Two Napier businessmen held by the coup regime in Fiji have successfully gone to the Fiji High Court at Lautoka to have a "departure prohibition order" lifted.Anthony James Herbert and Malcolm Andrew Herbert, directors of Herbert Construction
Two Napier businessmen held by the coup regime in Fiji have successfully gone to the Fiji High Court at Lautoka to have a "departure prohibition order" lifted.
Anthony James Herbert and Malcolm Andrew Herbert, directors of Herbert Construction Fiji Ltd, were prohibited from leaving the country through an order issued on June 29 by the Fiji Islands Revenue and Customs Authority (FIRCA), which said that they were directors of a company alleged to have unpaid taxes.
Their company was the main contractor – with Downer Construction – on the ambitious $500-million Momi Bay resort development partly funded by failed finance company Bridgecorp.
The first stage of the lavish resort, 5km south of Nadi, was originally to feature six beaches, seven restaurants, a swimming pool, spa, nine-hole golf course and 60 villas, according to the developer Matapo Ltd, a joint venture of Real Estate Assets Finance Ltd and the New Zealand finance company Bridgecorp, which lent Matapo millions of dollars.
Malcolm Herbert, managing director of the New Zealand parent company Herbert Construction Company Ltd, and his brother told the court that they had suffered a lot of anguish and distress because they were unable to travel out of Fiji for business and to visit their families in New Zealand.
The two also said that they had every intention of returning to Fiji to continue the management and operation of the Fiji company.
Justice Sosefo Inoke in his judgment said that it was not disputed that the company had a tax liability but it was yet to be determined for how much and whether the directors were liable.
A key other issue was whether FIRCA had reasonable grounds that the applicants would leave and not return without first paying the assessed tax.
No evidence had been put forward by tax authorities that the company would not be able to pay its taxes, and the authority's chief executive appeared to have based his order on an opinion that the tax he had already assessed was a substantial amount and that the company's assets were insufficient to meet the tax liability.
No explanation had been given as to the basis on which the applicants have been made liable for the taxes of the company other than that they were the representatives of the company.
The judge said this was misguided and said the departure prohibition order should be immediately revoked.
The Herbert Construction Company Ltd has 10,000 shares, of which 9000 are held by Stephen Hugh Orr Reaney and Stephen Peter Lunn of Napier. Another 500 shares are held by Mr Reaney, Mr Lunn, Anthony Herbert, and Fiona Herbert, while the remaining 500 shares are held by Malcolm Herbert.
The company said on its website that its recent Fiji projects include refurbishment of the bures on the privately-owned Matangi Island, and the $25 million refurbishment of the Sheraton Royal Denarau Resort.
