The High Court in Suva has ruled in favor of Parvish Nikesh Kumar, the director of Pacific Specialist Healthcare (PSH), by ordering the removal of a Departure Prohibition Order (DPO) that had been imposed due to alleged unpaid contributions exceeding $1 million for locum doctors. This legal development comes in the wake of a debt claimed by the Fiji National Provident Fund (FNPF) against PSH concerning outstanding payments for these contributions.
The DPO was initially enforced to restrict Mr. Kumar’s movement out of Fiji while the FNPF sought to recover the claimed debt. Allegations concerning the unpaid contributions emerged after an FNPF inspector visited PSH on April 3, resulting in a finding that the hospital owed a total of $1,049,391.54 for locum doctor contributions from 2021 to 2025, in addition to penalties of $145,400. PSH was given seven days to comply with the payment notice issued on June 10.
Mr. Kumar defended the position of PSH, explaining that the locum doctors had been hired under service contracts and were not classified as employees, which he argued accounted for the non-payment of contributions. He emphasized that PSH had fulfilled its financial obligations for full-time employees and had complied with tax responsibilities to the Fiji Revenue and Customs Service (FRCS) concerning the locums.
In her judgment, Justice Dane Tuiqereqere found that using a DPO as a method for debt collection was inappropriate. She stated, “There are tools available to the defendant to recover unpaid contributions,” referencing provisions outlined in the FNPF Act. Justice Tuiqereqere criticized the FNPF for employing DPOs against PSH shareholders without appropriately utilizing the available recovery methods.
Moreover, the court expressed skepticism regarding Mr. Kumar’s personal liability for the debts of PSH and questioned the justification for the DPO against him. The ruling also mandated that the FNPF compensate Mr. Kumar with $2,500 for the undue imposition of the order.
This case sheds light on the complex issues of employment classification and liability within Fiji’s healthcare sector. The High Court’s decision emphasizes the importance of procedural correctness in financial institution practices, while also raising awareness of the rights of business owners facing regulatory challenges. Overall, it reflects a commitment to fair legal processes and accountability in the enforcement of financial obligations.