Koraua: We will recover your money, all of it.
WE will recover your money, all of it,” was the assurance given by the chairman of the Solomon Islands National Provident Fund (SINPF) board, to members.
Baoro Laxton Koraua gave the assurance when this paper questioned the board over the $15 million loan it gave to Tavanipupu Island Resort, which is now defaulted.
“Firstly, we are not at liberty to discuss results of those things because we have an agreement with our clients but we can guarantee you that whatever happens, we are talking about an investment that will come back, all of it,” Mr Koraua said.
He said the investment will return either in a form of ownership of the Island or in the form of reselling.
“But as one of the Tavanipupu directors Pamela Kimberly explained last week, they’ve got investors that are going to take over.
“So from that perspective, part of our condition is that we recover all our money first, before they can ever hand it over to anyone.”
The controversial loan sparked outraged among some members and groups who said the loan was in breached of the NPF Act.
Mr Koraua insisted then that the decision to approve the $15 million loan to Tavanipupu was purely a commercial decision, adding the interest rates charged would be very competitive in favour of SINPF.
Recently, information surfaced that the undertaking yielded no positive returns, which resulted in the accumulation of loan arrears into the $20 million mark.
One of the directors of Tavanipupu after this paper exposed the failed deal explained that there is no way NPF is going to lose money on Tavanipupu.
Pamela Kimberly said the money will be recovered with a 12 percent profit for NPF, which is nearly $4 million.
Ms Kimberly added that there is an investor looking at purchasing the Island and building a hotel in Honiara to help service the Island.
“This has been in the works for sometimes and should come to fruition very soon.”
Tavanipupu is a renowned Island resort in Marau, East Guadalcanal that hosted the Duke and Duchess of Cambridge Prince William and wife Kate during their visit here in 2012.
By EDNAL PALMER