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THE CELL WAR: Rugby, vanua pawns in the fight to secure mobile licence
By Samisoni Pareti
In moves that seem like a straight liftout from scenes of a James Bond 007 movie, the battle on who will get the licence to break Vodafone's monopolistic hold on Fiji's multi-million dollar mobile telephony service has intensified.
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Fiji rugby... Digicel bought naming rights to Fiji sevens.
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Lobbying has intensified so much that players have resorted to corporate espionage, boardroom takeovers and the use of emotionally-charged subjects of vanua and rugby to influence the licensing authority, the Ministry of Communications.
Wheeler-dealers have also jumped on the bandwagon using their contacts in the corridors of power in government right down to the deteriorating cells of Suva Gaol.
The jostling parties are Carribean-based Digicel, on one corner, and Pacific Connex-a consortium claiming to be local-on the other.
Digicel-after securing mobile phone operating licences in Samoa and most probably Solomon Islands and other islands of the Pacific-is keen to enter the Fiji market. It has as its strategic partner the business arm of the Ba Provincial Council, one of the most aggressive indigenous investment arms in the country.
Digicel upped the stakes when it offered to buy the naming rights of Fiji sevens rugby, just before the team with renowned sevens rugby player Waisale Serevi as coach, won its final game in London.
When the country celebrated that win in London as well as being the winner of the International Rugby Board 2006 Sevens Series, Digicel basked in the glory and earned the much needed invaluable mileage.
Pacific Connex (PCX), on the other hand, was left fuming, complaining it has been let down badly.
It questioned why in offering two provisional licences last April, the Ministry of Communications also gave Digicel a licence.
It believed Digicel was a parasite, benefitting unfairly from months of intense and expensive research of Pacific Connex into the perceived exclusivity of Vodafone's licence.
"Our expectation was that only one additional licence would be issued and that this would go to Pacific Connex," Kalivati Bakani, general manager of the Native Land Trust Board (NLTB) and deputy chair of Pacific Connex, said in a media statement issued on June 23, 2006.
Disappointed that government had decided to issue two provisional licences and not one as it had sought, PCX went on the offensive, roping in politicians and chiefs to get government to agree and side with PCX.
Bakani told FIJI ISLANDS BUSINESS the offensive was right and above board.
"If Digicel can lobby politicians to get a licence, why can't we do the same?" Bakani said.
"We believe the only reason they were able to get a provisional licence was because of the help of politicians.
"Because of that, we see nothing wrong in garning for political support to achieve our objective."
Bakani defended PCX's decision to get the patron of the ruling SDL Party, Ratu Inoke Takiveikata, who is currently serving a life sentence in Suva Gaol, to sign a letter of support for the company's bid. That letter was sent to Prime Minister Laisenia Qarase and copied to the Minister for Communications, Isireli Leweniqila.
Former director of the ruling SDL Party. Simione Rasova, confirmed he had opposed the party's involvement and whether this opposition cost him his job, the man couldn't say.
He did confirm that PCX owner, Ballu Khan, was instrumental in lobbying for SDL influence.
"Ratu Kalokalo (SDL president) and I were in Korovou Prison visiting our patron (Ratu Inoke) when Ballu Khan and two others came in.
"They told Ratu Inoke and the two of us of their wish that SDL supports PCX in its bid to secure a mobile licence."
At that Suva Gaol meeting in early June, Rasova said he asked Khan what SDL would get in return for its support.
"He told me they would pay off our party debts," Rasova recalled.
"I told him, 'you mean that's all you're offering, paying off our debts of $130,000?"
Rasova said he did his own research on the proposal when he returned to the SDL headquarters and recommended to party executives that included party leader Prime Minister Qarase that the party should steer away from the PCX proposal.
He felt the party won't gain from its involvement and that it was being used to further the personal agenda and ambitions of some individuals.
"But if you're telling me that a letter was written by Ratu Inoke and sent to the Prime Minister, then I am not aware of that.
"That was done without my knowledge and who knows, my opposition must have been a reason why I wasn't given the job at the party.
"Even if that was the case, I'm not bitter about it as my conscience is clear on the matter.
"In opposing the proposal, I was driven by my determination to see SDL live up to its ideals of serving the iTaukei, the grassroots and not to be used to push the agenda of certain individuals."
Takiveikata's letter, dated June 6, 2006, made a number of promises should Pacific Connex be given the only licence:
PCX will deliver a $400 million asset to SDL.
It will set up a finance company to help indigenous Fijians
Help develop rugby at grassroots level.
Takiveikata also mentioned ATH withdrawing a case before the court if Digicel's licence is withdrawn. He added that with PCX, the 14 provinces would benefit, unlike Digicel, where only one province would benefit.
Bakani said PCX's involvement in the mobile phone industry will only benefit the indigenous community. He confirmed that in Takiveikata's letter to the Prime Minister, they had promised to assist in the development of "grassroot rugby" if granted a licence and they would also assist indigenous Fijians in business.
He however denied that PCX was offering to transfer assets valued at $400 million to the SDL Party.
"What? Where's that figure coming from?
"We don't even have assets of that amount and we never offered anything to the SDL Party in our proposal," Bakani said.
He wasn't sure whether the amount was a typographical error, but that figure appeared in Takiveikata's letter to the Prime Minister, a copy of which was sighted by FIJI ISLANDS BUSINESS.
As the letter was received by the Prime Minister's office, a corporate battle was brewing at Ba Provincial Holdings, Digicel's partner.
Legal reasons restrain discussions about this, suffice to say that a key player in the corporate takeover, Ratu Tevita Momoedonu, is also an NLTB board member.
The plot thickens when it comes to sports. Digicel has naming rights in the Fiji Rugby Union's victorious rugby sevens team.
Successful real estate developer, Keni Dakuidreketi, is chairman of the Fiji Rugby Union, as well chair of NLTB's 100% owned subsidiary, Vanua Development Corporation.
"My position is very clear," Dakuidreketi told FIJI ISLANDS BUSINESS.
"Fiji Rugby has nothing to do with government's licensing.
"We entered into an unconditional contract with Digicel and they knew that their entering into a deal with Fiji Rugby Union is not contingent on getting a mobile phone licence.
"For that, Digicel will have to sort itself out on its own."
"Fiji Rugby will not be used by Digicel to get them a licence."
Dakuidreketi, who worked for NLTB as a land surveyor for a number of years, said Digicel's contract with Fiji Rugby Union was only sealed last year whilst PCX's interest for a mobile phone operating licence had been lodged with government one year before.
He also insisted that Vanua Development Corporation is the majority shareholder of Pacific Connex, arguing that this has been the case right from the inception of PCX.
When told that documents at the Registrar of Companies did not reflect this and that Khan and his Tui Consulting company still hold 100% ownership, Dakuidreketi said "this is not the case".
"We discussed this very point in our last board meeting and the company auditors were asked to sort this matter out.
"Vanua Development has been majority owner of Pacific Connex from the very start and we don't know why the documents are not showing this," Dakuidreketi said.
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UPDATE FROM PACIFIC ISLANDS FORUM LEADERS MEETING IN CAIRNS