26 Oct 2010

Fiji Sugar seeks recourse in India over mill upgrade failure

3:43 pm on 26 October 2010

The Fiji Sugar Corporation is pursuing the Indian authorities it says are responsible for the failure of a 46 million US dollar upgrade of mills.

The Fiji Times reports Fiji Sugar has had discussions with legal experts, and an engineer is expected from India next month to determine action against vendors who failed to complete work to an agreed standard.

The corporation's chief executive John Prasad says the vendors will be given an opportunity to rectify shoddy work, but failing that legal action could be taken and damages claimed.

Mr Prasad says the failed mill upgrade has cost Fiji Sugar and the country a lot of money and the vendors won't be allowed to get away with it.

The Fiji Sugar Corporation recorded a 93 million US dollar loss for the last financial year.

This was attributed mainly to frequent mill breakdowns and inefficient cane processing and sugar production.