The Fiji Public Trustee Corporation is confronting significant revenue challenges as income from essential trust funds continues to diminish. Chief Executive Ajay Singh brought this issue to light during his presentation of the corporation’s 2020 Annual Report before the Standing Committee on Social Affairs.
Singh pointed out that fee income from trust and estate services remains the principal source of revenue for the Fiji Public Trustee Corporation. He noted, “I think 2020 was a good year, we did very well; 69% is a very good percentage of that fee income. However, this has declined over the years because the FNPF minor trust funds, which constituted our core revenue, are no longer with us.”
The situation is compounded by the depletion of the FNPF trust funds, which Singh warns may lead to a complete cessation of minor trust income in the near future. He expressed his concern, stating, “It’s a major concern for us, because the FNPF Act changed in 2011. After 18 years, the last funds we received from the FNPF in 2011 will be fully paid out to beneficiaries, leaving us without any income from the trust business.”
As the corporation anticipates a steep decline in trust numbers, it will increasingly depend on estate income and fees, which are expected to contribute only a limited portion to overall revenues. Singh indicated that efforts have been made to engage with the FNPF to address these challenges, but he admitted that the chances of restoring the trust income stream are quite slim. Ongoing discussions aim to explore potential solutions that could stabilize the organization’s financial outlook.
In light of these challenges, the Fiji Public Trustee Corporation is looking toward alternative strategies to adapt and thrive despite the evolving landscape of trust fund management. This may require innovative approaches to service delivery and revenue generation in order to sustain operations and fulfill their obligations to beneficiaries.