The High Court in Suva has ruled to lift a Departure Prohibition Order (DPO) against Parvish Nikesh Kumar, a director of Pacific Specialist Healthcare (PSH), regarding alleged unpaid contributions exceeding $1 million for its locum doctors. The Fiji National Provident Fund (FNPF) had instigated a DPO that barred Kumar from leaving Fiji as part of their efforts to recover an outstanding debt.
Court documents indicate that an FNPF inspector visited PSH on April 3 to conduct an inspection, subsequently requesting wage records for locum doctors, which were provided by the hospital. On June 6, FNPF notified PSH of the claimed unpaid contributions totaling $1,049,391.54, alongside penalties of $145,400, relating to the period from 2021 to 2025. The company was required to remit payment within seven days of receiving the notice, which was delivered on June 10.
Kumar contended that PSH had fulfilled its FNPF contributions for its full-time staff but had not done so for locum doctors, arguing that these locums were engaged through service contracts, excluding them from employee status. He highlighted that PSH had paid provisional tax for the locums, and withholding tax was deducted from their payments. Following the notice, PSH sought clarification on the debt from FNPF, and after engaging legal and financial advisors, sought an extension to address the matter.
On July 23, FNPF issued DPOs against all PSH shareholders, including Kumar, based on their role as directors of the company, which was communicated to the Director of Immigration. Notably, at the time of the DPO’s issuance, Kumar was residing in New Zealand.
Justice Dane Tuiqereqere, in a ruling made on November 28, determined that the DPO was improperly used as a debt collection mechanism. He pointed out that alternative remedies for debt recovery exist under sections 108 to 112 of the FNPF Act, which were not pursued by FNPF. Justice Tuiqereqere emphasized that the DPOs appeared to exert undue pressure on PSH shareholders rather than serving as legitimate debt recovery efforts. He concluded that there was insufficient basis for considering Kumar personally liable for PSH’s debt.
As part of the ruling, FNPF was ordered to pay Kumar $2,500, signaling a shift towards more equitable health care governance practices and a reminder of the importance of upholding legal standards in financial disputes. This case underscores the ongoing complexities faced by healthcare facilities in Fiji, especially in relation to statutory obligations and employee classifications. The decision also reflects the judicial system’s role in ensuring fair treatment in debt-related matters, restoring a sense of judicial balance and hope for businesses navigating similar challenges.
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