$9.6 Million Debt Write-Off: Will the Government Say Yes?

Post Fiji Ltd has requested the government to write off a $9.6 million debt owed by Logistics Consultant International Pty Ltd, a company that has been dissolved and whose owner cannot be located. This information emerged from the Public Accounts Committee (PAC) report on the Audit Reports for the years ending 2019-2020 and 2021-2022, which was presented in Parliament on Thursday.

The PAC report highlighted that Post Fiji attempted to recover the debt through various measures, including hiring Truth Investigations, an Australian investigative firm, to examine the personal assets of Logistics Consultant International Pty Ltd’s director, Shaffe Khan. However, a national property search revealed that Khan owns no identifiable assets.

Post Fiji informed the PAC that it sought legal assistance from both Australian and local law firms to pursue recovery actions against the defunct company. Their investigations concluded that due to Logistics Consultant International Pty Ltd’s voluntary winding up and deregistration, recovering the outstanding debt was not feasible.

After exploring all recovery options, Post Fiji’s management submitted a recommendation to its board on May 19, 2023, to write off the debt. They have since consulted with the Ministry of Public Enterprise and are awaiting a response.

The PAC has recommended further investigation into this matter, due to the significant sum involved, and suggested that resolution, including write-off proposals, be addressed before 2025.

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