NFP questions the allocation of $10.4m by FNPF into a public private partnership company with Aspen

The National Federation Party has questioned the allocation of $10.1 million by Fiji National Provident Fund into a public private partnership company with Aspen to manage medical and health services at Lautoka and Ba hospitals while Aspen Medical says they successfully won the competitive international tender process and signed the Public-Private Partnership with the Fijian Government in 2019.

NFP Leader Professor Biman Prasad says FNPF Annual Reports from 2019 to 2021 shows that a little over $10.1 million was pumped into Health Care Pte Ltd in which FNPF has 80% stake with 20% owned by Aspen.

Professor Prasad says the involvement of Aspen in this so-called public-private partnership can be rightly questioned given its controversial deals in Australia, which was recently exposed in ABC’s 4 Corners program.

When questioned, Aspen Medical says the International Finance Corporation was engaged to develop and implement the Public-Private Partnership and was tasked to carry out the international tender process.

A spokesperson at Aspen Medical says the model was designed to ensure the successful bidder would partner with FNPF as the major shareholder.

He says their objective is to deliver world class healthcare services to the people of Fiji and they have successfully transitioned into the management of Lautoka and Ba hospitals.

The spokesperson says the opening of the new Ba Hospital in April and the scheduled commissioning of the construction of a new Lautoka Hospital in the second half of this year demonstrates their commitment.

He adds they remain committed to privatizing the management of services and not the services that are delivered.

This means that current services at the Lautoka and Ba hospitals will remain free to the public for services that they did not pay for prior to Aspen Medical commencing services.

The NFP Leader further says that apart from FNPF’s investment of $10.1 million so far, $424,000 was borrowed by Aspen from FNPF as highlighted in the Fund’s 2019 Report.

Prasad says the $10.1 million was injected in three installments which was $1.22 million in 2019, $3.2 million in 2020 and a further $5.7 million in 2021.

He says they want to know where has the money gone because $10.1 million is not pocket money or loose change in coins, it is money belonging to the workers.

Prasad says if invested, it must provide a decent return but the 2021 FNPF Annual Report shows that the value of 80% ownership by FNPF of Health Care Pte Ltd is $6.109 million, somehow rising from $1.487 million in 2020.

The NFP Leader is questioning how the FNPF Management can make this assessment to reflect an increase of $4.62 milion in a single year without any visible investment in Lautoka and Ba Hospitals since the signing of the public private partnership with Aspen in January 2019 under the watchful eyes of the Attorney-General and Economy Minister.

He is also questioning where is the economic logic or return on investment.

Prasad adds $10.1 million of workers’ money has been pumped into this so-called partnership but the 380,000 people that were supposed to benefit from it are still waiting for the much promised world class health and medical services.

He adds they are now demanding an independent inquiry to determine who, how and why this deal was brokered to get FNPF to enter into partnership with Aspen.

We have sent questions to FNPF regarding the claims made by Professor Prasad. They are yet to respond.