5 Jul 2010

TI Vanuatu says bailout loan isn't fair on public

6:13 pm on 5 July 2010

Transparency International Vanuatu says more needs to be done by the government to help rid the national airline of its debt, and it shouldn't be taking money from the National Provident Fund.

The government has agreed to lend Air Vanuatu 3.3 million US dollars from the retirement fund to help ease the strain of the airline's 29 million US dollar debt.

It also removed serveral politicians from the airline's board, and replaced them with public servants.

Marie-Noelle Ferrieux-Patterson of Transparency says funds have been misused by Air Vanuatu board members for many years, and it's not fair that the public ends up paying for it.

"This type of activity has just been so repeated that you arrive at the point where too many debts, they need to borrow, and again the solution is to take the retirement fund of the people."

Marie-Noelle Ferrieux-Patterson says there's no guarantee that the funds will not be misused again.