Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697765530101.pdf (Fiji)
ANNUAL 2018 - 2019 Letter to The Minister Honourable Mr. Faiyaz Koya Minister for Commerce Trade Tourism & Transport Level 3, Civic Tower Victoria Parade Suva Dear Honourable Minister Re: Annual Audited Report 2018-19 I am pleased to present to you the Annual Report of the Fijian Competition and Consumer Commission (FCCC) in accordance with Section 25 of the FCCC Act 2010.

This report covers operations for the year ended 31st July 2019.
The FCCC is required to provide the Annual Report to the responsible Minister who must cause it to be laid before Parliament as soon as practicable.

On behalf the members of FCCC, I take this opportunity to thank the Fijian Government for its continuous support.

Yours sincerely ____________________________ Ms. Joann Young FCCC Chair rate rate CORPORATE STATEMENT CORPORATE STATEMENT OUR PRINCIPLES OUR PRINCIPLES Vision Vision To create a dynamic and competitive market in Fiji.


Mission Mission Fostering a competitive, efficient, fair and informed market place to enhance the welfare of all Fijians.

Fostering a competitive, efficient, fair and informed market place to enhance the welfare of all Fijians.

Values Values Professionalism, Honesty, Responsibility, Respect, Trust, Commitment, Transparency.

Professionalism, Honesty, Responsibility, Respect, Trust, Commitment, Transparency.
About FCCC is (FCCC) statutory The Fijian Competition and Consumer Commission an independent body established under Section 7 of the FCCC Act 2010 that promotes effective competition and informed markets, encourages fair trading, and protects consumers and businesses from and controls prices of regulated industries and other markets where competition is lessened or limited.

restrictive practices, Ensuring compliance with its regulatory is one of FCCC’s requirements principal objectives.
This is achieved through the use of a variety of compliance tools, giving consideration to using the most appropriate tool necessary to obtain compliance, and when required, to promote general deterrence.

Objectives of FCCC The FCCC Act 2010 came into force in 2010.

The Act establishes FCCC with a minimum of four (4) Members, one of whom shall be the Chair.
The Act sets out its objectives in Section 2(1):     promote the interests of the consumers; promote effective and efficient development of industry, trade or commerce; promote effective competition in industry, trade or commerce; and ensure equitable returns for businesses with fair and reasonable prices charged to consumers The Act further sets out FCCC’s objectives, in relation to regulated industries and access regimes under Section 2(2):    promote effective competition in the interests of consumers; facilitate an approximate balance between efficiency and environmental and social considerations; and ensure non-discretionary access to monopoly and near monopoly infrastructure or services.
These objectives provide the overarching outcomes FCCC must strive to achieve through its activities and outputs.

Functions FCCC has a statutory responsibility under the Act for:  Price control, including residential rents;  Competition adjudication and enforcement; and  Consumer protection enforcement.

FCCC is also required to provide reports and recommendations to the Minister and in this respect, it has a policy role.
FCCC also initiates litigation or defends legal challenges to its processes, and it undertakes educational and advocacy activities to encourage compliance and advise consumers and traders of their rights and responsibilities.

FCCC undertakes a range of activities with respect to each of these functions.

Such a broad range of functions provides FCCC with a degree of choice (discretion) as to which approach it will employ to resolve a market problem.
Any intervention must be appropriate to the nature, scope and size of the market problem and be directed towards improving outcomes for all consumers.

A decision about which intervention FCCC will employ must also be appropriate in the context of the Fijian economy.
ANNUAL REPORT | 2018-19 5 Table of Contents CHAIR’S MESSAGE .................................................................................................................................. 7 CEO’S MESSAGE ...................................................................................................................................... 9 BOARD OF COMMISSIONERS .............................................................................................................. 12 GOVERNANCE STATEMENT ................................................................................................................. 14 EXECUTIVE MANAGEMENT .................................................................................................................. 16 STRATEGIC GOALS………………………………….…………….…………………………………………17 ECONOMIC REGULATION ..................................................................................................................... 18 PRICE CONTROL & MONITORING ....................................................................................................... 26 COMPETITION AND COMPLIANCE ...................................................................................................... 33 LEGAL RISK MANAGEMENT & GOVERNANCE................................................................................... 37 HUMAN RESOURCES ............................................................................................................................. 39 INTERNAL AUDIT ................................................................................................................................... 43 CORPORATE & FINANCE ...................................................................................................................... 44 ANNUAL REPORT | 2018-19 6 Chair’s Message MESSAGE I am very pleased to present the 2018-2019 Annual Report for the Fijian Competition and Consumer Commission (FCCC).
This report showcases the activities undertaken in the 2018-2019 financial year and details our achievements as we continuously strive to achieve our strategic goals and our objectives.

We are committed to improvement - as the paradigm changes, as consumers and traders evolve their behaviour, and the market as a whole change, we strategically adapt as an organisation.
This financial year has been quite fruitful for FCCC - we launched our Voluntary Compliance Framework - enabling retailers to become signatories participating in a voluntary compliance and awareness program, which is an excellent example of our strategic approach.

One of our mandates is to ensure that competition in the market is fair and effective, and that competitive engagement is for the benefit of both consumers and traders.
This critical role includes the stimulation of competition where it is needed, and the regulation of markets to ensure that there is no monopolisation.

In carrying out this mandate, we use a variety of methods, but one of our most successful is stakeholder engagement and education.

We find that an informed trader or consumer is often a compliant one.

This acts as an important preemptive mitigation strategy - saving time and resources that we can better put to use in other critical areas of operation.
Another important facet of our role is Regulation.

As the economic regulator - our primary role is to correct market imbalances and failures - which is directly related to the protection of Consumer Rights and interests.

To achieve this, we undertake independent analysis and review regulated industries.

In addition to our regular reviews of the Petroleum, LPG and Pharmaceutical sectors, we for Postal Services, Food, Construction, conducted service and Telecommunications and Aeronautical Services.
industry reviews After Energy Fiji Limited made a submission proposing an increase in the electricity tariff, we conducted public consultations for an Electricity Tariff Rate Review - from which more than 4000 submissions were received from the public.

ANNUAL REPORT | 2018-19 7 To ensure clear regulatory principles and processes were communicated to regulated businesses - we created a Regulatory Reporting Requirement Framework.
This has helped foster transparency and enabled players to be aware of processes and reporting requirements.

On the Competition and Compliance front, we conducted an assessment of the acquisition of shares by Fiji National Provident Fund in the Grand Pacific Hotel to determine the likelihood of possible impacts on market competitiveness.

As part of our ongoing engagement, we received a total of 649 formal complaints, of which 238 were successfully resolved.

411 cases are still in the investigation phase.


Our periodic review of prices for price-controlled items continued to be conducted.

In conjunction with this, monitoring is an important aspect of price control.

Monitoring on price- controlled goods, and consumer goods was carried out to ensure that duty reductions provided by the Government in the 2019-2020 National Budget were passed on to consumers and to ensure compliance.
Our team conducted over 9000 trader inspections in urban, rural and maritime regions to ensure that business was being carried out in a compliant manner and that consumers were not being taken advantage of.

I would like to thank FCCC’s Management Team and Staff - their diligence and dedication are paramount in ensuring that we met our strategic goals and objectives.
I would also like to thank the Honourable Minister, and the Permanent Secretary for Trade, Industry and Tourism for their insight and unwavering support.

I would finally like to thank the Board for their guidance, which is critical to FCCC achieving its mandate.

FCCC will proudly continue to play an important role in fostering socio-economic development for Fiji - always striving to achieve our objectives through the continuous fulfillment of our functions.
On behalf of the Board and the Commission - thank you to all who have helped in achieving success this financial year!

_______________________________ Joann Young FCCC Chair ANNUAL REPORT | 2018-19 8 CEO’s MESSAGE Bula vinaka!

I am proud to present the Fijian Competition and Consumer Commission’s (FCCC) Annual Report for the 2018-2019 financial year.

FCCC plays a critical role in the Fijian economy.


As the only enforcement agency, empowered by The Fijian Competition and Consumer Commission Act 2010, which sets the legal framework by which we operate, we take our role in educating and regulating markets, the protection of consumers and businesses, and the fostering of effective competition and fair-trading practices - very seriously.
This year was a busy one for FCCC - with thousands of inspections conducted across the urban, rural and maritime zones of Fiji.

After analysing our inspections and complaints data, we found that several traders were not intentionally breaching the FCCC Act - while there was commitment from directors execution by their ground staff was a problem, they simply lacked knowledge on consumer protection.
This valuable insight changed our approach and sparked the birth of a framework that has improved how we engage with traders - our Voluntary Compliance Framework.

This framework, focussing on trader education workshops, has proven itself to be very effective.

This strategic approach, backed by our analysis of data from trader behaviour and infractions gathered by our on-the-ground teams, has been very fruitful for FCCC.
This has enabled us to focus more on stakeholder engagement - with awareness and education as the main objective.

Thus, our mandate to stimulate competition whilst regulating markets, where necessary, to ensure that monopolisation is not present, is being fulfilled in a manner that also enables us to continually engage with our stakeholders.

Regulation is a very important market pillar.


As Fiji’s economic regulator, we ensure that market imbalances and failures are corrected, enabling the protection of Consumer Rights at a national level.

To this end, we regularly review regulated industries, and undertake independent analysis to determine ideal market conditions.
Apart from our regular market reviews of the Petroleum, LPG and Pharmaceutical sectors, we reviewed Postal Services, Food, Construction, Aeronautical and Telecommunications Services.

We also conducted widespread public consultations for a review on Electricity Tariff Rates after Energy Fiji Limited made a submission to increase the electricity tariff.

We received thousands of submissions from all over Fiji and were able to directly speak to Fijians on the ground.
ANNUAL REPORT | 2018-19 9 One of our major highlights for this financial year was the creation of our Regulatory Reporting Requirement Framework - to ensure that regulated businesses were well informed on regulatory principles and processes, and on our reporting requirements.

In the area of Competition and Compliance, we conducted assessments of merger transactions to determine possible impacts on market competitiveness.
Additionally, we received hundreds of formal complaints from consumers and traders this year, and I am proud of the dedicated team who work hard to ensure that these complaints are addressed - in terms of complaints received, the worst three industries were Automotive, Construction and White goods.
We continued to review price-controlled items and monitor compliance to ensure that adherence remained high and that duty reductions provided by the Government in the 2019- 2020 National Budget were passed on to consumers.

FCCC successfully reviewed price control orders which included three service reviews and Items, Reinforcement Steel Rods, two Interconnection Services Rates and Aeronautical Services.
for Postal Services, Food industry reviews To do this we assessed the current level of competition, socio-economic environment, policies and included the views and suggestions of stakeholders.

Considering the responses, assessments were made as to whether the specified goods or services should be placed under regulatory control or that an existing order should be amended or revoked.
The five price control orders were issued to place certain goods and services under regulatory oversight for a further three years.

FCCC also conducted on the ground awareness sessions with cane harvester owners, operators and farmers in both Northern and Western Divisions as part of our Sugarcane Mechanical Harvesting Awareness market investigation.
The FCCC commenced a review of the charges for the FINTEL cable landing station and for other services - this will make important contributions towards the Fijian economy and presents opportunities to deliver high-speed low-cost internet connectivity, and associated economic and social benefits, including bridging the digital divide for many Fijians.

Our electronic pricing portal was launched in January 2019.
The system minimises time taken in assessing submissions and releasing new prices to stakeholders, thus reducing compliance costs for stakeholders.

This year, a total of 1829 product price reviews were conducted all around Fiji.

FCCC prides itself on being dynamic and ever-evolving.

As we continue to change - so must the dedicated women and men who make up our team.
Our employees are diverse, and together with an environment that supports and encourages collaboration, partnership and innovation - we are better positioned to achieve our mission and vision.

ANNUAL REPORT | 2018-19 10 We have 71 employees, of which 40 per cent are female - a testament to our commitment to gender equality.

To all FCCC staff - thank you.

Your willingness to serve the people of Fiji and your tireless dedication to your work is without comparison!
I would also like to thank the Honourable Minister and the Permanent Secretary for Trade, Industry and Tourism for enabling us to successfully deliver to our stakeholders.

Finally - we would not be able to find success without the strong leadership provided by my Board.

Their faith, and the guidance are instrumental in steering the Commission towards achieving its objectives.
FCCC remains committed to providing our stakeholders with the best, for the good of all Fijians, to preserve their human dignity against unfair and restrictive trade practices.

Thank you all for another successful year!


_______________________________ Joel Abraham Chief Executive Officer Fijian Competition and Consumer Commission ANNUAL REPORT | 2018-19 11 Board of Commissioners COMMISSIONERS JOANN YOUNG Ms. Young has over 20 years of experience in trade and agriculture policy, having worked international organisations.
She has also served in various boards in Fiji and was appointed as Chair for FCCC in September 2015. for national, regional and ISIKELI TIKODUADUA Mr. Tikoduadua is a banker by profession with more than 30 years of banking experience.

He has worked for the Bank of New Zealand (BNZ), Australia New Zealand Banking Group (ANZ) and retired as CEO of HFC Bank in June 2016.
Mr. Tikoduadua is currently the Chair of Special Administrators for Suva City and Lami Town Council, Chair of the University of the South Pacific MBA Advisory Committee and Chair of Merchant Finance Limited.

Other than this, he also serves as a Director of Vodafone Fiji, Director of Tower Insurance Ltd, and Director of i-Taukei Land Trust Board (TLTB).

He was appointed as a Commissioner for FCCC in September 2015 and as Deputy Chair on 10 November 2017.
Vimlesh Sagar Mr. Sagar has over fifteen (15) years’ experience in Finance gained from dynamic and multi-cultural organizations.

He possesses multiple skills covering many financial areas such as laws, financial analysis and management, budgeting, auditing practices, taxation, annual reporting, economic regulations, ethics, corporate governance and change management.
He is a Member of Australian Institute of Company Directors (MAICD), Fiji Human Resources Institute (FHRI), Australian Human Resources Institute (AHRI) and CPA Australia.

Mr. Sagar is also an Associate Member of Association of Certified Fraud Examiners (ACFE) and a Fellow Member of the Institute of Managers & Leaders (FAIM).

He was also appointed as a member of the selection panel for the Young Entrepreneurship Scheme (YES) in August 2018.
He is also a member of the selection panel for the Research and Innovation Scheme for Enterprises (RISE).

He is currently the Chief Financial Officer / Company Secretary of the Fijian Broadcasting Corporation Pte Ltd. Additionally, Mr. Sagar serves the people of Fiji as Justice of the Peace.

He was appointed as a Commissioner for FCCC in September 2015.
ANNUAL REPORT | 2018-19 12 Romil Patel Mr. Patel being the founder and CEO of Jewels, Fiji and is also the Administrative Director and Shareholder of South Pacific Recordings (SPR), Director and Shareholder of All Foods (Fiji) Limited, Kebab King (Fiji) Limited and Information Nest Solutions (Fiji) Limited – an IT company providing services to State Owned Enterprises and Private sector.
Other than this he is also serving as the Director & Board Member of Port Denarau Centre Management Limited and as a Board Member of the Trade Standards Advisory Council of Fiji.

Mr. Patel is also an Accredited Jewelry Professional from Gemological Institute of America.

At present, Mr. Patel is also a serving member of the Australian Institute of Company Directors, Gemological Association of Australia (GAA) and Treasurer for the Rotaract Club of Nadi.
He was appointed as a Commissioner for FCCC in September 2015 Lyanne Vaurasi Ms. Vaurasi is a lawyer by profession with more than 6 years of experience.

She has worked at the Office of Attorney General from July 2011.

She is also a member of the Australian Institute of Company Directors.

From April 2016, Ms. Vaurasi is the Deputy Chief Draftsperson at the AG’s Office.

She was appointed as a Commissioner FCCC in September 2015.
ANNUAL REPORT | 2018-19 13 Governance Statement STATEMENT “The Board of Commissioners, Executive Management and staff of FCCC are committed to deliver benefits of competition regime to all Fijians with regards to economic development, greater efficiency in trade and protection of consumer welfare in an ethical, fair and transparent manner.” Under Part 1 Section 2 (2) of FCCC Act 2010 FCCC has the following objectives in relation to regulated industries and access regimes to: a) promote effective competition in the b) interests of consumers; facilitate an approximate balance between efficiency and environmental and social considerations; c) ensure non-discriminatory access to near monopoly monopoly infrastructure or services.
and The performance of FCCC is documented in the annual report and submitted annually to the Parliament.

The Board The Board sets the long-term strategic direction of FCCC by balancing the needs of various stakeholders.

Board is overall responsible for the corporate governance in FCCC and ensures that the organization develops and implements strategies and to achieve the policies to enable objectives/goals set out in the FCCC Act 2010 and Strategic Plan 2018-23. it 1.
Board Responsibilities Overall, the Board has responsibility for all matters relating to the policies, practices, management and operations of FCCC.

It is required to do all things that may be necessary to be done to achieve the objectives of FCCC.
Without limiting this general role of the board, the principal responsibilities include:  Acting as an interface between FCCC and its stakeholders;  Setting the strategic goals of FCCC;  Reviewing the annual progress and the in meeting performance objectives;  Providing direction; the overall strategic  Determining policies governing the operations of FCCC;  Appointing and approving the terms and conditions of Chief Executive Officer;  Reviewing and providing feedback on the performance of the CEO;  Endorsing the terms and conditions for senior executives reporting to the CEO.
 Establishing and determining the powers and functions of the sub- committees of the board;  Approving major operating plans;  Approving the annual budget and long-term budgets;  Approval of all banking facilities;  Approving all significant items of capital expenditure  Keeping the market informed about FCCC in accordance with rules in place;  Reviewing its own performance;  Resolution of major issues of material nature affecting the organisation; ANNUAL REPORT | 2018-19 14  Approving management reporting processes and documentation; and  Approving all significant contracts, other Commission leases and commitments.
2.
Corporate Governance Charter At all times the Board will:  Act honestly in the best interests of the whole Commission;  Use due care and diligence in performing its functions;  Not make improper use of information;  Avoid conflicts of interest;  Exercise independent judgment;  Treat confidential information as the property of FCCC;  Making certain that the board has the to ensure necessary effective decision making; information  Ensuring that administrative tasks such as circulation of board papers are carried out;  Directing board discussions so that there is an effective use of time and that critical issues are discussed;  Developing an ongoing and healthy relationship with the CEO; and  Be available to offer guidance to where Management Executive required.
5.

Responsibilities of the Board Secretary  Not engage in conduct liable to bring FCCC into disrepute; and The Board Secretary will:  Ensure that all company legislative Comply with the spirit as well as the letter of this Charter.

3.

Establish Clear Responsibilities for Board Oversight the  Clarify A framework should be designed to:  Enable the Board to provide strategic guidance for the entity and effective oversight of management.
roles and respective responsibilities of board members and senior executives in order to facilitate board and management accountability to both FCCC and its stakeholders.

 Ensure a balance of authority so that no single individual has unfettered powers.

4.
Responsibilities of the Chair These include:  Ensuring that the board provides leadership to the organisation;  Ensuring that the board is participating in setting the aims, strategies and policies of the organisation;  Guaranteeing that there is adequate monitoring, pursuit and performance of the goals of the organisation; obligations are met;  Ensure that the board papers are circulated to directors a reasonable time before the board meeting;  Record, maintain and distribute the minutes of all board and board subcommittee meetings as required;  Prepare for and attend all meetings of the Board; and  Provide counsel for corporate governance principles.
introduced an Internal Audit 6.

In improving its governance structure, FCCC Internal Audit function as an independent professional arm of FCCC.

It reports directly to the Board through Finance and Audit Sub- Committee (FASC).

The Internal Audit function is an assurance and consultant agent for FCCC.

It applies the risk- based audit approach to identify and assess risks, which exists and recommends control measures to mitigate the risks whilst improving the overall process of the organisation.
ANNUAL REPORT | 2018-19 15 Executive Management MANAGEMENT Joel Abraham Chief Executive Officer Mr. Abraham is the Chief Executive Officer for the Fijian Competition and Consumer Commission since September 2016 till date.

He has served as the Deputy CEO/ Manager Compliance & Fair Trade at the Fiji Commerce Commission from April 2010 to July 2015.

He has also served as the Senior Research Fellow Price Control & Monitoring at the Fiji Commerce Commission.
He has also worked as a Finance and Business Advisor for firms such as Zura Pty Ltd Australia and Cardno Emerging Markets (Australia) Limited.

Mr. Abraham has successfully completed his Master of Commerce in Professional Accounting from University of the South Pacific (USP) prior to which he attained his Bachelor of Commerce-Accounting & Financial Management and Economics from USP as well.
He has further attained a Master of Arts Programme in International Relations and Diplomacy from the University of Fiji and has also completed a Post Graduate Diploma in Climate Change from USP.

He is an Associate Member of CPA Australia and Associate Member- Association of the Certified Fraud Examiners.

He currently serves as a Board member for organizations such as Fiji Sports Council and Fiji Meats Industries Board.
Senikavika Jiuta General Manager Operations Ms. Jiuta is the General Manager Operations for the Fijian Competition and Consumer Commission since February 2019 till date.

She has previously worked as the Manager Legal, Risk & Governance at FCCC and served in a wide range of areas including Board Secretary, risk management, governance, regulatory reviews, pricing reviews and financial reviews.
Ms. Jiuta had worked as a Legal Officer then to Senior Legal Officer with the Legal Aid Commission where she served in various divisions.

She holds a Bachelor of Law and Professional Diploma in Legal Practice from the University of the South Pacific.

She also serves as a Board member for the Housing Authority of Fiji and the Public Rental Board.

ANNUAL REPORT | 2018-19 16 Our Strategic Goals GOALS Strategic Goal 1 Market for goods and services in Fiji are competitive.
Strategic Goal 2 Consumers in Fiji are offered goods and services that are safe and are provided with adequate and accurate information about goods and services.

Strategic Goal 3 Regulation, including price control, is applied where competition is not effective, and efficient outcomes can be achieved without imposing excessive administrative or compliance costs.

Strategic Goal 4 FCCC is regarded by Government business and the public as an independent and expert body.
ANNUAL REPORT | 2018-19 17 ECONOMIC REGULATION Regulation is an important means for accomplishing Government policy objectives while driving market economies.
As the Economic Regulator, Competition and Consumer Protection agency, the primary role of the FCCC in line and Government policy is to correct market failures thus enhancing the welfare of all Fijians through the promotion of competition and fair trade, regulating prices of certain goods and services provided by regulated entities and the protection of consumers’ rights and interests.
The Economic Regulations department is responsible for determining the prices of products controlled by the FCCC pursuant to a Price Control Order and undertaking independent analysis and review on any industry engaged in the supply of electricity, water, sewage, post, broadcasting, telecommunications, ports, civil aviation or any other industries that is declared subsequently in Section 5, Regulated Industries of the FCCC Act 2010.
Through economic regulation, the aim is to get the right balance between providing incentives and equitable returns for regulated businesses to invest and ensuring that consumers are charged prices that align with the cost of the goods or services they receive.
A number of major projects were carried out by the Economic Regulations department during FY2019-20 to support FCCC’s ongoing service delivery capability; including market studies and assessments to support policy recommendations to relevant government agencies.

The current structure of the department includes seven (7) members: Manager Economic Regulation, two (2) Senior Market Analysts, two (2) Market Analysts, and two (2) Assistant Market Analysts.
The summary of the major activities for the year are summarized in the next section.

QUARTERLY PRICE RESTATEMENTS Included in the quarterly restatements are the Pharmaceutical sector, Petroleum and LPG sector.

Thorough this pricing mechanism, FCCC has effectively ensured that domestic price movement is aligned and the symmetrical movements corresponding to world market prices.

Petroleum & LPG Price Reviews A total of four (4) price restatements were carried out in the year for both Fuel and LPG products.
The “quarterly restatements” of prices were based on three (3) months average of international benchmark costs, the exchange rate and international freight charges.

There has been significant movement in the international crude oil prices and refined product prices during the year August 2018 to July 2019.
The price changes are depicted as follows: ANNUAL REPORT | 2018-19 18 FIGURE 1: Retail Price of Petroleum Products FIGURE 2: Fuel Products Usage $2.24 $2.07 $1.97 $1.72 $2.18 $2.02 $1.90 $1.68 D J F s e c i r P l i a t e R $2.09 $1.92 $1.89 $1.63 $2.00 $1.84 $1.82 $1.54 $2.18 $2.02 $1.89 $1.62 Motor Spirit Gasoil Premix Kerosene Date of Price Change FIGURE 3: Retail Price of LPG Products FIGURE 4: LPG Products Usage $181.60 $161.60 $141.60 $121.60 $101.60 $81.60 $61.60 $41.60 $21.60 $1.60 Per Kg 12Kg Cylinder 4.5Kg Cylinder 13Kg Cylinder Pharmaceutical Items Prices In the period August 2018 – July 2019, a total of four (4) reviews were carried out based on the tender process of which traders were invited to make submission for the review of regulated pharmaceutical products.
The pricing methodology adopted by FCCC is based on the tender process whereby the most efficient supplier determines the prices and is valid for a quarter.

Upon the computation of the in-store costs, analysis was performed to determine the efficiency of shipments and adoption of a uniform price through comparisons with costs of products with identical pack sizes in the same product category by different suppliers.
ANNUAL REPORT | 2018-19 19 PRICE CONTROL ORDER REVIEWS The FCCC exists to enforce a number of general and specific regulatory regimes.

In FCCC’s effort to ensure that it improve its regulatory role, FCCC has carried out reviews of the existing industry and price control items and services.

For the year 2018/2019, FCCC has successfully reviewed five (5) price control orders which includes three (3) service reviews and two (2) industry reviews.
These included (1) Postal Services, (2) Food Items, (3) Reinforcement Steel Rods, (4) Interconnection Services Rates and (5) Aeronautical Services.

The study included assessment on the current level of competition, the social and economic environment and policies and included views and suggestions of the stakeholders and users of such products/services in Fiji.
Generally, it was noted that there is ineffective competition in the product and geographical market and the markets at the wholesale level are controlled by a single player or few players.

These products/services are also a factor market for a wide range of product markets in Fiji.

Therefore, price regulation will ensure reasonable and fair pricing, with a trickledown effect on the product market prices.
Recommendations were made as to whether the Minister should declare that the specified goods or services should be placed under regulatory control or that an existing order should be amended or revoked.

The five (5) price control orders were successfully placed under regulation for a further three (3) years.

Table 1 provides the price control order issued for the year.
Table 1: Price Control Order Studies Reviewed Order FCCC (Control of Prices for Postal Services) Order 2018 14 Sept 2018 Effective Date Expiry Date 14 Sept 2021 FCCC (Price Control) (Control of Prices for Food Items) Order 2018 FCCC (Control of Prices for Reinforcement Steel Rods) Order 2018 FCCC (Control of Prices for Interconnection Services Rates) Order 2018 FCCC (Control of Prices for Aeronautical Services) Order 2019 30 Sept 2018 29 Sept 2021 14 November 2018 13 November 2021 21 November 2018 23 June 2019 21 November 2021 23 June 2022 MARKET INVESTIGATIONS Sugarcane Mechanical Harvesting Awareness In 2017, the FCCC determined the Sugar Cane Mechanical Harvesting rate of $17.50 per tonne.
The sugar industry was one of the focus sectors for the FCCC as such awareness sessions were scheduled for the mechanical harvesting rate for harvester operators.
Awareness session were scheduled for both pre-and harvesting seasons based on the following objectives; ANNUAL REPORT | 2018-19 20  To raise awareness to Mechanical Harvester Owners on the provisions of the FCCC (Control of Prices for Mechanical Harvesting Services for Sugar Cane) Order 2017 and the Authorisation, before the cane harvesting season starts and consider issues and concerns which they may have faced from the last harvesting season;  To address non-compliance cases against Mechanical Harvester Owners.
As such, an awareness session on the requirements of the regulation became necessary.

For the financial year 2018/2019, the FCCC had successfully conducted its awareness session through face-to-face consultations with harvester owners, operators and farmers in both Northern and Western Divisions.

INDUSTRY REVIEWS Electricity & Energy Sectors Off Grid Electricity Tariff The FCCC determined the rural off-grid (micro- grid) electricity rate namely for Vio village for the first time.
The initiative involves bringing clean, affordable rural electrification to rural communities via the Fiji Rural Electrification Fund where the premise of submission was that the project will be able to generate sufficient revenues from the retail tariff such that the Fund can invest those revenues in new sites in a timely manner.
to policy achieve FCCC notes that the project aligns with the Government 100% electrification, with 81% share of electricity generated from renewable resources by 2020, rising to 99% by 2030.

Furthermore, it aligns with the Climate Action Plan, engages local communities, collaborative catalyses partnerships to promote permanent solutions for sustainable environment and enhances human welfare.

Electricity is a regulated industry under Section 39 of the FCCC Act 2010.
The quality of regulation within the electricity sector plays a significant role in growth and development of any country.

Based on FCCC assessment, the FCCC issued the Interim Authorisation on Off-Grid Electricity for Vio Village to the Fiji Rural Electrification Fund, effective from 5 November 2018.
Electricity Tariff Rate Review In the 4th quarter of 2019, Energy Fiji Limited made a submission to FCCC for the ‘Revision of the Electricity Tariff Review’, proposing an increase in the existing average electricity tariff by ANNUAL REPORT | 2018-19 21 17.27%.

This tariff increase was to cover for the increasing cost of providing electricity in the three (3) main regions of Viti Levu, Vanua Levu and Ovalau till the next tariff review.
Written and oral public consultations including consultations with key stakeholders were carried out prior to making a decision on setting and changing the tariffs.

A total of 27 public consultations sessions were conducted by FCCC throughout the three (3) divisions - Central, Western and Northern.

More than 4,000 submissions were received.


FCCC carried out the review by making reference to the financial position of Energy Fiji Limited, best industry practices in other countries and to align the policies with that of the interest of all Fijians.

One of the key objectives of any developing country is to provide affordable access to modern energy services in order to support economic and social development of the business sector and society at large.
Fiji has made steady progress towards universal electricity access and utilisation of renewable energy resources for power production.

The review was in progress as at 31 July 2019.

LPG Products Operating Cost Review A review of the operating cost structure was undertaken for the two (2) LPG companies to ensure correct variables were being used for pricing purposes.

The last review was last carried out in 2012.


The price revision was also with the view of enabling the companies to manage their cash flow due to concerns of increased world market butane price and cash pressure due to certain capital projects.
Phase 1 of the review authorised the prices for 50kg Cylinder and Bulk LPG that became effective from 26 October 2018, while the final phase resulted in new prices for LPG products effective from 4 December 2018. Review of Petroleum Product Prices Based on New Fuel Standards The new fuel standard covers the technical requirements of Euro 5 Diesel and Euro 4 Unleaded Petrol (ULP) which came into force in 1 January 2019.
The New Trade Standards (Fuel Standards) (Amendment) Order 2018 was gazette to improve the quality of fuel.

This reduces sulphur level for Diesel from 500ppm to 10ppm and Unleaded Petrol from 500ppm to 50ppm.

The FCCC reviewed regulated fuel prices to enable recovery of cost associated with new fuel standard.

During the year, FCCC had also reviewed the demurrage cost component of the pricing template and regulated asset base for determination of return on investment.
Furthermore, FCCC assessed the pricing of Petroleum and LPG products for an outer-island trader and recommendations were made in view of the transportation and cartage cost incurred.

Petroleum/LPG Products Procurement System Price stability in the Petroleum and LPG sector which also includes efficiency in distribution and availability of petroleum products is one of the very core drivers to a countries’ economic and social development.
As a proactive measure to remove price volatility in the market and ensure the maintenance of a stable price, policy consideration and recommendations were made by FCCC to advice on a ANNUAL REPORT | 2018-19 22 Bulk Procurement System.

This was aimed at the management of Fuel/LPG importation that will ensure security of supplies into the country and policy options for a fuel price stabilisation fund and subsidy.
Marina Sector Review of Passenger Levy Port Denarau Marina Limited (PDML) had made a submission proposing for an increase in passenger levy across all passenger categories.

Passenger levy is a service that is charged by PDML to the commercial operators for the passengers that embark the ship.

The marina industry has monopolistic nature.


FCCC’s role as a regulator of monopolistic situations is to promote competition in the market and protect consumer interests that may be marginalized by abuse of market power.

Hence, FCCC is required to ensure that the regulated passenger levy is fair and equitable.

The FCCC assessed PDML’s submission and also undertook consultation with interested parties.
As part of FCCC’s regulatory review, the new Passenger Levy was authorized effective from 1 April 2019 for Adult/Child and Local/Staff categories.

Construction Sector Review of Cement Prices During the year, FCCC received two (2) submissions from the cement manufacturers, namely from Tengy Cement Group and Pacific Cement Limited, for local cement wholesale prices.
This review is aligned with the Fijian Government National Development Plan in terms of building a sustainable and globally competitive manufacturing and commerce industries with policy to stimulate growth of domestic trading sector.

A comprehensive review of the cost structure and operations was carried out for the cement companies and detailed financial and non-financial information was evaluated for the purpose of ascertaining the proposed increase and the associated cost components.
The review into the wholesale cement pricing was completed and new prices were made effective from 1 October 2019 for Pacific Cement Limited.

Submission for Tengy Cement Group was put on hold waiting for further information.
Telecommunications Sector Review of Local Interconnection Service Rate Under the Fijian Government’s 5 & 20-year National Development Plan, Government policy is aimed at promoting universal access to information and competitive telecommunication services delivered on a secured platform.
This includes the following strategies to achieve the following goals: improve the telecommunications infrastructure;   provide equal access to ICT;  strengthen the regulatory framework;  strengthen ICT capabilities in the workforce; and  promote the use of “Green” technology.

ANNUAL REPORT | 2018-19 23 Telecommunications is declared as a regulated industry under Part 1, Section 4 of the FCCC Act 2010.
Interconnection is a critical feature of telecommunications networks, as it enables subscribers on one (1) network to call and to be called by subscribers on another network at a price which would not have been possible in the absence of a price control order.

During the year, a review into the local interconnection service rates was undertaken and the new interconnection service rates were authorised based on a phased glidepath approach.
In making this authorization, it was noted technology has evolved which justifies the reduction in rates and consumers will benefit over time.
The Final Authorisation for Prices of Interconnection Services and Off-Net Retail Rates was effective from 10 June 2019 as shown on Table 2:ices for Table 2: Local Interconnection RatesInterconnection Services in Fiji Description Mobile to Mobile Network Termination (MTM) June Authorised Rate per Minute (FJD) 10 2019 0.07 10 2020 0.06 10 June 2021 0.05 June Mobile to Fixed Network Termination (MTF) 0.05 Fixed Line to Mobile Network Termination (FTM) 0.07 0.05 0.06 0.05 0.05 Review of FINTEL Cable Landing Station Charges The FCCC commenced a review of the charges for the FINTEL cable landing station and for other services which are important for the provision of broadband services to retail customers in Fiji.
A cable landing station is the point at which the submarine cable connects into the land- based infrastructure or network.

This is a crucial link connecting Fiji to the world via internet broadband services.

The review noted that the landed capacity of all operators increased substantially since the initial Determination came into effect, at a rate not matched by any increase in the costs incurred by FINTEL in providing the service.
Having regard to the overall cost reductions in cable capacity, the number of cables being supported by FINTEL at the cable landing station and the general changes in technology, the FCCC had determined that the charge should be amended to $4,000 per Gigabits (Gb) per month reflecting “lit” capacity.

This represents a significant price reduction from the current charge of $4,000 per STM-1.
The Coordination of Access Approval and Landing of Capacity Service one-off charge of 15% ceased to apply and the Co-location Service was revised from $125 per square foot to $1,500 per square meter.

The new FCCC Authorisation was effective from 10 June 2019.

The impact of this Authorisation will make important contribution towards the growth and development of Fiji’s economy and presents opportunities to deliver high-speed low-cost internet connectivity, and associated economic and social benefits.
Call Rounding Mechanism The FCCC received a submission from one (1) stakeholder requesting an amendment to the call duration rounding mechanism in respect of incoming international inbound calls to Fiji.

The effect of this would be to change the rounding from “second plus second” to “minute plus minute”.

The FCCC carried out an independent analysis on the migration into minute billing ANNUAL REPORT | 2018-19 24 system and also conducted consultation with the related stakeholders.
There is no impact on consumers in Fiji as cost will be absorbed by international markets outside Fijian jurisdiction.

The FCCC recommended 60-60 rounding shall apply to the international and domestic transit charges.

Incoming international calls and national transit shall have consistent rounding to nearest minute.
Negotiation of National Fibre Access Agreement with Telecom Fiji Limited Digicel (Fiji) Pte Limited made an application to the FCCC for arbitration and determination for an access agreement that would enable Digicel to obtain lawful access to the domestic fibre network owned and controlled by Telecom Fiji Limited.

The FCCC proceeded to convene the arbitration process on the matter and the parties mutually undertook commercial negotiations.
REGULATORY REFORMS To bring certainty into the regulatory framework, the FCCC spearheaded development of best practices and regulations that would be applied to all industries.

The FCCC recognises that industries should have the ability and confidence to do business in a good environment.

No single model will be appropriate for all the industries but clear regulatory principles and processes will provide certainty for regulated businesses.
Implementing these principles will also ensure that consumers are able to purchase goods and services at efficient prices and appropriate quality standards.

The effective regulation of markets will continue to play an important role in Fiji’s economic growth.

In the efforts to ensure transparency and improved system on reporting requirements, FCCC had completed a Regulatory Reporting Requirement Framework to guide the regulated firms and private sector on FCCC’s reporting requirements.
This ensures that everyone is aware of the processes involved, brings about greater accountability and transparency, and ensures that FCCC as a regulator stays updated with current market conditions.

The first phase of the implementation of the framework has been completed.

This will be an on-going activity.


ANNUAL REPORT | 2018-19 25 PRICE CONTROL & MONITORING The Price Control and Monitoring (PCM) department is responsible for administering price control, rent control and monitoring compliance to FCCC Act 2010 in accordance with the four (4) strategic goals outlined in FCCC’s Strategic Plan 2018-2023.
Some of the key roles include:  Conducting periodic review of prices of price-controlled items and where necessary issue price control orders through the approval of the Minister for Trade and Tourism and Transport; and determinations and authorisations through FCCC Board;  Conducting routine and strategic inspections in trading premises around Fiji to monitor compliance to FCCC Act 2010;  Receiving and investigating consumer complaints, including tenancy issues; and  Conducting market surveillance, investigations and studies to evaluate existing price control or propose price control in markets where competition has weakened or lessened, and to conduct awareness activities in conjunction with Competition and Compliance department to promote knowledge of consumer and business rights and responsibilities.
The current structure of the department includes nineteen (19) members based in the three (3) divisions (Central, Western and Northern): Manager Price Control & Monitoring, one (1) Senior Market Analyst, one (1) Market Analyst, two (2) Assistant Market Analysts, one (1) Senior Monitoring Officer, five (5) Monitoring Officers, two (2) Assistant Monitoring Officers, one (1) Senior Rent Officer, two (2) Rent Officers and three (3) Graduate Trainees.
Price Control Section This section is responsible for:  Conducting periodic review of prices of price-controlled items and where necessary issue price control orders, determinations and authorisations through the approval of Minister of Commerce Trade Tourism and Transport and FCCC Board.

 Conducting market surveillance, investigations, awareness, reviews and studies to evaluate existing price control or propose price control in markets where competition has weakened or lessened.
 Conducting market research to inform pricing decisions.

During the year, a total of 1,829 product price reviews were carried out compared to 1,814 in the last financial year.

Conducting reviews has been made easier by implementation of an Electronic Pricing Portal.

As of 31 July 2019, the system is handling pricing reviews for three (3) categories of basic food items with additional categories to be added in next few years.

The summary of reviews conducted is shown in Figure 5 below.
ANNUAL REPORT | 2018-19 26 Figure 5: Price Reviews for 2017-18 and 2018-19 700 600 500 400 300 200 100 0 Price Increases Price Decreases No Trigger First Time Others 2017/2018 2018/2019 (Source: FCCC Record) The overall percentage movement in prices for the basic food and hardware products is shown in Figure 6 below.
Figure 6: Average Movement in Prices for 2018-19 Basic Food Items Hardware Items 40.00 30.00 20.00 10.00 0.00 -10.00 -20.00 (Source: FCCC Record) The increase in price of hardware items were mainly due to inclusion of local freight costs.
The increase in price of food items around April 2019 was due to increase in the international price of wheaten products (i.e., flour) ANNUAL REPORT | 2018-19 27 The annual average price movement for food items reflected an increase of 0.35% and for hardware items, there was an increase of 1.12%.
FCCC Staff visiting Dominion Cables Warehouse FCCC Staff with Operations Manager of Tubemakers Fiji Market Reviews Two (2) market reviews were conducted during the financial year to help identify whether there is sufficient competition in the market for basic food items and wheat products.
These reviews led to the gazette of two (2) price control orders for another three (3) years: the Commerce (Price Control) (Control of Prices for Food Items) Order 2018; and the Commerce (Price Control) (Wheat Products Ex-Factory) Order 2018.

  Electronic Pricing Portal The electronic pricing portal was launched and effective from 01 January 2019.
This mandated all stakeholders to make submissions for review of prices for three (3) basic food item categories (Potato, Onion and Garlic) through the online portal.

The system has been developed to minimise time taken in assessing submissions and releasing new prices to stakeholders, reducing compliance costs for stakeholders and freeing up the Price Control team to conduct valuable market research and proper review of expiring orders.
Monitoring Section This section is responsible for:  Conducting routine inspections in trading premises in Fiji to monitor compliance to FCCC Act 2010.

 Receiving and investigating consumer complaints relating to price-controlled items and enforcing the FCCC Act 2010.

 Conducting market surveillance, investigations, awareness and studies to evaluate existing price control or propose price control in markets where competition has weakened or lessened.
ANNUAL REPORT | 2018-19 28 Price Inspections The Figure 7 below summaries the number of trader inspections carried out during the financial year.

There has been significant increase in number of inspections that were carried out compared to last financial year.

Figure 7: Annual Trader Inspection including Maritime Region s n o i t c e p s n I .
f o o N 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 (Source: FCCC Record) 7,676 4,805 1,333 280 Urban and Rural Maritime 2017/2018 2018/2019 From the inspections carried out, the Figure 8 below provides a summary of breaches by each division.

1200 1000 800 600 400 200 0 n o i t c A & s e h c a e r B .
f o o N Figure 8: Summary of Breaches and Action Taken 1087 1041 647 565 634 549 Total Breaches Detected Infringement Notice/Written warning Central Eastern Western Northern 46 16 13 Prosecution (Source: FCCC Record) ANNUAL REPORT | 2018-19 29 Market Surveillance The monitoring section also conducted surveillance of fifty (50) high-turnover items and selected items that were subject to duty reductions announced in 2018-2019 National Budget to ensure benefits were being passed on to consumers.
FCCC Staff conducting maritime price inspection at Mavana Co-operative Store located at Mavana Village,Vanuabalavu,Lau Island FCCC Staff conducting maritime price inspection at Ono-i- Lau Post Office, Lau Island Spot Checks Spot checks were carried out in every quarter in conjunction with the review of prices for fuel and LPG products.

This is summarized by each quarter in Figure 9 below.
Figure 9: Annual Summary of Spot Check 4 3 0 6 29 26 185 681 0 1 FCCC Staff conducting maritime price inspection at 2 Mavana Co-operative Store located at Mavana Village,Vanuabalavu,Lau Island 1 87 3 6 114 0 100 200 300 400 500 600 700 800 Prosecutions Warning/Infringements No.
of spot checks (Source: FCCC Record) Awareness and Advocacy FCCC uses the press releases, talk-back shows, community and school awareness, periodic articles, attendance to local government sanctioned forums, sponsored outreach programs, trader workshops, social media postings and face to face encounters to promote consumer and business rights and responsibilities and to advocate on FCCC’s role and functions.
ANNUAL REPORT | 2018-19 30 The Figure 10 provides summary of awareness activities conducted during the year.

Figure 10: Summary of Awareness Activities Total Tikina/Provincial 28 Community/Schools 65 299 Individual Trader Awareness 201 Trader Workshops 5 s s e n e r a w A f o e d o M 0 50 100 150 200 250 300 350 Number of Awareness Activites (Source: FCCC Record) Rent Section This section is responsible for enforcing rent control provisions of FCCC Act 2010.
All residential and ground leases except for those covered under the Native Lands Trust Act Cap.

134, the Banaban Lands Act 1965 and the Rotuma Lands Act 1959, are administered by the Rents Section.

During the year, this section had enforced the Fijian Competition and Consumer Commission (Rent Increase Restriction on Residential and Ground Rent) Order, 2019.

This Order is an extension of the rent freeze dating back to 2 March 2007.
ANNUAL REPORT | 2018-19 31 The number of rental complaints increased by 58% compared to last financial year.

This is shown in the Figure 11 below.

800 600 400 200 i d e v e c e R s t n a p m o C l i f o .

o N Figure 11: Rent Complaints for FY2018-19 663 407 746 372 394 352 0 2016/2017 2017/2018 Financial Year 2018/2019 Formal Informal (Source: FCCC Record) The Figure 12 below provides a summary of the nature of complaints received during the financial year.
Figure 12: Nature of Rent Cases for FY2018-19 No bond refund - 24, 7% Other - 54, 15% Record - 112, 32% Eviction - 59, 17% Illegal increase in rent - 103, 29% Record Illegal Increase Evictions Bond refund Others (Source: FCCC Record) ANNUAL REPORT | 2018-19 32 COMPETITION AND COMPLIANCE FCCC is empowered to receive and investigate complaints concerning matters affecting competition and interest of consumers under the FCCC Act 2010.
The Competition and Compliance department is responsible for receiving and investigating complaints pertaining to unfair trade.

The department engages in alternative dispute resolution mechanism, such as mediations, to enable fair and equitable remedy for consumers.
Furthermore, the department is responsible for investigating restrictive trade practices, through which it endeavors to promote healthy competition and operational efficiency with the aim of affordable prices for goods and services, increased choices for consumers and greater economic growth in the Fijian market.

The basic functions of the Competition and Compliance is illustrated in the figure below.
• Promote Effective Competition • • Investigate and notify of any Restrictive Trade Practices under part six (6) of FCCC Act 2010 Investigate offences that relate to Consumer Protection and Unfair Trade Practices under part seven (7) of FCCC Act 2010 • Educating the Consumers & Businesses through awareness • Investigate offences that relate to Conditions and Warranties in Consumer Transaction under part eight (8) of FCCC Act 2010 The current structure of the department includes fourteen (14) members based in the three (3) divisions (Central, Western and Northern): Manager Competition & Compliance, one (1) Senior Compliance Officer, eight (8) Compliance Officers (1 vacant), two (2) Assistant Compliance Officers and two (2) Graduate Trainees.
ANNUAL REPORT | 2018-19 33 COMPLAINTS HANDLING Competition Twelve (12) complaints were received on restrictive trade practices.

The FCCC investigated specific matters of anti-competitive conducts and mergers/acquisitions within and outside of Fiji.

Some of the anti-competitive matters investigated were refusal to supply when the supplier was an exclusive supplier of the products; predatory pricing practices; and possible conduct of collusion.
As part of merger and acquisition assessments, the FCCC conducted assessment of the acquisition of shares by Fiji National Provident Fund in Grand Pacific Hotel in order to determine possible impacts on competition in the market.

Compliance For the financial year, FCCC received a total of 649 formal complaints, of which 238 were successfully resolved while 411 cases were still under investigation.

FCCC personnel conducting market surveillance.


Figure 13: Complaints By Division 300 250 200 150 100 50 0 Total Number of Cases Successfully Cases Successfully Resolved Resolved and Closed Total Number of Cases in-progress Cases In Progress Eastern Western Northern The Figure 13 provides a breakdown of complaints by Divisions during the financial year.

ANNUAL REPORT | 2018-19 34 The figure 14 below shows the trend of complaints received since 2010.
Figure 14: Annual Trend of Complaints 816 719 568 368 140 649 592 384 290 900 800 700 600 500 400 300 200 100 0 l i s t n a p m o C f o .

o N 2010 2011 2012 2013 2014 Year 2015 2016-17 2017-18 2018-19 On average, the number of complaints has increased over the years due to:  Consumers becoming more aware of their rights and responsibilities.

 Traders and service providers not being aware of the consumer protection provisions and their obligations under the FCCC Act 2010.
 Businesses being engaged in unscrupulous dealings.

Worst Three Industries in Terms of Complaints Received 1.

Automotive there FCCC does not regulate the automotive industry, however is a Self- Regulating Guideline (SRG) in place that guides the industry to ensure it is compliant with the provisions of the FCCC Act 2010.

Furthermore, some motor vehicle parts and accessories are subject to percentage markup price control through Counter Inflation (Price Control) (Motor Vehicle Parts & Accessories) (No.
8) Order 1992.

FIGURE 15: TOP THREE COMPLAINTS Automotive Construction White Goods White Goods 16% Construction 27% Automotive 57% Majority of the complaints received by FCCC relating to the automotive industry were surrounding the following issues:  Traders not willing to honor warranty;  Non- disclosure of information relating to warranty;  Accepting payments and failing to supply; and  False and misleading representations about vehicles ANNUAL REPORT | 2018-19 35 2.
Building & Construction The construction sector in Fiji is a multi-million-dollar industry.

There are certain players in the market that tend to abuse their market power through refusal to supply products or services, unconscionable conduct, accepting payment without being able to supply, imposing unfair contract terms, shoddy workmanship, false and misleading representation and misleading and deceptive conduct.

3.
3.

White Goods There has been a rapid increase in number of traders entering this industry to offer a wide range of white goods products and its related services.

Traders are offering several purchase options such as cash sale, lay-buy and hire purchase, which increases consumer affordability.

Consumer complaints are increasing especially in relation to traders not honoring supplier’s warranty.
Self-Regulation – Voluntary Compliance Framework Voluntary Compliance Framework (VCF) is a proactive strategy for promoting compliance to FCCC Act 2010 by engaging the business community as a strategic partner in the process of complying with and enforcing the Act.

This was introduced during the financial year to promote self-regulation in an attempt to promote consumer welfare, reduce breaches and strengthen compliance.
This has been made possible by businesses being sincere, worthy of trust to do the right thing, and willing to work ethically in accordance with the relevant laws and legislations.

This provides them with the opportunity to promote themselves as good corporate citizens, which endears them to the consumers.
facilitates the process by providing guidance; FCCC information; training/workshops; developing code of conduct/practice; and setting out simplified compliance with periodic audit checks and notices to improve/strengthen compliance.

This strategy has enabled FCCC to promote good governance practices within the business community with the added advantage of being able to better utilize its time, money and resources on matters that have greater national impact.
The VCF has been introduced for trial in urban centers for basic food, pharmaceutical and hardware sectors.

This has been implemented with the expectation that it will become a more viable long-term solutions to achieving compliance to the FCCC Act 2010, whereby businesses are encouraged to do good rather than having legislation enforced upon them due to breaches.
ANNUAL REPORT | 2018-19 36 LEGAL, RISK MANAGEMENT & GOVERNANCE The Legal, Risk Management and Governance department has the overall responsibility of the management of legal, risk and governance of FCCC.

Legal The Legal Unit is responsible for representation of litigation matters initiated against and by FCCC.

The department provides sound and accurate legal advice, specialist drafting of legal documents.

The department also manages external lawyers who are engaged where additional resources are needed.
The three approved panel of external lawyers are Tirath Sharma Lawyers, Crompton Lawyers and Shahk Lawyers Risk Management & Governance This Unit within the Legal division is responsible for the establishment, operation and management of an enterprise-wide risk management system.

The responsibilities include, but are not limited to, assessing, monitoring and managing business risk, including strategic, operational, financial and compliance risk.
The Unit also manages risk and governance by strengthening business resilience and building an agile, adaptive culture- giving FCCC the foundations for sustainable performance in all market conditions.

Structure of Team The current structure of the department includes seven (7) members: Manager Legal Risk & Governance, one (1) Senior Legal Officer (vacant), three (3) Legal Officers (one (1) vacant), and one (1) Assistant Legal Officer.
LITIGATION MATTERS The Table 3 below provides a breakdown of matters for prosecution during FY2018-19.
Table 3: Matters for Prosecution Division Number of Cases Registered Number of Cases Judgement Delivered Number of Cases Remaining Total Fines Imposed by Court Central/Eastern Western Northern 78 31 5 20 7 19 291 48 15 $26,619 $32,395 $26,600 ANNUAL REPORT | 2018-19 37 MEMORANDUM OF UNDERSTANDING’S (MOU) The following MOU’s were entered into by the Fijian Competition & Consumer Commission during the financial year 2018/2019: 1.
Fiji Commerce and Employers Federation The MOU sets out an agreed collaboration and co-operation to: (a) protect and promote commerce and industry; and (b) exchange and advocate on consumer protection.

2.

Real Estate Agents Licensing Board The MOU sets out an agreed basis for policy coordination and information sharing between the parties for information relating to: (a) real estate; and (b) property rental market in Fiji.
ANNUAL REPORT | 2018-19 38 HUMAN RESOURCES The Human Resources department is responsible for talent acquisition, administration of talent management plan, management of employee and labour relations, administration of employee benefits and wellness programs, facilitation of staff performance evaluation process, provision of professional development opportunities for employees, maintenance of employee personnel files, management of employee risk and safety initiatives, administration of the Labour Management Consultative Committee, and provision of other vital services for the FCCC employees from their first day of employment till the end of their tenure.
The current structure of the department includes four (4) members: Manager Human Resources, two (2) Human Resource Officers (1 vacant) and one (1) Graduate Trainee.

FCCC Workforce The FCCC operates in a dynamic environment and as such, our workforce must continuously evolve.

Our employees come from a variety of backgrounds and represent our true source of diversity.
As such the workforce must be supported by an environment that encourages ANNUAL REPORT | 2018-19 39 innovation, collaboration, and partnership at all levels that consistently achieves FCCC’s Vision and Mission.

The FCCC’s workforce stands at seventy - one (71) employees as of 31 July 2019, which includes sixty-three (63) Full Time Equivalent Staff (FTE) and eight (8) Graduate Trainee.
Apart from this, two (2) fellows from Overseas Development Institute (ODI) were engaged for expertise in areas of Regulations and Competition.

The Table 4 below represents FCCC’s staff allocation as of 31 July 2019.
Table 4: Staff Allocation by Division Department Executive Management Finance & Corporate Human Resources Information & Technology Economic Regulations Price Control & Monitoring Competition & Compliance Legal Risk & Governance Audit Sub-total (FTE’s) Graduate Trainee Overseas Development Fellow Total Staff Total Staff 2 15 2 2 7 16 12 5 2 63 8 2 73 Workforce Demographics FCCC encourages gender equality and employs 40% female workers and 60% male workers.
The Figure 16 below represent the staff capacity based on gender the Financial Year Ending 2018-2019. for Performance Management Central Division 2 10 2 2 7 12 8 5 2 50 5 2 57 Western Division - 3 - - - 2 2 - - 7 2 - 9 Northern Division - 2 - - - 2 2 - - 6 1 - 7 Figure 16: Gender Analysis 0% 40% 60% FEMALE MALE OTHERS FCCC’s performance management system measures the competencies and capabilities of each staff member, through set key performance indicators at the start of each financial year.
This best practice approach ties and cascades strategic goals with the employees’ personal work goals.

ANNUAL REPORT | 2018-19 40 The organization overall has been performing well as depicted in the Figure 17 below.
Figure 17: Average Department Performance 88.00 86.00 84.00 82.00 80.00 78.00 76.00 Competition & Compliance Corporate Economic Regulations Price Control & Monitoring FCCC Average Performance Training & Development Table 5: Average Training Hours At the start of the financial year, a Training Needs Analysis was conducted to identify the areas of development at an individual, departmental, and organisational level.
This enabled formalization of an annual training calendar outlining the talent development needs throughout the organisation.

Total Training Hours 4,230 This led FCCC to achieve a total of four thousand two hundred and thirty (4,230) hours of training, which included internally organized training, externally organized training, webinars and on the job training.

The Table below provides average training hours per FTE.
Total number of FTE's Average Training Hours per FTE 71 59.58 Achievements FCCC entered the Fiji Business Excellence Awards for first time and won the Achievement Level Award.

ANNUAL REPORT | 2018-19 41 Workforce Engagement The Human Resources Department organized the following events during the financial year as part of enhancing staff engagement:  Staff birthday celebration - every month end staff birthdays were celebrated collectively in all divisions.
 Quarterly staff appreciation - every quarter, a staff appreciation event was organized whereby staff were commended and recognized for their performance over the quarter.

 Annual function – this was organized to appreciate the hard work by staff throughout the financial year and celebrate the successes of FCCC.

 Religious functions – major religious functions were celebrated to appreciate and recognize the diverse culture of Fiji.
 Corporate social responsibility – support and solidarity for a staff diagnosed with cancer.

ANNUAL REPORT | 2018-19 42 INTERNAL AUDIT DEPARTMENT The financial year 2018/2019 was a Year of Recognition for FCCC Internal Audit.

The Institute of Internal Auditors Fiji recognized the tremendous contribution of FCCC Internal Audit at a national level towards the Lagilagi Housing Enquiry by awarding a Special Recognition Award in its 2019 IIA Fiji Congress.
The FCCC CEO also presented a Recognition Award to the department for its outstanding dedication towards FCCC's vision and mission.

A remarkable achievement for the department.

The Internal Audit department took an integrated audit approach in this financial year where it carried out operational, compliance, financial and special audits simultaneously.

A summary of the audit work conducted by the department in FY2018-19 is shown in Table 6.
Table 6: Summary of Audit Work Audit Type Audit Focus Operational & Compliance Audit All Department Financial Audit Immediate Audit Issues Special Audit Finance Department All Department Lagilagi Housing Enquiry With the growing demand and expectation from audit, the Internal Audit department continues to develop its expertise through continuous trainings and has successfully completed the training shown in Table 7 below.
Table 7 - Audit Training during FY2018-19 Trainings Facilitator Audit Committee Master Program Corporate Governance Action Planning Workshop Corporate Governance & Ethics Fiji Business Excellence Award Framework Training Pacific Corporate Governance Institute Pacific Corporate Governance Institute KLaw Consultants and Innovators Business Excellence & Quality Consultant The mission of Internal Audit is to enhance and protect FCCC’s values by providing risk-based and objective assurance, advice and insight.
It accomplishes this by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

Internal Audit will continue to provide this vital role and looks forward to another successful year.
ANNUAL REPORT | 2018-19 43 CORPORATE & FINANCE The Corporate & Finance department supports the overall operations of the FCCC, which is critical in achieving the vision and mission through the delivery of key corporate services that are vital to the success of the organisation.

Primarily, the department includes functions of finance, procurement, executive support, research, communications, customer service and administration.
The current structure of the department includes twenty (20) members based in the three (3) divisions (Central, Western and Northern): Manager Corporate & Finance, Regional Manager West, Regional Manager North, Coordinator Operations, one (1) Senior Accountant (vacant), two (2) Finance Officers, one (1) Administration Officer (vacant), two (2) Projects Officers, one (1) Executive Assistant (vacant), one (1) Senior Research & Policy Officer, one (1) Communications Officer, five (5) Customer Service Officers, one (1) Registry Clerk, and one (1) Hospitality Officer.
The audited financial statements for FCCC for year ended 31 July 2019 is provided in the next section.

ANNUAL REPORT | 2018-19 44 FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st JULY 2019 ANNUAL REPORT | 2018-19 45