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1/7/08 - Govt to write-off Methodist Church debt

Government will write-off the debt owed by the Methodist Church to the Government.

The debt was for the Ministry of Health’s support in the provision of services provided in the Ba Mission Hospital.

Cabinet based its decision on a submission by the Minister for Health, Women and Social Welfare, Dr Jiko Luveni.

Dr Jiko explained that the Ba Mission Hospital started operation in 1926 and was initially staffed and managed by Methodist Mission doctors and nurses mainly from Australia.

“Government’s role and involvement at the Ba Mission began in the 1960s and continued to increase from this period onwards as the government hospital at Nailaga was unable to cater for the growing population in Ba.

“With a strong presence and contribution of government at the Ba Mission, the Methodist Church in 1994, entered into an agreement to hand over the management of the hospital to the Ministry of Health, and to provide $35,000 annually to the Ministry for managing the hospital.”

Dr Jiko said that the Methodist Church was unable to pay this sum due to the wrong assumption by the church in Fiji that the grant of the Uniting Church in Australia would be forthcoming after the 1994 Memorandum of Agreement with the Ministry of Health.

“By the end 2007, the total debts of the Church amounted to $455,000.”

She said that a subsequent court action by the Government had resulted in the Court ruling in favour of the Government and the Methodist Church instructed to repay the debt.

“The Prime Minister, however, in good faith, decided to ‘relinquish recovery of outstanding fees’ owed by the church.

“The Methodist Church in good faith is also willing to enter into a new agreement giving the Government and Ministry of Health ongoing use of the Ba Mission Hospital and its residential buildings.”

Dr Jiko said that the Government will continue to use the Ba Mission Hospital for its services in Ba until a new hospital is built.


- Ends -
No:1020

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