Fiji’s Corporate Compliance Crisis: A Study on the Failure of Public Cooperations

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Introduction

A recent study examining principle-based corporate governance in Fiji has uncovered a disturbing trend of corporate collapse among public cooperations due to deficiencies, deception, and improper practices. The research focused on three major players - National Bank of Fiji (NBF), Fiji Sugar Cooperation (FSC), and Fiji National Provident Fund (FNPF) - which have all experienced significant setbacks in recent years.

Study Findings

The study analyzed the economic performance of the Fijian economy between 2017 and 2021, highlighting the devastating impact of these collapses on the country’s GDP growth rate and export markets. The failure of NBF sent shockwaves throughout the financial sector, while large losses suffered by FSC put significant risk to stakeholders in the sugar industry.

• NBF’s collapse had a significant impact on the financial sector
• FSC’s losses posed a risk to stakeholders in the sugar industry

The study also found that FNPF, despite managing to overcome a 2010 write-off with good corporate governance practices, had its reputation tarnished by poor decision-making on the part of relevant authorities. This has created fear among retirement savers and highlights the need for greater accountability and transparency in corporate operations.

Implications

Despite these findings, the research suggests that there is still much to be learned from these cases. While it did not establish a comprehensive CG index or compare practices between public and private firms, it underscores the importance of companies adhering to the principles of corporate governance and training personnel to instill ethical behaviors, transparency, and accountability.

Recommendations

The study’s findings serve as an important wake-up call for other Fijian companies, highlighting the need for greater vigilance in ensuring that corporate compliance programs are robust and effective. By doing so, Fiji can avoid similar crises in the future and promote a more stable and prosperous economy.

Key Takeaways

• Corporate governance failures can have devastating consequences on the economy
• Companies must adhere to principles of corporate governance and train personnel in ethical behaviors, transparency, and accountability
• Greater vigilance is needed to ensure robust and effective corporate compliance programs