Probe Can Impact Investors
Former Governor of the Reserve Bank of Fiji, Savenaca Narube, believes the investigation into Grace Road Group, a foreign investor in Fiji, has the potential to impact foreign investors’ confidence in
Fiji.
However, he thinks this impact will be positive, and that the investigation signals that Fiji is following the laws and regulations of the country. He emphasized that investors must compete on a level playing field and bending the rules will only attract substandard investments that do not meet global transparency criteria, ultimately harming the country in the long run.
“I think that message needs to go out clearly to the investors. We are not going to bend the rules for anybody. You must compete on a level playing field, and we will choose you based on that standard, because once we bend the rules, the investors will know and it will attract the substandard kind of investment into the country and ultimately over the years, the country might be paying for those investors who don’t meet the global criteria of transparency. So, it might affect Fiji positively,” Mr Narube said.
Acting Prime Minister and Minister for Trade, Co-operatives, SME’s and Communication, Manoa Kamikamica, insisted that the investigation into Grace Road Group should remain confidential to avoid damaging investor confidence.
He encouraged a thorough investigation and would give the president of Grace Road Group, Daniel Kim, the opportunity to explain his position before the Government comes to a decision.
Mr Kamikamica emphasised that the investigation is not a witch hunt but rather a request by the Prime Minister to ensure that Grace Road Group is following the laws of both Fiji and Korea.
“The last thing you need in a country is a perception by business that anybody can get investigated by the Government,” he said.
“We are still recovering from the effects of COVID-19, and we need to explore more opportunities to grow and boost investment.
Despite the ongoing investigation, Mr Kamikamica said that Grace Road Group has significantly lifted the standard of retail in the country.
“We have better product layers, we see tourists going in the shops and buying things, locals are going to those shops. So, it has created a new environment in terms of retail businesses in Fiji.
“Notwithstanding some of the concerns that have been raised against the group in various forums.”
He said Fiji was open for business and looking for ways to turbocharge the economy.
He emphasised that Fiji needs investments that can be approved quickly so that the country can start employing people, create jobs, and get the economy moving.
Mr Kamikamica said Government recognised the importance of private sector investment and was committed to providing support to investors, both local and foreign, who were interested in investing here.
In line with this, Fiji will take part in a trade show in New Zealand in the coming weeks to explore potential business opportunities and attract more investment to the country.
He said Government was determined to make Fiji an attractive destination for investment and was eager to work with investors who shared this vision.
Investment Fiji chief executive officer Kamal Chetty assured that the organisation will cooperate with appropriate agencies conducting the investigation against Grace Road Group.
They will provide any details or information required, but they would not provide any comments that might interfere with the investigation from relevant authorities.
Meanwhile, Grace Road Group president Mr Kim has refuted all claims levelled against them.
He said the group will cooperate with the investigation. He also challenged the investigation team to convict him if they found any wrongdoing in their operation or withdraw the investigation.