The NLTB has today exercised its rights of re-entry on the Lako Mai Resort on Malolo Island. It has done so because of grave and persistent breaches of the conditions of the tourism lease entered into between Lako Mai Resort Limited and the Board. The major breaches are as follows:

• Non-payment of land rent which has resulted in the landowners not receiving any payments.
• Non-payment of 20% of gross receipts from accommodation sales since 1998. This amount runs into millions of dollars, which is due to the landowners and NLTB.
• Failure to comply with sanitary standards set by the Health Department.
• Failure to comply with OHS requirements.
• Failure to meet obligations to the landowners as stipulated under the Lease Agreement.
• Non-payment of FNPF contributions to employees since the resort began operations.
• Failure to produce audited accounts since operations began.

The powers allowed under the Tourism Lease is one that the NLTB uses sparingly. The decision by the Board to proceed with action in this instance is based on the fact that:

• The expatriate developer is believed to have absconded. He is known by many names, one of which is Frank Yeates.
• The NLTB wishes to protect the interests of the landowners for whom it acts as a trustee.
• The NLTB does not wish to inconvenience guests currently staying at the resort.

Landowners, through their rep, Mr. Viliame Nabiau (Turaga ni Mataqali Nasau), expressed his appreciation of the action taken by the NLTB. “We had considered taking the law into our own hands to get what is due to us, but we are thankful that the NLTB has stepped in to assist us resolve the matter in a civilised and legal way”, Mr. Nabiau said during a meeting with Board members and Executives of the NLTB in Suva on Boxing Day.

NLTB General Manager, Kalivati Bakani confirmed that a Management Team that includes landowners would be responsible for the resort’s day to day operations from now on. The primary responsibility of the new team is to take stock of the financial position of the resort and ensure that guests were not disrupted. They will also see that all workers continued to be employed and were paid their dues. “The actions we have taken are to maintain continuity of operations on the resort in the short term, as well as to ensure the long-term existence of Lako Mai as a tourist destination”, he added.

It does appear in this particular case that the proceeds from the time-share sales have been paid offshore resulting in the landowners and NLTB not being paid. “This is not meant to cast aspersions on all time-share operations or operators,” Mr. Bakani added, “but to bring to the fore the problems encountered when we deal with unscrupulous operators who exploit the landowners by their dishonest actions”. Time-share operations were well established in other tourist markets overseas and there is no reason why it should not continue to grow here. The NLTB however will closely scrutinise all future tourism leases it issues to ensure that the experience at Lako Mai Resort is not repeated.

Since NLTB is closed for business until Thursday 2nd January 2003, any queries on this press statement should be directed to Mr. K Bakani on 9995-880.

K. Bakani
GENERAL MANAGER

Monday, December 30, 2002