Can Nauru Stay Afloat?

It’s a grand view from the 51st floor of Nauru House in central Melbourne, but it’s unlikely the President of Nauru is enjoying it. Since he flew out of the 21-sq.-km island on April 23, Rene Harris has been closeted in his suite here trying to solve a financial mess. Phosphate exports once made Nauruans among the world’s richest people, but those days are long gone. It’s unknown how much remains in the phosphate royalties trust that once sustained many of Nauru’s 12,000 people, and last month, seeking to recover about $A240 million owed to America’s GE Capital, receivers PPB moved on the country’s five Australian properties.

Days later, India’s Hiranandani Corp. Worldwide announced a refinancing deal and declared Nauru “saved from bankruptcy.” But PPB’s Stephen Parbery says the deal, like others before it, is a mirage; the assets will eventually be sold. “There’s no magic wand,” he says. “Talk of refinancing flies in the face of economic reality.” A government spokeswoman says talks with HCW “and several others” are continuing.

On Nauru, says 23-year-old Finea, “all people talk about is what we’re going to eat and what the President is doing.” Soap is now a luxury and Finea, a cleaner, hasn’t been paid since February. And if money doesn’t arrive? “I don’t know,” she says with a small laugh. “Maybe we’ll all drop dead.”