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It’s ironical that Aiyaz wants to lecture us about Govt debt and financial prudence – Prof.Prasad -Debt under Rabuka Govt is now going to be above $10 billion – Sayed-Khaiyum

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Deputy Prime Minister and Minister for Finance, Professor Biman Prasad says it’s ironical that the FijiFirst Party which increased Fiji’s debt by over $7 billion since 2007 is wanting to lecture the new Government about financial prudence, fiscal discipline and debt management after former Minister for Economy, Aiyaz Sayed-Khaiyum said that debt, which was supposedly a very bad thing for the country, is now going to be above $10 billion under the Rabuka led government.

While responding to Sayed-Khaiyum’s facebook post, Professor Prasad says it’s under the FijiFirst and Sayed-Khaiyum that Fiji’s debt increased from $2.7 billion in 2007 to almost $10 billion.

Professor Prasad says the man who now wants to be the “defacto Leader of Opposition” is the same person that was responsible for the $6 billion addition to our national debt under his leadership as Finance Minister from 2014.

He says the $6 billion increase out of the $7 billion increase was directly piled up by Aiyaz, and he should be the last person to lecture us about debt management.

Professor Prasad says in the 2023/2024 budget, they have halved the fiscal deficit from an average of 9 percent in the last few years to 4.8 percent.

He says they have put the debt to GDP ratio on a sustainable path from the peak of 90 percent under FijiFirst to now below 80 percent. Professor Prasad says they have been responsible and taken the hard decision to fix the revenue problem by permanently adding $600 million additional revenue to Government coffers, and also made sure that the vulnerable are protected and the economic recovery is not disrupted.

He says this has in fact built credibility amongst the people, businesses and development partners about the coalition government’s commitment to fiscal prudence.

The Deputy Prime Minister says on expenditure, Aiyaz Sayed-Khaiyum has quickly forgotten that his 2017/2018 had planned expenditure of almost $4.4 billion and again in his 2018/2019 budget he had allocated a total expenditure of almost $4.7 billion, and he did that with a revenue hole of over $1 billion.

Professor Prasad points out that Aiyaz promised a large budget before the 2018 elections and delivered $1 billion less because there was no money.

He says Aiyaz went that far to mislead the people.

Professor Prasad says the 2023/2024 budget of $4.3 billion is still lower than those two budgets but more importantly, they are basing the expenditure on a sound revenue forecast and financing plan and not like the fake budgets that were made in the past by Aiyaz.

He says they have received an overwhelming support for the budget given its prudence and inclusiveness.

The Deputy Prime Minister says they have a plan to fix the debt situation and our economy and they will not be distracted by people like Aiyaz Sayed-Khaiyum who were solely responsible for creating the mess that the coalition government is trying to fix.

He also says Aiyaz Sayed-Khaiyum has also presented a convoluted analysis of the tax exemption to the water sector to mislead everyone and try to portray that Fiji has lost government revenue.

Professor Prasad says while Aiyaz talked about the corporate tax exemption, he selectively ignored that water resource tax has been increased from 18 cents per litre to 19.5 cents per litre.

He says overall, there is a revenue gain for Fiji through this arrangement and at the same time it also allows our major investors to claim tax credits overseas which will help us with more reinvestment in Fiji.

The Deputy Prime Minister says basically, under this new arrangement, all bottled water companies will have a corporate tax holiday and they will only pay the water resource tax.

He says for those extracting less than 10 million litres per month, the rate will be unchanged, however for those extracting more than 10 million litres, the rate has been increased from 18 cents to 19 cents with an overall gain in revenue for Fiji.

Sayed-Khaiyum had posted that after promising to exercise “fiscal prudence”, “fiscal conservatism” or “fiscal consolidation”, supposedly because of mismanagement by the FijiFirst, the Rabuka sanctioned budget delivered by Biman has handed down the largest spending budget in Fijian history, outside of the pandemic years.

He said the budget does not provide any concrete or real plans to grow the economy on a sustained basis.

Sayed-Khaiyum says with already such a large deficit weighted fundamentally on operational expenditure, we can see that such deficits will be there for the long-term, meaning more and more debt.

He says there is nothing about fiscal prudence in this budget, and polar opposite to what was promised prior to the budget announcement.

Sayed-Khaiyum says the VAT hike and meddling with departure tax will make tourism industry less competitive.

He asks how is the budget fair and just or balanced as they like to call it – especially when you ask the low income and middle class to pay or do all of the heavy lifting of government’s extravagance while high income earners get off scot-free.

Sayed-Khaiyum says operating expenditure is way up in this budget, and operating expenditure does not build assets.

He says every company that is currently paying the corporate tax rate of 20% will now have to pay 25%, except all water extraction and bottling companies.

Sayed-Khaiyum says here we have Fijian owned businesses, small and medium enterprises, struggling in this already dampened market because of the uncertainty of economic policies over the past few months, the massive skills and brain drain, lack of general consumer confidence, impending increased FNPF contributions, increased negative impact on cash flow because of VAT increase and general cost of doing business, and, pressure from employees to raise wages because of increased day to day costs for them, now having to pay 5% more corporate taxes (an increase of 25%) when Fiji Water and other water extraction and bottling companies will now not pay any corporate tax for the next 7 years.

He says the justification that by increasing water resource tax we will overall be collecting more on balance also does not hold water.

Sayed-Khaiyum says they can pay corporate tax and water resource tax.

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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.

RNZ

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