4 Sep 2003

Fiji Development Bank pays off sacked CEO

4:24 pm on 4 September 2003

The state-owned Fiji Development Bank has paid its sacked managing director, Iosa Kaloumaira, 180 thousand US dollars in an out-of-court settlement of claims totalling more than 260-thousand dollars.

Mr Kaloumaira was sacked in February this year by the chairman of the bank, Navitalai Naisoro, who resigned recently and is also facing a personal claim arising from the event.

The Labour Party leader, Mahendra Chaudhry, has called for an inquiry into what he describes as the "scandalous circumstances surrounding Mr Kaloumaira's sacking" and the sudden resignation of Mr Naisoro.

Mr Chaudhry says the matter should have been allowed to go to court if the state-owned bank and its board were justified in sacking Mr Kaloumaira.

He says the Development Bank is the latest in a whole series of scams that have hit Airports Fiji Limited, the Fiji Electricity Authority, the Public Works Department and other ministries as a result of financial mismanagement and outright corruption.