A debt of $9.6 million owed to Post Fiji Ltd by an unidentified Australian company is now subject to consideration by the Government, as Post Fiji has formally requested a write-off of this amount. This information was disclosed in 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.
The PAC report indicated that Post Fiji had attempted various recovery methods and engaged Truth Investigations, an Australian investigative firm, to probe into the personal assets of Shaffe Khan, the director of Logistics Consultant International Pty Ltd. However, a national property ownership search revealed no properties registered under Khan’s name.
Post Fiji has asked the Government to write off the $9.6 million owed by a company that has been dissolved, with the whereabouts of its owner currently unknown. The PAC sought clarification from Post Fiji regarding the outstanding debt from Logistics Consultant International Pty Ltd.
In its response, Post Fiji noted that it had enlisted the help of both Commercial Litigation and Insolvency Lawyers, an Australian law firm, and Sherani and Company, a local firm, to legally pursue the debt recovery. However, the investigation concluded that recovering the debt was unfeasible as Logistics Consultant International Pty Ltd had voluntarily ceased operations and been deregistered.
After exhausting all possible recovery options, Post Fiji’s management prepared a decision paper for the company board during a meeting 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.
The PAC acknowledged management’s response and recommended further investigation into the matter due to the substantial sum involved. It also urged that the issue be resolved before 2025, including recommendations for a write-off to be submitted to the Ministry of Finance.