-Fiscal duty on sheep/lamb meats will be reduced to zero. For beef meat the duty is being reduced from 32 percent to 15 percent.

-Reduction in import excise on chicken portions such as wings, drumsticks, feet, thighs, etc from 15 percent to 0 percent.

-Concession on smartphones will be removed and replaced with a fiscal duty of 5 percent.

Education

-Education gets the highest allocation in this budget – $845m.

-Biman Prasad announced all Tertiary Scholarship and Loans Service debt – $650m owed by more than 50,000 students – is written off. But it comes with the caveat that these students will have to save a bond. The bond savings will be years of study multiplied by 1.5, and those who choose not to save the bond will have to pay the equivalent cost amount.

-The rebranded Fijian scholarship scheme will have a total budget of $148.2m.

-The salaries budget for the Ministry of Education increased to $322.6m, to cover existing teachers and 179 new teaching and non-teaching positions.

-There is $8.9m for salary upgrades for teachers completing qualifications for higher pay.

-$5.7m for the rural and maritime teaching allowance budget.

-Free education and transport assistance to ECE, primary and secondary school students, with a total funding allocation of more than $100m.

-There is also money for back to school support, and maintenance and upgrading of schools.

-Investment in the technical colleges, working together with existing service providers, including the newly established Pacific Polytech.

-A revamp the apprenticeship scheme in the next few months and also review the NTPC Levy and how best to support and fund skill upgrades in the workforce.

-Tertiary institutions get $103.3m, the grant for the University of the South Pacific is restored, and they have allocated extra money towards clearing the USP outstanding grants.

-There is also an extra $500,000 for Sangam Institute of Technology to accommodate additional nursing students, “in light of the current shortage”.

Health and disability

-Health Ministry is allocated a budget of $453.8m, a significant increase of $58.7m from the previous budget.

-Salaries and wages budget for the Health Ministry has increased to $126.4m.

-This will cater for 250 intern nurses to move up to become registered nurses; 237 new intern nurses; 46 nursing assistants; 50 nursing aides; 40 midwives; 94 medical laboratory scientists; and additional support staff in various hospitals and non-medical officers for the Fiji Pharmaceutical & Biomedical Services to strengthen capacity and improve procurement efficiency.

-Nursing assistant and nurse aide positions have been created to support the nurses’ focus on their core role, where these aides and assistants will take over the non-clinical responsibilities like making the bed, getting the consumables etc. The government is also providing $11.6m for the upgrade of nurses’ salaries and overtime.

-$63m has been allocated for public health programmes, Emergency Radiology and Laboratory Services, procurement of drugs, consumables, medicines, and purchase of bio-medical equipment and accessories.

-$2.5m is allocated for the Kidney Dialysis Treatment Subsidy. The allocation has been increased by $1m from this year’s level to cater for the increase in the dialysis subsidy from the current $150 per session to $180.

-$16.4m is allocated for the upgrade and maintenance of urban hospitals and institutional quarters, permanent walkway for the maternity hospital at CWM, purchase, installation and replacement of ICT equipment, and a major interior upgrade of Labasa hospital.

-From August 1, only patients with a combined household income of $30,000 or less per annum can qualify for the free services at private practitioners.

Tourism

-Tourism Fiji is allocated an operating grant of $7m and to support new marketing strategies an increased Marketing Grant of $30m is provided in the new financial year.

Infrastructure, Road, and Water

– $200m has been allocated for the maintenance of hospitals, health centres, schools, public buildings, government quarters, roads and bridges and water infrastructure.

-The water sector will have an increased budget of $250.8m. This is a major increase of almost $60m compared to the current budget.

-$51.2m has been allocated for the completion of the Viria water project. The total cost of the project is approximately $400m.

-Government is working with the Asian Development Bank for a major institutional revamp of the Water Authority, including governance, investment planning, asset management, infrastructure replacement and upgrade, review of water tariffs, investment in people and improving customer service management. This will cost over $500m to replace the 40-year-old pipe system which is leaking underground.

– An increased allocation of $100.6m is allocated for road maintenance.

-Fiji Roads Authority is allocated a budget of $387.6m which comprises $14.7m for operations and $372.9m for capital expenditure.

-In the last eight years, a total of around $3.1b was spent by the road authority without any strategic plan, without much priority and without proper costing.

-$82.2m for the Transport Infrastructure Investment Sector Project financed through Asian Development Bank and World Bank loans of US$100m and US$50m, respectively.

-Public Works, Meteorological Service and Transport Ministry is allocated a sum of $98.3m.

-Government has also re-established the Public Works Department (PWD) to improve the state of rural roads around the country with an initial setup cost of $5m.

Social welfare and Pension

-Ministry of Women, Children and Social Protection fundng allocation has increased from $147.7m to $200.2m.

-More than 90,000 thousand people on social welfare will directly benefit from increased monthly allowances of 15 and 25 percent.

-$100,000 is allocated to cater for the establishment of a new Department of Children.

-$19.9m has been allocated for the Child Protection Allowance. This is an increase of $6.2m.

-The Family Assistance Scheme is allocated a budget of $45.6m. This is an increase of $11.5m from the current financial year. A total of 26,000 households are expected to be assisted in this financial year.

-$43million is allocated to cater for disability allowance, bus fare subsidy for elderly and disabled, electricity subsidy to households below $30,000 income and insurance for social welfare recipients. Over 100,000 people are expected to benefit from this.

-Those aged 70 years and above, and on the social pension system, will receive a 25 percent increase in allowances. This means the monthly allowance will increase from $100 a month to $125 a month effective August 2023. Those between the age of 65 to 69 years will have their monthly allowances increased from $100 to $115.

-The social pension scheme is allocated a large budget of $78.2m, an increase of $23.2m to cater for the needs of 54,200 senior citizens.

-Effective from August 2023, the 1,500 FNPF pensioners who had their pension rates reduced by the military regime will be able to access the Government social pension allowance of $125 if they are above the age of 70 or $115 if they are between 60 to 69 years.

Civil service and cutbacks

-Review of the current minimum wage rate to be done in the next financial year.

-The government is working together with the workers’ representatives to review the overall pay and benefits of the civil servants.

– In the next six to nine months, government will review the civil service remuneration and pending the review, the salary structure of the civil service will be readjusted to be commensurate with the work the civil servants are doing for the nation.

-Government ministers have taken a 20 percent pay cut; they are significantly cutting down ministerial travel allowances put in place by the previous government.

-Travel allowance of the Prime Minister, the current 250 percent per diem loading, will be reduced to 100 percent.

– Ministers will have their top-up reduced from 200 percent to 50 percent.

– For assistant ministers the top-up will be reduced from the current 100 percent to 25 percent.

– Apart from these major reductions, Government will remove “all the exorbitant incidental allowances that are currently provided”.

Culture and arts

-Ministry of iTaukei Affairs, Culture, Heritage and Arts has been allocated a budget of $38.6m, a major increase of $23.2m from this year’s allocation

-To strengthen iTaukei administration and provincial councils, a grant of $10.8m is allocated to fund the 14 provincial councils, including $4.3m to fund the salaries and wages of 182 provincial council officers and other operational expenses of around $6.1 million.

-The Turaga-ni-Koro monthly allowance will be increased from $100 to $150 per month for all 1,181 Turaga-ni-Koro for which a total sum of $2.1 million is allocated.

-The Mata-ni-Tikina quarterly allowance will be increased by $150 per quarter, which is equivalent to an increase of $50 per month for the 262 Mata-ni-Tikina.

-$4m is allocated for iTaukei Land Development to help landowners with the development of their land for commercial purposes.

-To recognise and support the Turaga-ni-Yavusa in decision-making and Vanua administration, a monthly allowance of $100 has been allocated for 648 Turaga-ni-Yavusa under the Vanua Leadership Allowance with a sum of around $800,000.

Agriculture and Sugar

-Ministry of Agriculture and Waterways is allocated a budget of $95.2 million in this budget which is an increase of $37.3 million.

– For the first time, the government will be providing weedicide and fertilizer subsidy for non-sugar crops which includes rice, ginger, dalo, and cassava, with a funding of $1m to boost production of these crops.

– The Ministry of Multi-Ethnic Affairs and Sugar Industry is allocated a sum of $51.7m in the new financial year, of which $49.7m is for the sugar unit.

-With the aim to increase cane production from current production of 1.6m tonnes to 1.9m tonnes by 2024 season, a sum of $11m is allocated for the Sugar Development and Farmers Assistance Program, New Farmers and Lease Premium Assistance, Weedicide Subsidy, Farm Incentive Program and Cage Bins.

Fisheries, Land and SME

-Ministry of Fisheries and Forestry is allocated a budget of $41.6m. This will support the expansion of aquaculture, shrimp farming, seaweed Development Programme, Multi-Species Hatchery, construction of ice plants and the supply of tilapia fingerlings and prawn frys to farmers in the Western Division.

-Ministry of Lands and Mineral Resources is allocated a budget of $30.1m to enable the Ministry to continue effectively and efficiently administer and regulate the land and mineral resource sector

-Ministry of Trade, Co-operatives & Small Medium Enterprises and Communications is allocated a budget of $116.5m in the next financial year, an increase of $25.3m from this year’s allocation.

Source  RNZ

 

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Fiji News

Fiji ‘worse off today’, former PM warns, as Rabuka’s constitution overhaul faces backlash

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Mahendra Chaudhry, Fiji’s first and only prime minister of Indian descent, has warned that the island nation is “worse off today than we were at independence” and that its political leadership must focus on solving social and economic issues rather than “making multiple constitutions”.

Chaudhry made the comments over the weekend while making a submission to a special parliamentary committee – led by Prime Minister Sitiveni Rabuka – on the country’s constitutional reform process in Vanua Levu, Fiji’s second main island.

“Are we doing enough to alleviate the problems that we face as a nation that our people face, problems of poverty, hunger, unemployment, poor health services, education problems, crumbling infrastructure, the invasion by drug traffickers, HIV, NCDs (non-communicable diseases)?

“Is the economy delivering to the people? Are we giving sufficient attention to the economic problems that the nation faces? Because you can do nothing on the back of a failing economy.

“These are areas where our attention should be focused,” the former prime minister, whose government was held hostage at gunpoint for 56 days during the 2000 ethno-nationalist coup, said.

Sitiveni Rabuka and Mahnedra Chaudhry embrace at the reconciliation church service on 14 May 2023.
Mahendra Chaudhry, right, embraces Sitiveni Rabuka during a reconciliation church service on 14 May 2023.

Fiji Government

Rabuka’s coalition has made it its mission to replace the 2013 Constitution – widely criticised as being imposed by the previous Bainimarama administration – ahead of a looming election.

His government is currently conducting nationwide public consultations on its Constitution (Amendment) Bill 2026, which passed its second reading earlier this month and is set to be brought back to parliament for its third reading next week.

If the bill passes its third reading, Fiji is set to hold its first national referendum in December, where the people will vote on whether they want Rabuka’s constitution. In its current form, the bill – presented to parliament in September – has been criticised as a downgrade from what the Constitution Review Commission had proposed.

Fijian Prime Minister Sitiveni Rabuka
Prime Minister Sitiveni Rabuka

RNZ Pacific / Fiji Parliament

Rabuka and his inner circle are backing the removal of the current constitution despite widespread opposition from local community leaders, non-governmental organisations as well as his own coalition partners who say that the process is being “rushed”.

Rabuka, 78, said he had a responsibility that he would review and amend the 2013 Constitution and “that’s what we’re going for”.

“You voted for us – some in government and some in opposition – so we have the collective vote of the people of Fiji,” he said at one of the public consulations last week.

“And you have entrusted us of doing the amendment in accordance with the rules of the country.”

The move has also given rise to online conspiracies and misinformation that Rabuka is deliberately trying to delay the election, forcing him to provide assurances that the general election will proceed as planned.

More than 723,000 eligible voters are expected to head to the polls no later than 6 February 2027.

Rabuka has so far kept the date of the general election close to his chest, stating previously that the election date will be announced after the constitutional reform process was completed.

“This is the fifth constitution that we will be looking at. Have the four previous constitutions served our purpose? Has it helped the people?” Chaudhry asked.

“Why do we rush this process of a new constitution? It can wait,” he said.

Chaudhry said Fiji could have an election under the 2013 Constitution and the incoming government could deal with the constitutional reform process.

“We have got to listen to the people. In this process, what I have noticed is that everybody has complained,” he said.

“If anything that has come through very clearly and loud in this consultation meeting, it is the people saying, ‘No, look, give us more time’.”

While the government’s constitution bill maintains the common national identity ‘Fijian’ for all its citizens, it proposes a new parliamentary system, brings back an unelected senate, changes the current electoral system, and provides “excessive concentration of constitutional power in the Executive”, according to Fiji’s Centre for Democracy and Dialogue.

It also includes Christianity as a founding value.

Chaudhry said the country should be looking at the proposed constitution that was presented by the Constitution Review Commission and not the government’s version of the document.

“Having had a look at the constitution presented as Bill 32 of 2026, I find it divisive, undemocratic, and discriminatory in many of its provisions,” he said.

“I have no problems with Christian values. I think they are good values, but I believe that religion and state must be kept apart because this is one aspect which can cause serious division [in a] multiracial country like Fiji between communities.

“I am a Hindu. My wife is a Christian. We have no problems. She practices her religion. I do mine. So where is the problem? Why do we have to put in something which is causing controversy? Is it necessary? It is not.”

RNZ

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PM confirms the next general elections will be held under the current electoral system and by Feb 6th 2027

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With some creating confusion by saying that the general elections will not be held during the required legal timeline under the 2013 Constitution, and uncertainties surrounding drastic changes to the electoral system that could affect the Fijian Elections Office’s preparations with only about 8 weeks to go for the Writ of Elections to be issued, Prime Minister, Sitiveni Rabuka has today made it clear that logically, the next general elections will be held under the current electoral system.

Rabuka made this clear in an exclusive interview when fijivillage News asked him on whether he can confirm to the people if the next general elections which has to be held by February 6th 2027, will be held under the current electoral system.

We also asked Rabuka whether any electoral changes, including those in the Constitution Amendment Bill on the drawing up of electoral boundaries if a multi constituency electoral system is approved, will be used in the elections after the 2027 elections as we need the boundaries drawn up, and population figures based on the census, which is scheduled to be held next year.

In his response, the Prime Minister says the constituency boundaries have to be drawn up and the census will take place next year.

Rabuka says the census data will provide the essential information for the Electoral Commission to do their work in time for any elections eventually the next government will face.

In a recent interview, Supervisor of Elections, Ana Mataiciwa had said that the Fijian Elections Office is ready to deliver the general elections under the current system based on the legal timeline where the last day for the Writ of Elections to be issued by the President on the advice of the Prime Minister is December 24th this year and the last date for the general elections is February 6th 2027.

She had said it would be impossible to deliver the general elections operationally within this timeframe if drastic changes are made to the electoral system including a multi constituency system.

The transitional provision of the Constitution Amendment Bill states that on the commencement of the law, the current parliament continues until it is dissolved or ends its term in accordance with section 58 of the 2013 Constitution.

This means the next general elections will be held under the legal timetable specified in the 2013 Constitution – the last day for the Writ of Elections to be issued is 24th December this year and the last day for the general elections is February 6th next year.

It is also stated that the 2026 Constitution Amendment Bill, if passed, will come into force on 31st March 2028.

However the President may, by Proclamation published in the Gazette, fix a date earlier than 31st March 2028.

Despite the commencement, section 58 of the 2013 Constitution continues to apply to the current parliament, and the maximum term of the current parliament remains 4 years from the date of the first meeting of the first Parliament.

The Constitution Amendment Bill also proposes the retention of a 55 member Parliament however a system is proposed where 33 constituency members or such number as Parliament may by written law

prescribe, which includes 5 maritime constituencies chosen directly by the registered voters of those constituencies in a first-past-the-post election; and 22 party list members or such number as Parliament may by written law prescribe, allocated to political parties in proportion to the total number of votes for the candidates of that party in the constituency seats.

Parliament or the House of Representatives is to be composed in a manner that reflects, as closely as practicable, the proportion of votes cast for political parties.

A political party is entitled to proportional representation if it secures not less than

5 percent of the party vote.

Constituency seats won are deducted from each party’s proportional entitlement, with the balance filled from party lists.

The Party list seats must be allocated in accordance with a written law prescribing an appropriate mathematical rounding method, which rounds fractions to whole numbers to determine seat allocations.

Candidates unaffiliated with a political party may contest constituency seats, and if elected, serve as independent members without affecting proportional allocation.

A candidate of a party can stand for election in a constituency seat and be included in the party’s list for a party list seat.

The Bill says Parliament may provide, by written law, for temporary special measures relating to the way in which party lists must be constituted, for example measures to ensure, as far as possible, equal numbers of male and female candidates; or measures to otherwise facilitate diverse representation on party lists.

The maritime constituencies are Rotuma, Yasawa, Kadavu, Lomaiviti and Lau.

A candidate for election to the House of Representatives must be either nominated by a registered political party or nominated as an independent candidate in accordance with the laws governing elections.

A person may be a candidate for election to the House of Representatives only if the person is a citizen of Fiji; is qualified to be registered as a voter and is registered on the Register of

Voters; is ordinarily resident in Fiji for at least 2 years immediately before being nominated; is not an undischarged bankrupt; is not a member of the Electoral Commission and has not been a member of that Commission at any time during the 4 years immediately before being nominated; is not subject to a sentence of imprisonment when nominated; has not, at any time during the 8 years immediately before being nominated, been convicted of an offence under any law for which the maximum penalty is a term of imprisonment of 12 months or more; and has not, in the 5 years immediately before being nominated, been found guilty of any offence under a law relating to elections, registration of political parties or registration of voters.

The total number of candidates that a political party may nominate for any general election must not be more than the total number of seats in the House of Representatives, and the total number of candidates that a political party may nominate for any by-election must not be more than the total number of vacant seats in the House of Representatives for which the by-election is held.

If a seat in the House of Representatives becomes vacant, the vacancy must be filled in the case of a constituency seat, by a by-election; and in the case of a party list seat, by the next candidate on the party list; or if there is no next candidate on the party list, by a by-election.

The Bill also proposes the House of Representatives continues for 5 years from the date of its first meeting after a general election of the members of the House of Representatives, unless sooner dissolved in accordance with the Constitution.

 

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‘Respect the people’: Fiji coalition clash over Rabuka’s fast-tracked constitutional referendum

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Cracks are starting to show within Sitiveni Rabuka’s coalition government ahead of a looming general election and a potential national referendum, as the country prepares to mark its 56th anniversary on Saturday.

This follows the National Federation Party (NFP) and the Social Democratic Liberal Party (Sodelpa), both the minor partners that helped Rabuka return to power, publicly calling out the prime minister for fast-tracking a constitutional reform process.

NFP leader Biman Prasad, who said earlier that his party fully supported the joint parliamentary process to review Fiji’s proposed Constitution (Amendment) Bill to change the 2013 Constitution, shifted his stance after Rabuka pre-emptively announced a referendum date.

“We (NFP) have said all along very clearly that the new constitution, once and if it is passed and approved, the implementation of that constitution should not be rushed,” Prasad, who was one of three Fiji deputy prime ministers, said on Monday.

However, in a statement on Tuesday, he declared that the NFP “outrightly rejects” Rabuka’s attempt to fast-track the process, comparing the approach to the previous Bainimarama administration’s unilateral implementation of the 2013 Constitution.

He said Rabuka’s announcement was inconsistent with Section 160(3) of the 2013 Constitution on holding a referendum.

“This is not how to formulate a genuine, meaningful, and fair constitution for all our people,” Prasad said.

“It is now clear that [Rabuka] is pre-empting the outcome even before the bipartisan special parliamentary committee, which was unanimously agreed to by parliament last week, has met and started scrutiny and consultation with the people on the draft constitution bill.”

“The prime minister must reconsider his position and respect the people.”

Biman Prasad, left, and Sitiveni Rabuka in December 2022.
Biman Prasad, left, and Sitiveni Rabuka in December 2022.

RNZ Pacific / Kelvin Anthony

The election and referendum timelines

Fiji is expected to hold elections by 6 February at the latest as the Rabuka administration’s term legally comes to an end on 24 December. Rabuka has delayed announcing an election date, previously telling RNZ Pacific that it depends on the constitutional reform process.

The prime minister prematurely announced the referendum date for 9 December after the government’s Constitution (Amendment) Bill passed its second reading last Friday. He also announced that he would write to the Electoral Commission to suspend all election-related campaigning until after the referendum.

During the crucial second reading, the government secured 38 votes (out of 53) in favour of the bill to meet the required two-thirds majority of 36 MPs needed to progress the legislation to the next stage.

The Electoral Commission has stated that it would “give the matter serious consideration” before making any decision.

“We will deliberate and consider the extent of the discretion provided under section 15(2) of the National Referendum Act 2026 that provides guidance when the discretion is activated, and whether it should be exercised, including the reasons for and against doing so and the potential impacts of either approach,” it said in a statement.

Demand for ‘constitutional order’

Sodelpa is calling on Rabuka to “immediately respect constitutional boundaries” regarding the national referendum process.

“The rule of law and constitutional order in Fiji cannot be subordinated to executive convenience or political scheduling,” Sodelpa leader Aseri Radrodro, who is also Rabuka’s education minister, said in a statement.

The party said no one was above the law and that all parliamentarians must make decisions that prioritised the Fijian people.

Some of Fiji’s leading civil society organisations have warned that the Electoral Commission cannot lawfully suspend general election campaigning at this stage.

Fiji’s opposition condemned the announcement, saying that Rabuka was “putting the cart before the horse”.

Justice Minister Siromi Turaga has defended the process, stating on Monday that the government would systematically inform the Fijian people about the bill.

But Prasad said parliamentarians cannot do a deal on the constitution behind closed doors.

He said the government must first go back to the people to ask them what they think about the constitution bill.

“That will take time,” he said.

“All our citizens must understand what the draft constitution says and what it means for them. We could never do this in 30 days.

“If this process must be finished after the next election, so be it.”

Prasad said announcing a referendum was not Rabuka’s decision, as under the law, only the president can do that.

“And only after the bill has been passed by parliament. How does the Prime Minister then expect the people to vote for a constitution they have barely seen?”

“This announcement [of a] referendum and the process is wrong. The whole point of a new constitution is to bring our people together. It is not to divide us further.”

More than 723,000 eligible Fijian voters have registered to cast their vote at the general election.

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