Fiji Public Trustee Revenue Crisis as Trust Funds Run Dry

The Fiji Public Trustee Corporation is grappling with significant revenue challenges as its income from crucial trust funds continues to show a downward trend. Chief Executive Ajay Singh addressed these issues while presenting the corporation’s 2020 Annual Report to the Standing Committee on Social Affairs.

Singh pointed out that fee income from trust and estate services constitutes the primary source of revenue for the Fiji Public Trustee Corporation. He mentioned that while 2020 was a relatively good year, with a notable 69% of fee income generated, this percentage has been diminishing over the years. A key factor in this decline is the depletion of the Fiji National Provident Fund (FNPF) minor trust funds, which were once the backbone of their revenue. Singh expressed concern that the FNPF trust funds are running out, indicating that soon, no minor trust funds will be available for the corporation.

Singh elaborated on the implications of this trend, stating, “It’s a major concern for us, because the FNPF Act changed in 2011. After 18 years, the funds we received in 2011 will have been fully distributed to beneficiaries, which means we will see no income from the trust business going forward. As a result, our trust revenue will decline substantially, leaving us to rely primarily on estate income, which is not expected to significantly contribute to our overall revenue.”

In light of these challenges, Singh noted that submissions have been made to the FNPF in hopes of addressing the situation, though the prospects of reinstating the trust income stream appear slim. Ongoing discussions are expected, as the corporation seeks potential avenues to navigate these financial hurdles.

As the Fiji Public Trustee Corporation faces a crucial transition in its revenue model, the focus on adaptive strategies will be essential for ensuring its sustainability. While the current situation presents challenges, proactivity in exploring other financial avenues or adjusting services may provide a glimmer of hope for the organization moving forward.