Ban on NZ directors leaving Fiji lifted

Momi Bay in Fiji. Photo / Supplied

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 Herbert and Malcolm Herbert, directors of Herbert Construction Fiji Ltd, were prohibited from leaving the country through an order 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.

Malcolm Herbert, managing director of the New Zealand parent company Herbert Construction Company Ltd, and his brother told the court that they had suffered distress because they were unable to travel for business and to visit their families in New Zealand.

Justice Sosefo Inoke 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.

Another issue was whether Firca had reasonable grounds that the applicants would leave and not return.

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 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 revoked.

- NZPA