13 May 2010

Fiji Development Bank forced to close Lagoon Resort in Pacific Harbour

11:02 am on 13 May 2010

The Fiji Development Bank says it was forced to close the Lagoon Resort in Pacific Harbour last week.

The banks acting CEO Nafitalai Cakacaka says there were pending transactions between the resort and the bank that had been ongoing for some time.

He said it was also to do with disagreements on the time-share agreements and the relationship with the bank customer.

But resort manager Jim Sherlock told the Fiji Times said the two parties had disputes for some time, claiming that the bank had agreed to finance the conversion to time share thirty months ago and received no indication from the bank that it wouldn't.

Instead, he said, the resort continued with the development while full payments were pending back to the bank.

Mr Cakacaka said the bank was only following proper procedures when it closed the resort last Friday.