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Bainimarama charts new path for mahogany industry

“Time to correct mis-steps, mistakes; stamp out corruption

Venkat Raman
Auckland, August 20, 2020

Bainimarama at the Fiji Mahogany Trust Meeting

Despite its high quality and value, the Mahogany industry in Fiji is wrought with corruption and mis-steps and it is time to set things right, Prime Minister Josaia Voreqe Bainimarama has said.

“It is a long story marked by disappointment and scarred by corruption. With the money and machinery that has been poured into the industry over decades, Fijian Mahogany should be a highly demanded global commodity but is not so,” he said.

Mr Bainimarama was speaking to the Trustees and officials of the Fiji Mahogany Board of Trust at a meeting held in Suva yesterday, during which he cited the collapse of the Fiji Hardwood Corporation and said that it is important to learn from the lessons of the past.

Mis-steps and corruption in the Mahogany industry

He said that he and his government had faith in the Mahogany industry and hence were charting a new path, maintaining the current level of funding despite economic difficulties orchestrated by the worldwide Covid-19 pandemic.

Long gestation period

Emphasising the importance of long-term planning, Mr Bainimarama said that it takes up to 25 years for a tree to reach full maturity.

“If you lack patience, if you want to rush the process and yank seedling trees out of the ground, this Industry isn’t for you. So, rather than throwing more and more money at this Industry, we need to get smarter about how funds are spent, and we must take a longer-term strategic view of its prospects. It is obvious that the quality of the product is critical. If your quality is not widely recognised and respected, you cannot grow a brand. And without a strong brand, you do not stand a chance in the global marketplace,” he said.

According to him, while Fiji grows high quality Mahogany, it does guaranteed growers anything without proper accreditation. He said that preliminary work has begun in this connection, he said.

Mahogany enhances elegance at home and office

Emphasis on transparency

He also called for openness and accountability.

“We value transparency because ordinary people deserve to know how their government arrives at its decisions. As for this Industry, the revenue and production figures are all available, you can ask my team for any specifics on any of that data you are after and they will tell you. But transparency cannot end at the doors of my Office. It must extend all the way down to the grassroots, to the forestry stations across the country,” Mr Bainimarama said.

Loan Initiative

He said that a new small-loan initiative of the Fiji Mahogany Trust has begun and that it would build capacity and business acumen among landowners.

“This will allow them to seize ownership over the process of production, creating employment for people and saving costs on sub-contracting. But we must carefully monitor and audit those loans to ensure they are generating solid returns. We must achieve a level of transparency that shows us our funding is being used efficiently,” he said.

Bainimarama with officials of Fiji Mahogany Trust

Mr Bainimarama said that every dollar spend should have a ‘solid impact.’

“Grant funding cannot go to functions and parties the weekend after it has been allocated. It certainly cannot disappear without a trace. It must be tracked, and shown to be used productively. The Fiji Mahogany Trust is instituting that level of accountability,” he said and that his Office will monitor the progress of implementation.

He warned that the government will monitor the working of the Trust and its transparency before considering any additional funding.

Promoting sustainability

We must also get serious about sustainability. If we focus only on felling trees and do not dedicate resources towards replanting, there will not be a Fijian Mahogany Industry a generation from now. When it comes to any agro-industry, sustainability and profitability are one and the same. By aligning yourselves with Fiji’s commitment to replanting forests, you do more than create a culture of sustainability, you help secure our planet a future, as forests are one of the great tools at our disposal to keep our air clean and keep our climate stable,” Mr Bainimarama said.

He said that his belief in the future of the Mahogany industry in Fiji is grounded in realism and not on fantasy.

“The first Mahogany plantations were planted in the mid 20th century, only decades later were the first trees harvested for a commercial purpose. But prosperity for this Industry and for our landowners should not be decades away from today. We are talking steps now to competitively position Fijian mahogany in markets like USA, Australia, and New Zealand. Whether it is building desks, homes, musical instruments, boats or even billiard cues, I want those products made from Fijian hardwood. Particularly in the current environment, where Fijian-led industries are pivotal to our economic comeback,” Mr Bainimarama said.

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