FNPF’s Record Interest Payout a Result of Bainimarama Government’s 2011 Reforms, Says Premila Kumar

Opposition Member of Parliament Hon. Premila Kumar says the Fiji National Provident Fund’s (FNPF) record 8.75% interest payout for 2025 is a direct result of the bold reforms introduced by the Bainimarama Government in 2011 and 2012.

In a statement, Hon. Kumar said the Fund’s strongest performance in over 30 years is not coincidental, but a clear outcome of decisive leadership that tackled deep-rooted issues of corruption, mismanagement, and political interference that once plagued FNPF.

She highlighted that in 2006, serious governance issues surfaced when two former General Managers were charged with abuse of office and extortion for authorizing improper payments — exposing weak internal controls within the Fund.

“By 2011, FNPF was in serious financial trouble, dragged down by failed and politically driven investments like the Momi Bay and Natadola projects, which resulted in a $178 million write-down,” said Hon. Kumar. “At the time, member savings stood at just $3 billion, and total assets at $3.8 billion. The Fund was at risk of collapse.”

She said the Bainimarama Government took urgent and necessary steps to save the Fund, guided by recommendations from the IMF and oversight from the Reserve Bank of Fiji. These actions led to the passing of the FNPF Act 2011, which she credited for:

• Restructuring the Fund into a contribution-based model,

• Strengthening investment and risk management practices, and

• Ensuring long-term transparency, compliance, and sustainability.

“The outcome of these reforms is now clear,” she said. “Members’ funds have grown to $8.1 billion, and total assets have more than doubled to over $10.6 billion. In 2025 alone, the Fund earned over $1 billion in investment income — its strongest return in history.”

Hon. Kumar added that once-criticised projects such as Momi Bay, Natadola, and Fiji Airways are now delivering real value for members.

“This 8.75% interest payout is not just a financial milestone — it’s proof that bold reform and responsible leadership produce real results. FNPF members today are reaping the benefits of decisions made more than a decade ago,” she said.

Hon. Kumar concluded by reaffirming that the strength and success of FNPF today are rooted in the reforms of the past, which ensured the Fund’s survival and long-term viability.