Efforts by the businessman Denis O'Brien to establish a mobile operation in Fiji have run into trouble on a grand scale after a series of upheavals at the board of the local business that has a partnership with his company Digicel.
Mr O'Brien's agreements with Ba Provincial Holding Company are crucial to his ambition to follow Digicel's success in the Caribbean with a network of services across the South Pacific. He eager to set up a mobile service in Fiji and establish a regional headquarters there.
But his chosen partner has been mired in a bout of corporate strife for the past week, following the discovery of "grave discrepancies" in its business. The chief executive and board were sacked, as well as 150 staff.
Local media reports said a new interim board at the company has started a review of its operations and suspended all transactions agreed on the watch of the former chief, Isimeli Bose. Mr Bose was involved in Ba Provincial's link-up with Digicel - and its sponsorship of the Fiji Rugby Union - so there is now some doubt over that relationship.
Digicel's spokeswoman said it would be inappropriate to comment on Ba Holdings "internal matters" when asked whether it was her understanding that Digicel's agreements with the company were suspended.
Ba Provincial is controlled by representatives of the provincial council of Ba, the largest province in Fiji. The alleged discrepancies in the company included a high debt ratio, misleading financial financial statements, lapses in corporate governance, high expenditure levels and gross mismanagement. There is no suggestion that any of these alleged discrepancies related to the company's dealings with Digicel.
Last April, the Fiji government granted preliminary approval for a mobile licence to Digicel and Ba Holdings. The preliminary approval was dependent on the outcome of a court challenge from Vodafone against the issue of that licence and other licence.
The Fiji government said later that the operating companies awarded licences should be owned by Fiji citizens.
The turmoil at Ba Holdings culminated in a near-riot last Friday afternoon when Mr Bose and dozens of ousted staff stormed its headquarters in Lautoka, Fiji's second city. They are reported to have "manhandled" security guards with batons and broke through the gates of the building with the help of a 10-wheeler truck, iron rods and iron cutters.
According to local media reports, 16 men were released on bail last Monday after they were charged with unlawful assembly, forcible entry and assaulting security officers. The men entered no plea, the reports said.
At a hearing of the High Court in Lautoka last week, a judge refused an application from Mr Bose for an injunction against his dismissal.
Asked about these events, Digicel's spokeswoman said it would be inappropriate to comment on internal matters at Ba Holdings.
"Digicel has approval for the granting of an approval in principal to provide GSM mobile telecommunications in Fiji and we will continue to work closely with the Fijian Government towards a successful and timely conclusion," she said.
"We look forward to the opportunity in the near future of introducing for the first time competition in the Fijian telecommunications market with quality services, increased coverage and high value offerings.
"It is our plan that Fiji will be the headquarters of Digicel's planned seamless pan South Pacific network and the company is committed to support the government of Fiji's vision for Fiji to become the region's ICT centre."
