The small Pacific Island nation of Tuvalu has made a significant investment decision by purchasing property in Fiji valued at approximately $F5.8 million from prominent businessman Zhao Fugang, who has ties to the Chinese Communist Party. This transaction comes shortly after Australia identified Zhao as a major target in its criminal investigations, as documented by the Organized Crime and Corruption Reporting Project (OCCRP).
On May 2, Tuvalu’s High Commission in Fiji executed the purchase of three adjoining lots in the capital, Suva, from Zhao’s Yue Lai Hotel Company. Images of the property reveal a substantial light blue residence adorned with the Tuvalu flag. The sale was finalized with the involvement of Zhao and Tuvalu’s High Commissioner to Fiji, Eselealofa Apinelu, with funds transferred to a trust account managed by Zhao’s lawyer in Suva.
The agreement was sealed a little over a month following OCCRP’s report, which indicated that Australia’s criminal intelligence agency designated Zhao as an Australian Priority Organization Target (APOT). This list consists of individuals perceived to present significant threats to Australia. Although Zhao is a naturalized citizen of Fiji and a figure believed to promote Chinese interests in the Pacific, he has not faced any criminal charges and denies all allegations against him.
The Tuvaluan government described the property acquisition as strategic, intended to provide suitable housing for their High Commissioner in close proximity to other diplomatic staff and to potentially serve as an evacuation center for Tuvaluans residing in Fiji. They emphasized that the decision was made independent of the aforementioned reports from Australian media and OCCRP.
Zhao’s lawyer defended the transaction as legitimate and noted that Fijian legislation imposes no restrictions on property sales, given compliance with local laws.
This acquisition arrives as Tuvalu confronts pressing challenges, particularly the threat of rising sea levels due to climate change, highlighting the importance of secure administrative spaces for its diplomatic mission. Furthermore, it reflects the intricate geopolitical dynamics in the Pacific region, particularly amidst growing tensions between China and Western nations, including Australia.
Overall, while the financial commitment of approximately four percent of Tuvalu’s annual GDP raises concerns regarding dependency, it also signifies Tuvalu’s determination to bolster its diplomatic presence in Fiji during turbulent times. The hope is that strategic investments such as these will fortify Tuvalu’s mission abroad and assist in addressing the looming threats posed by environmental and geopolitical issues.
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