Government says it would be wholly improper to use public funds to bail out any party involved in the Fiji Airways charter to Israel dispute, and it will not interfere in ongoing court proceedings, Deputy Prime Minister and Finance Minister Prof Biman Prasad declared. He stressed that the matter is a commercial transaction between Fiji Airways and the charterer, not a government financing issue. The Prime Minister has been clear that Fiji Airways should receive what it is owed by the charterer, Prasad added, and there will be no Cabinet-approved support or government guarantees, subsidies, or indemnities to back the dispute. “This is strictly a matter between Fiji Airways and the charterer to resolve through the courts,” he said.
When pressed about what would happen if the charterer does not settle the balance, Prasad again cited the Prime Minister’s remarks in Honiara at the Pacific Islands Forum, saying the PM has been explicit that Fiji Airways should be paid what it is owed, with the courts to decide the outcome. Prasad also confirmed that there were no government assurances given at the time of the flights, nor discussions with foreign partners about cost recovery. “There are no such discussions with foreign partners or agencies regarding cost recovery, nor has the Ministry of Finance initiated any such discussions,” he stated. He noted that the issue has already been raised with Parliament’s Standing Committee on Social Affairs during its scrutiny of Fiji Airways’ 2023 Annual Report, marking the first time in more than a decade that such detailed questioning occurred.
Context and added perspective
The comments come against a backdrop of ongoing governance discussions surrounding senior officials in Fiji. Earlier statements by the Finance Minister have highlighted a pattern of government officials defending their positions in related inquiries, including high-level discussions about accountability and the role of independent oversight bodies. While today’s remarks focus on a private commercial dispute, they sit within a broader narrative about fiscal discipline, transparency, and the government’s approach to due process and governance scrutiny.
What this means going forward
– Fiji Airways is urged to pursue recovery through civil channels, with no expectation of government funding or guarantees.
– The judiciary will determine the outcome if the charterer does not settle, reinforcing the separation between private contracts and public purse considerations.
– Parliament and relevant committees will continue to review related financial disclosures and performance, as seen in the past year.
Deputy Prime Minister Biman Prasad reaffirmed that public funds will not be used to bail out parties to the Fiji Airways charter to Israel dispute and that the government will not intervene in court proceedings. He underscored that the matter is a private commercial dispute, with Fiji Airways entitled to what it is owed and the courts to decide the outcome. The stance aligns with a broader emphasis on fiscal prudence, adherence to due process, and the avoidance of government guarantees in private settlements.
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