The Government is considering a request from Post Fiji Ltd to write off a significant debt of $9.6 million owed by an unknown Australian-based company. This request was disclosed in the Public Accounts Committee (PAC) review report of the audit years ending 2019-2020 and 2021-2022, which was presented in Parliament.
According to the PAC report, Post Fiji has sought to explore all options for recovering the debt and hired an Australian investigative firm, Truth Investigations, to look into the personal assets of Mr. Shaffe Khan, the director of Logistics Consultant International Pty Ltd. However, a national property ownership search did not reveal any assets under Khan’s name.
The $9.6 million debt is linked to a company that has been dissolved, and the owner’s whereabouts remain unknown. In response to PAC inquiries regarding the outstanding debt, Post Fiji informed the committee that it had engaged both an Australian law firm, Commercial Litigation and Insolvency Lawyers, and a local firm, Sherani and Company, to pursue legal action for debt recovery.
Post Fiji reported that investigations concluded that recovery was unlikely, given that Logistics Consultant International Pty Ltd had been voluntarily wound up and deregistered. After exploring all alternatives, Post Fiji management proposed to its board on May 19, 2023, that the debt be written off. The board has since consulted with the Ministry of Public Enterprises and is awaiting a response.
PAC highlighted the need for further investigation due to the substantial sum involved and recommended resolving the issue, including any write-off proposals, before 2025, with an appeal to the Ministry of Finance for resolution.