The Fiji Public Trustee Corporation is facing serious revenue challenges as it grapples with diminishing income from essential trust funds. This pressing concern was highlighted by Chief Executive Ajay Singh during the presentation of the corporation’s 2020 Annual Report to the Standing Committee on Social Affairs.
Singh emphasized that the fee income from trust and estate services is the mainstay of revenue for the Fiji Public Trustee Corporation. He acknowledged that while 2020 was a relatively strong year, with 69% of fee income being notably high, there has been a notable decline over the years. A significant factor contributing to this downturn is the reduced income from the FNPF minor trust funds, which have historically been a key source of revenue for the organization. Singh noted, “The FNPF minor trust funds, which constituted our core revenue, are no longer with us.”
The issue is further exacerbated by the depletion of the FNPF trust funds, which Singh fears may result in no income from minor trusts in the near future. He expressed his concerns over the impact of legislative changes, specifically highlighting the effects of the FNPF Act amendment in 2011. With the last funds received from the FNPF scheduled to be paid out to beneficiaries by the end of 2023, the corporation is anticipating a complete cessation of its income from the trust business.
As reliance on trust fund revenues decreases, the corporation is bracing for a sharp decline in trust numbers, necessitating increased reliance on estate income and associated fees. Singh indicated that these will only contribute a limited amount to the overall financial stability of the organization. Efforts are underway to engage with the FNPF to address these financial hurdles, although Singh acknowledged that the prospects of restoring the former trust income stream seem bleak. Ongoing discussions may lead to potential solutions that could help stabilize the corporation’s financial framework.
Despite these challenges, the Fiji Public Trustee Corporation is actively exploring alternative strategies to adapt and succeed in the changing landscape of trust fund management. This pursuit may involve innovative approaches to service delivery and revenue generation, positioning the corporation to continue fulfilling its obligations to beneficiaries while navigating financial difficulties. Such adaptability is essential for ensuring the long-term sustainability of their operations.