Melanesia in Review: Issues and Events, 2002
Reviews of West Papua and Solomon mined, circumvented and ignored by Islands are not included in this issue. the highest in the land including those who were sworn in to uphold it” Fiji (Times, 19 May, 10). During the final The political and economic highlights months of 2002, the Fiji Labour Party in Fiji in 2002 have again brought and some quasi-political civil society into sharp focus a lesson painfully movements like the Citizens Constitu- learned after the 1987 military coups: tional Forum (ccf) questioned why it takes years to recover from the neg- some members of Parliament had been ative ramifications of any national permitted to continue serving in Prime political upheaval. The economic and Minister Qarase’s cabinet despite sociopolitical fallout of the May 2000 videotaped evidence of their close civilian coup in Fiji continued to involvement in the May 2000 civilian impact major events in both the uprising. The extensive video footage politico-legal and economic domains of siege activities at the Veiuto Parlia- of the nation during the year. The mentary Complex emerged during the path to economic recovery and socio- first treason trial of Josefa Nata and political normalcy was generally shaky Timoci Silatolu, which commenced on and fraught with difficulties. The local 26 November and featured deposed tabloids regularly featured major Prime Minister Mahendra Chaudhry scams within the civil service, exacer- as a key state witness (Post, 27 Nov, bated by gross fiscal mismanagement 2; Times, 29 Nov, 1). Following the by the state and a general lack of 14 November conviction of fifteen political goodwill between the major former Counter Revolutionary War- political parties—the ruling Soqosoqo fare Unit soldiers who had been found Duavata ni Lewenivanua (sdl) and guilty of the November 2000 mutiny the opposition Fiji Labour Party (flp). charges, ccf Director Reverend In an editorial comment on 19 Akuila Yabaki called for the prosecu- May 2002, the Fiji Times noted a pre- tion of “all others,” including some dictable trend of court decisions fol- chiefs and prominent civil servants lowed by appeals, “scams of ludicrous who were behind the May 2000 take- proportions,” and botched investiga- over (Post, 7 Nov, 3). Police investiga- tions into corruption cases since the tions into the civilian coup remained 2000 coup. The editorial also ques- sluggish despite repeated calls tioned whether all Fiji citizens were throughout the year for a speedier equal before the law, arguing that the roundup of all those involved. A law was increasingly being regarded progress report issued in September as an “optional extra for those who claimed that checks were being drawn want to use it.” Following the May on the bank accounts of those 2000 upheaval, the editors observed, allegedly paid to execute the over- “the law has been subverted, under- throw (Times, 28 Sept, 4). However,
440 political reviews • melanesia 441 the year ended without any apparent vided by the government’s Accounts progress in police investigations into and Finance Annual Report for 2001 the traumatic events of May 2000. recorded a 3.8 percent growth rate for Not all major developments that Fiji’s economy in that year. This transpired during 2002 were negative. increase was attributed mainly to There were some positive develop- expansions in the clothing, footwear, ments in terms of Fiji’s inter-regional and food industries. With the Reserve and international relations as well as Bank of Fiji (rbf) predicting a growth local economic recovery. For instance, rate of 4.4 percent in 2002, economic Fiji’s relations with Australia, New recovery, albeit at a sluggish rate, has Zealand, and the member countries begun (Times, 8 June, 5; 9 Dec, 2; PM, of the African, Caribbean and Pacific June 2002, 22). According to figures (acp) Summit, as well as with the provided by the Fiji Bureau of Statis- European Union, greatly improved tics, the building industry recorded no after Fiji hosted the third acp Summit major decline in 2002, as it generally in July, the Pacific Islands Forum remained constant in the first quarter meeting that commenced in Suva on and recorded a slight growth during 15 August, and a subsequent Confer- the second quarter. Moreover, a boom ence for Pacific Islands Trade Minis- in the industry is expected next year, ters. Signs of improved relations if and when major building projects between Fiji and Australia and New in the pipeline are carried out, such Zealand could be gleaned from the as the proposed multimillion dollar opening up of dialogues between Hilton Denarau project, the Air Prime Ministers Qarase, Helen Clark, Pacific hotel, and the twenty-story and John Howard during the Pacific Motibhai/Colonial complex in Suva Islands Forum in August (Times, (Times, 5 Oct, 3; 14 Nov, 8; Review, 16–19 July; 16 Aug, 1). Relations Dec 2002, 17). Fiji’s ratio of invest- between Fiji and these two nations ment to gross domestic product (gdp) had tended to sour following each rose to 10 percent, a slight increase coup. After the 1987 military coup, from the 2001 figure. However, this Australia imposed trade sanctions, ratio is still well below the 20 to 25 and New Zealand aid was withdrawn percent levels of other developing in 1987 and again in May 2000. The countries. Furthermore, at the Fiji restoration of cordial relations with Update 2002 conference, jointly con- Australia and New Zealand in 2002 vened by the Centres for Development represents a significant move towards Studies of the Australian National recovery from the May 2000 crisis. University and the University of the The lifting of sanctions by the Euro- South Pacific in June, the former rbf pean Union through a full restoration governor, Savenaca Siwatibau, stressed of its official development assistance that the investment to gdp ratio program for Fiji in the final week of needed to be 20 percent for the nation January was another encouraging to achieve a sustainable growth rate event (Times, 29 Jan). of 4 to 5 percent in the medium term Some positive gains were also made (PM, June 2002, 20; Times, 13 June, in the economic domain. Figures pro- 1). Notwithstanding the negligible 442 the contemporary pacific • fall 2003 rates of economic growth achieved in apologize for comments by the Minis- 2001 and 2002, the fact that at least ter for Women and Culture, which some growth has been achieved had been perceived by many as grossly promises further progress from 2003 racist. In a late July sitting of Parlia- onward, provided the political climate ment, she compared Indo-Fijians to improves and the state exercises pru- “wild weeds,” just one of the several dence in its fiscal management. racially loaded comments made in the In the political arena, persistent House by ethnic Fijian parliamentari- bickering imbued with racial over- ans in 2002. A subtly anti-Indian tones between members of the Soqo- statement by former Education Minis- soqo Duavata ni Leweinaua and the ter Jioji Banuve on 11 April was also Fiji Labour Party within the House condemned by various student bodies of Representatives foreshadowed, and and other civil society organizations to some extent sabotaged, efforts to (Times, 13 April, 3; 15 April, 2). Such foster the post–May 2000 spirit of tensions within the House of Repre- national reconciliation. For example, sentatives reflect the inability of the the third in a series of Talanoa ses- state to reconcile two diametrically sions scheduled for August was called opposed political demands: the pro- off. Coordinated by Dr Sitiveni Hala- indigenous resolve for entrenchment pua of Hawai‘i’s East-West Center, of ethnic Fijian political supremacy, the first Talanoa session focusing on and a demand for full restoration of land issues and the economy had con- constitutional democracy featuring vened in Nadi on 8 June. The second power sharing between the two major session followed a month later on 8 ethnic groups in Fiji. July and also ended on a positive note The year opened with revelations (Times, 8 June, 5; 9 July, 1). However, of an alleged plot to kidnap Prime the third session was aborted as the Minister Qarase, his cabinet members, sdl and flp leaders (Laisenia Qarase and the Fiji Military Forces comman- and Mahendra Chaudhry, respectively) der, Frank Bainimarama, during the failed to reach agreement on the first week of January. Police investiga- demands of the latter for detailed con- tions disclosed the involvement of dis- sultations on the Native Lands Trust gruntled former soldiers who had Board (nltb) proposals on native served as peacekeepers in the Middle land leases. Hence, what had started East in the alleged conspiracy (Times, off as a promising avenue for foster- 4 Jan; Post, 5 Jan, 1). On 12 April the ing cooperation and goodwill between Fiji Peacekeepers Association (fpa) the two parties ended prematurely due had filed a $255 million writ against to the reluctance of both leaders to the state in the High Court on behalf compromise. of Fiji soldiers who had served in the Chaudhry had refused to continue Middle East between 1978 and 2002 with the Talanoa sessions unless the and claimed nonpayment of allow- sdl side provided full details of the ances. The writ named the Fiji Mili- nltb proposals on land leases tary Forces, the Minister for Home (Times, 9 Aug, 1). Chaudhry was also Affairs, and the government as defen- upset at the failure of the sdl side to dants (Times, 13 April, 1). A former political reviews • melanesia 443 soldier and fpa member was taken 8 Jan; Times, 9 Jan; 11 Jan, 1, 6; in for questioning by the police in 12 Jan; 19 Jan). A report by a special the second week of July in connection investigation team highlighted unethi- with the discovery of weapons and an cal practices including the expenditure alleged plot to stage a protest during of $194,000 on nonfarm implements; the acp Summit (Sun 12 July, 1). the purchase of farm implements at Again, in December, the police greatly inflated prices from the major arrested a soldier and conducted raids supplier, Suncourt Hardware Limited; after allegations of another plan by the restriction of supplier options to fpa members to disrupt celebrations only two hardware outlets, Suncourt marking the end of Fiji’s participation Hardware and Repina Wholesalers; in the United Nations peacekeeping the nonissue of tenders to the Govern- mission (Times, 20 Dec, 1). ment Supplies Department, which Another alleged conspiracy fol- could have supplied the materials at a lowed closely on the heels of the kid- much cheaper price; and the failure to nap plot, this one to kill semi-retired obtain three competitive quotations Sitiveni Rabuka, the former Soqosoqo before purchases were made. The ni Vakavulewa prime minister and largest supplier, Suncourt, netted $4 leader of the 1987 coup. The plan was million worth of purchases by govern- revealed in the Suva High Court dur- ment local purchase orders (Post, 15 ing a case against a former Middle Feb, 1; Times, 19 Jan). On 11 Janu- East peacekeeper (Times, 8 Jan,1). ary, Prime Minister Qarase accepted Amidst these concerns, backbencher responsibility for the $25 million scam Mick Beddoes called for an investiga- but denied that funds had been abused tion into claims by the flp leader, and refused to step down (Times, 12 Mahendra Chaudhry, that another Jan; 19 Jan). coup would take place in February In mid-January, Qarase’s re-estab- 2002 (Times, 5 Jan, 3). lishment of the Fiji Intelligence Service These alleged conspiracies were (fis) was questioned by Chaudhry, quickly upstaged by a scam involving who had disbanded the unit during a Ministry of Agriculture farming his tenure as prime minister. A plan assistance program established for for a new Great Council of Chiefs the benefit of indigenous Fijians and complex costing around $2 million Rotumans (Times, 11 Jan, 6). This was revealed on 25 January (Times, was part of a blueprint for affirmative 25 Jan, 3). By November the esti- action extensively promoted by mated cost had soared to $22 million, Qarase and his sdl team during the $10 million of which would be 2001 pre-elections campaign. Disclo- covered by a government grant sures of grossly unethical procedures (Times, 12 Nov, 9). In the final week used to implement the scheme led to of January, the Fiji Labour Party the suspension of high-ranking Min- questioned why the sdl government istry of Agriculture officials and the spent around $200,000 for renova- deployment of the entire Finance Unit tions to Prime Minister Qarase’s home of the Ministry of Agriculture to (Times, 25 Jan, 1). other ministries in mid-January (Post, A landmark High Court ruling 444 the contemporary pacific • fall 2003 issued on 8 February declared Krishna and by others as “cronyism.” More Prasad of the Fiji Labour Party the than six hundred leases in the Seaqaqa elected member of Parliament for the cane belt were renewed on 4 August Nadi Open Constituency. Justice (PM, July 2002, 27–28; Review, Sept Anthony Gates validated votes that 2002, 10). had been nullified in the 2001 elec- In March, the state raised more tions (Sun, 9 Feb, 1). On 15 February, than $64 million through the public the unseated candidate, Prem Singh, sale of 20.1 million of its shares in the was granted a stay against the High Amalgamated Telecom Holdings. Sim- Court ruling to permit him time to file ilar revenue-seeking exercises mooted an appeal (Times, 16 Feb, 1). Nine by the Government during the year months later, the Supreme Court again included a 12.5 percent increase in the ruled in favor of Krishna Prasad. sdl value-added tax (vat). The Fiji Trade members of Parliament boycotted Unions Congress, the National Farm- Prasad’s swearing-in ceremony on ers Union, and various other non- 23 September, indicating an align- government organizations held rallies ment of nfp and sdl party interests in Suva, Lautoka, and Labasa to against the Fiji Labour Party (Times, protest against the proposed tax 24 Sept, 1–2). increases (Post, 9 Nov, 3; Times, 9 The refusal of the Fiji Military Nov, 1,3; 12 Nov, 7; 24 Nov, 1, 3; Forces to accept Colonel Filipo Tara- Post, 24 Nov, 5). The government kinikini’s resignation caused contro- defended the proposed vat increases versy in March. Tarakinikini had with a full-page advertisement citing played a pivotal role as the official the urgent need to finance its blue- army spokesman during the May print for affirmative action during 2000 crisis, and there were allegations 2003 (Times, 9 Nov, 3; 23 Nov; 8 that he had colluded with the perpe- Dec, 5; Review, Dec 2002, 17). trators of the coup. Also in the same According to Qarase, the 2003 budget month, a former manager with the constituted a comprehensive and collapsed National Bank of Fiji and ambitious program of rural develop- ex-colleague of Qarase at the Fiji ment aimed at “bridging the gap Development Bank, Mr Kalivati between the rural and urban areas” Bakani, was appointed as the new and bringing the livelihoods of rural nltb general manager (Times, 26 indigenes up to par with other ethnic March, 1). This appointment may groups (Times, 8 Dec, 5). Critics augur a new direction for the custo- charged that this was an attempt by dial body for native lands in Fiji. the government to divert attention Former nltb boss Qarikau had been away from its amassed deficits and embroiled in a spate of controversial debts. The government also imposed cases involving nonrenewal of native a “temporary freeze” on the filling of leases and forced evictions of tenant all civil service vacancies effective Indo-Fijian farmers during and from 1 January 2003. Prime Minister following the May 2000 coup. Mr Qarase claimed that this would help Bakani’s appointment was perceived curb increases in government operat- by some as a “house-cleaning” exer- ing costs (Times, 22 Oct, 1). Needless cise for the Native Lands Trust Board to say, the proposed downsizing of political reviews • melanesia 445 the civil service could raise levels of demanding the inclusion of flp mem- unemployment further. Unemployment bers in the cabinet (Times, 25 April, levels for 2002 ranged from 7 to 12 1). This followed an earlier ruling by percent (conservative estimates) or a five-member panel of judges in the 30 to 35 percent. The job market Court of Appeal that Prime Minister remained contracted, with an average Qarase had breached his constitu- of only 2,000 new jobs for the usual tional duty by failing to advise Presi- annual figure of 17,000 school leavers dent Ratu Josefa Iloilo to appoint flp (PM, June 2002, 20). members in the cabinet (Times, 16 In the first week of October, the Feb, 1). In the Supreme Court ruling, auditor general echoed an earlier Justice Anthony Gates ordered the Asian Development Bank warning state to pay over $38,000 as legal fees on government debt levels when he for the plaintiff, Mahendra Chaudhry. reported a deficit of $100 million and Mr Chaudhry decried this required an increase in government loans to expenditure by the state as a waste of over $200 million by the end of 2001. taxpayers’ money (Times, 25 April, His report also pinpointed serious 1). Five days after the delivery of the weaknesses in the cash management High Court ruling, the state filed an systems of the state bureaucracy, and appeal (Times, 30 April). A full-page noted that these shortcomings exposed advertisement in the Fiji Times by the state resources to abuse, fraud, waste, minister for national reconciliation on and mismanagement (Post, 5 Oct, 1). 3 May outlined reasons why the sdl The opposition’s budget reply stressed government had reservations about concern over current and projected including flp members in the cabi- government debts to the Fiji National net. The paradox in this standoff is Provident Fund. It pointed out that illustrated by Qarase’s repeated the current government debt to the attempts to re-engage the Fiji Labour fund totaled $1.5 billion and that if Party in dialogue on land issues, heavy government borrowings contin- despite his publicized reservations ued, there was a strong possibility about including flp members in his that debts to the fund could rise to cabinet. On 10 May Qarase told the $2.6 billion by 2005 (Beddoes 2002, press that his government would 30). Meanwhile, Fiji’s foreign deficit “exhaust all avenues of the law increased from $110.6 million in the against including Labour in Cabinet second quarter of 2001 to $171 mil- because there was too much at stake” lion in the second quarter of 2002 (Times, 11 May, 1). His own prefer- (Post, 7 Nov, 8). ence was for a multiethnic rather than On the political front, a major multiparty cabinet. Until the Supreme standoff between the Soqosoqo Court delivers its verdict on the sdl Duavata ni Lewenivanua and the Fiji appeal, the restoration of constitu- Labour Party over the composition tional democracy in Fiji remains a of the cabinet took root in April and contentious and potentially volatile remained unresolved to the end of the issue. year. The political impasse stemmed Bills reverting Schedule a and b from another landmark Supreme lands to the Native Lands Trust Board Court ruling issued on 24 April were passed by the Lower House on 446 the contemporary pacific • fall 2003
12 April and by the Senate on 25 in June. The Fiji Democratic Party was April (Times, 15 April, 5; Sun, 27 formed out of a merger of three par- April, 1). Calls for these transfers date ties: the Fijian Association Party, the back to 1954, and further attempts in Soqosoqo Vakavulewa ni Taukei, and 1996, 1999, and 2000 to legislate for the New Labour Unity Party. Its lead- the transfer failed for various reasons. ers emphasized the urgency of non- The passing of these bills served to racist power sharing to help facilitate further increase the land under indige- the full restoration of constitutional nous control, already at more than democracy in Fiji (Times, 15 July, 7). 83 percent of all land, and marked a Trade unionism in Fiji entered a new political milestone in line with gov- phase with the August launching of a ernment’s affirmative action efforts. breakaway umbrella union, the Fiji Demands from mahogany land- Islands Council of Trade Unions, by owners for increased shares in the dissenting trade union leaders. Its key harvest profit (among other consider- objective was to “depoliticize trade ations) gathered momentum in May. unionism in Fiji” (Times, 25 Aug, 3). Mahogany landowners voiced their Negotiations between the state and resentment after the Great Council of the Methodist Church over land for Chiefs (gcc) endorsed a report esti- the construction of a new Rewa mating that the harvested mahogany Bridge were finalized in September would earn $100 million and recom- when the Church finally agreed to mending that 50 percent of the rev- sell its land to the government for enue go to the state (Sun 10 May, 3; $325,000. The European Union had Times, 18 May, 2). Out of a total agreed to provide funding for the 40,000 hectares of mahogany forests, new bridge linking Suva and Nausori. 18,000 hectares were ready for har- The Methodist Church had initially vesting in the latter half of 2002. demanded $6 million for its land at Stakeholders in the industry include Davuilevu (Sun, 13 May, 1; Times, the state, the Fiji Hardwood Corpora- 28 Sept, 1). The land purchase agree- tion Limited as the “middleman,” the ment was welcomed in view of reports Native Lands Trust Board as trustee in August of a possibility that the for indigenous landowners, as well as European Union could withdraw its the mahogany landowners. The Vanua funding if settlement was not reached Mahogany Landowners Association quickly. dismissed the gcc position that the The auditor general’s report high- state owned the mahogany forests, lighting rampant abuse and misman- and continued to pressure the govern- agement of funds by the state and ment for an increased share of the within the civil service in 2001 was profits. By November, close to 97 per- released in the first week of October. cent of landowners seemed satisfied The report found that $79,000 had with the arrangements, but a group been used by the prime minister to of landowners from the Tailevu prov- publish his speeches in 2001 and that ince remained disgruntled (Post, 14 twenty government accounts were Nov, 5). overspent over the same period A new political party was launched (Times, 5–8 Oct). It also revealed that political reviews • melanesia 447 a total of $2.7 million had been paid lord and Tenant Act. The proposed to the Fijian Affairs Board over a sugar industry restructuring package period of thirteen years for a non- aimed to make the industry more existent Fijian Court system (Times, commercially viable but was opposed 5 Oct, 5). by the unions. Protests against the In November, fifteen soldiers were rescue plan zeroed in on the proposed convicted on charges of mutiny in reduction of sugar output by 100,000 November 2002. Captain Shane tonnes or about 25 percent of the Stevens was jailed for life, while the usual production level, as well as the other fourteen soldiers were given planned revision of the sugar export custodial sentences ranging from tax structure and the resulting dis- eighteen months to eight years. Dur- placement of cane farmers (Times, 28 ing the mutiny court-martial, the Sept, 5; 29 Sept, 1; 5 Nov, 1; PM, July police had been accused of tampering 2002, 31; Review, June 2002,10–17). with evidence for the trial after audio- The problems facing the sugar indus- tapes of interrogations, including a try will be difficult to solve unless the taped recording of Shane Steven’s land problem and its attendant politi- interview, went missing (Times, 8 cal issues are settled to the satisfac- Sept, 10; 6 Nov, 4; 15 Nov, 1, 3, 6). tion of all stakeholders. Furthermore, The year closed with a clear and until relevant changes are made to the firm resolve by the state to implement Agriculture Landlord and Tenant Act its sugar industry restructuring pro- to enhance security of tenure for the gram. The abrupt ending of the predominantly Indo-Fijian cane farm- Talanoa sessions contributed to the ers, efforts to revive the sugar indus- further deterioration of the sugar try may prove futile. industry, which, by the end of 2002, asinate mausio sat on the brink of total collapse. The sugar industry has been the mainstay of Fiji’s economy for a long time. On References average, sugar exports earn close to Post, The Daily Post. Daily. Suva. Jan–Dec 40 percent of total domestic export, 2002. accounting for 16 percent of the nation’s foreign exchange and more Times, The Fiji Times. Daily. Suva. than 30 percent of Fiji’s gross domes- Jan–Dec 2002. tic product. Furthermore, the industry Sun, The Fiji Sun. Daily. Suva. Jan–Dec employs approximately 200,000 peo- 2002. ple (Times, 5 Nov, 3; PM, Jan 2002, The Review. Monthly. Suva. Jan–Dec 18; July 2002, 31). Among the factors 2002. contributing to its decline were the PM, Pacific Magazine–Islands Business. nonrenewal of expired native leases