News
Chinese developers who caused an environmental disaster on an idyllic Fijian island have been fined more than $700,000 by the Suva High Court in the country’s first conviction for an environmental crime.
Freesoul Real Estate was found guilty in April last year of two counts of undertaking unauthorized developments in relation to a planned resort on the island of Malolo, where it ripped off part of a reef, dumped trash, stranded other landowners and disrupted traditional fishing – all before winning legal approvals and despite two court stop-work orders.
The damage was in preparation for a 370-bure resort and casino on the island, which would have been the largest in Fiji. It was shut down after Newsroom revealed that the China-backed developers had caused serious damage to the environment.
In the judgment delivered on Thursday, High Court Judge Daniel Gounder fined Freesoul FJD$1 million (NZ$714,000) for causing “substantial harm to the environment” in a sentence that , he said, reflected “community disapproval of the abuser’s lack of respect for the environment.” “, local media reported.
The developer was also ordered to post a bond of FJD$1.4 million with the Ministry of Environment to help rehabilitate the area, repayable only once environmental damage is repaired.
As the conviction is Fiji’s first for environmental crimes, Gounder said there was no comparable case for sentencing purposes.
The penalty is the highest possible penalty under Fiji’s Environmental Management Act.
Environment Minister Dr Mahendra Reddy said FBC News that the fine will act as a deterrent to investors or companies that do not plan to comply with the country’s environmental laws.
Australian surfers Navrin Fox and Woody Jack, who have a stake in a 99-year lease on land adjacent to the bankrupt resort and helped halt the destruction, said Thursday’s sentencing was a “nice surprise” after such a marathon process.
They trusted the Ministry of Environment to “do the right job”, but had heard from experts that it would cost much more than FJD$1 million to repair the damage.
“It’s a piece of the puzzle. It’s not completely finished, but it’s a step in the right direction,” Fox said.
Both would like to see more professionals brought in to do more than just stabilize the area. “It would be nice to have a master plan in place.”
Freesoul’s environmental approval was initially revoked after the story gained international attention following the arrest of Newsroom reporters Melanie Reid and Mark Jennings in April 2019. The couple were arrested by police after going to Freesoul’s office in Suva to ask questions of the then manager. Dickson Peng. They were released the following day after the intervention of Fijian Prime Minister Frank Bainimarama.
When Reid and Jennings were released, Bainimarama issued a personal apology, in which he said Freesoul Real Estate’s conduct had been “deeply concerning” for some time. He also promised to consider urgently introducing legislation to permanently ban companies that “flagrantly disregard our environmental laws and protections”.
Meanwhile, two groups of about 200 investors – mostly from mainland China – still have more than $35 million in their pockets after the resort and casino shutdown.
The Newsroom reported in late 2020 that these investors were launching class action lawsuits against the developer after prepaying the units and not seeing their money again.
