7 May 2010

Fiji Provident Fund write-off needed for long-term benefit

8:38 am on 7 May 2010

The Pacific Financial Technical Assistance Centre says the move by the Fiji National Provident Fund to write off US$168-million worth of its assets is a necessary step to ensure the Fund's long-term viability.

The interim commerce minister, Aiyaz Sayed-Khaiyum, confirmed the write-down, saying since 2005 there's been no attempt to find the true value of members' assets.

The Fund has assured its contributors that their funds are safe.

However, the co-ordinator of the Pacific Financial Technical Assistance Centre, Matt Davies, says while the write-off will be hard on the savings of pensioners, it is unavoidable.

"Yeah I think it's important for the long-term viability of the Provident Fund to have an accurate evaluation of its assets. It's important both for its members to know the real value of their savings and for its managers to make prudent investment decisions in the future. The immediate impact on the savers of Fiji is going to hurt them."