‘Firm does not appear to constitute a significant integrity risk’
FIJI Airways, its shareholders, and its management do not appear to constitute a significant or potentially significant integrity risk, the Asian Development Bank (ADB) said after conducting an integrity due diligence before approving a $65 million loan to the national airline.
ADB president Masatsugu Asakawa stated this in his report to the board df Directors in December 2020 to approve the loan to Fiji Airways.
“There are no unresolved adverse media or relevant information related to them. ADB’s review of Fiji Airways does not give ADB cause to believe that it is being used for money laundering, terrorism financing, tax secrecy, tax evasion, or tax fraud. Tax integrity due diligence was not required,” he stated.
Fiji Airways was informed of ADB’s anti-corruption policies.
“Fiji Airways was advised of ADB’s policy of implementing best international practice relating to combating corruption, money laundering, and the financing of terrorism. ADB will ensure that the investment documentation includes appropriate provisions prohibiting corruption, money laundering, and the financing of terrorism, and remedies for ADB in the event of noncompliance.”
The ADB president said the Fijian Government was the guarantor of the loan.
“The project will benefit from a sovereign guarantee provided by Fiji covering the total principal amount of the ADB loan.
“It was approved by the Parliament of Fiji on 26 May 2020. This gives significant support to the project, since the borrower’s revenue-generating ability was severely curtailed and remains uncertain because of the ongoing COVID-19 crisis.”
The ADB loan comprises a $40 million loan from ADB and a further $25 million loan from Leading Asia’s Private Infrastructure Fund (LEAP), which will be administered by ADB.