The Fiji National Provident Fund (FNPF) is a cornerstone of Fiji’s financial system and must never be permitted to fail, as it safeguards the savings of every working individual in the country. The entitlements of pensioners must be respected and protected.
FNPF was established before Fiji’s independence, originating from a bill introduced by Hon AD Patel in 1965 during Ratu Mara’s tenure as Chief Minister. Hugh Robinson served as the first CEO, demonstrating strong leadership, followed by Lionel Yee, who meticulously managed the fund’s resources. Contributors were generally content with the rules governing their pensions.
Throughout various political changes, successive governments maintained the integrity of the FNPF funds, adhering to ethical practices in managing contributions and pension payouts. Despite a series of coups, the FNPF Board, which included representatives from businesses, unions, and the government, assured contributors that their interests were being safeguarded.
However, the landscape shifted after the 2006 coup when the unelected FijiFirst government began altering the FNPF Board’s structure and appointed individuals compromising its independence. In 2011, a decree was enacted without proper consultation, significantly reducing pensions for a portion of seniors, based on unfounded claims of potential insolvency.
Despite the government’s assertions, there was no imminent risk of insolvency, and officials lacked the authority to impose such drastic measures. The government further enacted legislation that shielded the decree from legal challenges, compounding the original injustice.
The 2013 Constitution enabled the government to carry out actions outside its rightful scope, leading to further disregard for the contributors’ welfare. Many question why leaders like Voreqe Bainimarama and Aiyaz Sayed-Khaiyum were allowed to dictate the fund’s fate, particularly since there was no parliamentary sanction for their decisions.
The Minister for Economy has been criticized for using FNPF as a funding source for various investments, including hotel acquisitions, putting pensioners’ best interests at risk. The government’s reckless spending has resulted in unprecedented debt levels, tantamount to enslavement, according to historical perspectives on debt.
The current Minister of Finance faces a daunting challenge of addressing the substantial debt accumulated by previous administrations. The recent 2022 election was pivotal, as a victory for FijiFirst could have led to dire consequences for the nation. Fortunately, a technical failure in vote counting contributed to their loss, sparing Fiji from further dictatorship.
The 2013 Constitution has come under scrutiny for its provision that has caused undue suffering to a select group of seniors, whose interests should be prioritized by the FNPF. While the Finance Minister announced plans to restore pension payouts to pre-decree levels by August 1, 2024, many perceive this as an inadequate response to the injustices inflicted by the illegal 2011 decree.
Critics are calling for the rapid restitution of seniors’ benefits, arguing that FNPF has improperly retained funds that rightfully belong to them. The apparent complacency of the current board, which boasts about profits while ignoring the plight of seniors, raises significant concerns.
Calls are growing for the FNPF to take decisive action by restoring credibility, prioritizing the well-being of all contributors, and ensuring that pensioners receive their rightful entitlements. A new board that genuinely advocates for the interests of seniors is deemed necessary. Urgent action and a shift in priorities are needed to address the ongoing grievances of the affected seniors, with hopes for a more compassionate and accountable governance structure.