The Government is currently considering a request from Post Fiji Ltd to write off a debt of $9.6 million owed by an unidentified Australian-based business. This information emerged from the Public Accounts Committee (PAC) review report concerning the Audit Reports on Public Enterprises and Other Entities for the fiscal years ending in 2019-2020 and 2021-2022, which was presented in Parliament on Thursday.
According to the report, Post Fiji has sought to explore all possible avenues for debt recovery and has hired an Australian investigative firm, Truth Investigations, to look into the personal assets of Mr. Shaffe Khan, the Director of Logistics Consultant International Pty Ltd. However, attempts to locate properties under Khan’s name were unsuccessful.
The request for the write-off arises from the fact that Logistics Consultant International Pty Ltd has been dissolved, and the whereabouts of its owner remain unknown. PAC raised concerns regarding the status of the outstanding debt, to which Post Fiji responded that it has engaged both an Australian law firm, Commercial Litigation and Insolvency Lawyers, and a local firm, Sherani and Company, in pursuit of legal action against Logistics Consultant International Pty Ltd.
Post Fiji informed PAC that investigations revealed the debt recovery was unfeasible due to the company’s voluntary winding up and deregistration. Following comprehensive efforts to recover the debt, management presented a decision paper to the company board in a meeting held on May 19, 2023, recommending the write-off of the debt. The Post Fiji Board has since consulted with the Ministry of Public Enterprises and is awaiting a response.
Given the significant amount involved, PAC has suggested further investigation into the matter and emphasized the need for it to be resolved prior to 2025, including any recommendations for the debt write-off to be directed to the Ministry of Finance.