Saturday, June 7, 2008

Namosi Province seeks rental solution

Province seeks rental solution - 6/7/2008

The company responsible for the affairs of a provincial house in Suva hopes Government finds a resolution soon regarding the rental payment for the house.

The Namosi Provincial Development Company wants an amicable solution found soon on the rental agreement regarding the Namosi House.

Company chairman Ratu Kiniviliame Taukeinikoro said the situation was complicated

“Kadavu House had signed a tenancy agreement with the interim Government which meant that rent had to come in because there was a contract, even though there was no tenant” he said.

“With the Namosi House, we are operating on a Memorandum of Understanding between the council and the Government, but unfortunately, the interim Government refuses to acknowledge that.”

He said there would be a meeting with government officials on Wednesday and he hoped a solution would be found.

Ratu Kiniviliame said the initial agreement with the interim Government was to have them pay $25 per foot of space, but Government has requested that $25 be reduced to $24, something the Namosi Provincial Development Company can’t accommodate.

“We have to make repayments to our lender and our repayment is in accordance with the $25 per foot,” he said.

“The bottom line is, something needs to be done about the situation or we just might lose the building.”

Another provincial house had initially gone through the same problem but that has been solved after it chose to end its agreement with its tenants.

The interim Government paid close to $1million to Kadavu Holdings Limited in order to end its tenancy agreement over Kadavu House on Victoria Parade.

A clause in the contract says that if the tenant wanted to end the agreement it would have to pay six months’ rent from January to June this year.

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