The Tonga Forest company’s financial records were destroyed by former staff members, leaving TP$4 million unaccounted for.
Tongan Prime Minister ‘Akilisi Pōhiva told Parliament the staff burnt the financial records and other company possessions before they left.
Hon. Pōhiva said the records of the government-controlled entity could not be recovered.
He told the House the Auditor General had spent five years trying to unravel Tonga Forest’s financial affairs.
Minister of Public Enterprise, Poasi Tei, whose ministry controlled Tonga Forest, said the government had complained to the Police who were investigating the matter.
However, Hon. Pōhiva said he had met Police Commissioner Stephen Caldwell and his Deputy ‘Unga Fa’aoa who told him nothing had been done so far.
The Speaker did not ask the prime Minister or the Minister to clarify whether there was an investigation or not.
Instead, he said the courts would have the final say.
Police Commissioner vs Minister of Police
However, Lord Nuku joined in and said the public believed no investigation was taking place.
Some MPs voiced their concerns over the fact the Minister of Police appeared to have no power over the force.
All the powers to run the Police rested with the Commissioner of Police who was elected by a Privy Council panel, according to the constitution.
The Prime Minister agreed with a statement by Lord Tuʻilakepa that the House should change the constitution so the Minister of Police could control the Police Commissioner and officers.
The Speaker reminded the House that it was they who voted to give the power to control the Police Force to the Police Commissioner and they had the power to alter that law.
2015 Statement
In June 2015 Hon. Pōhiva submitted to his cabinet a proposal for an inquiry to be made into the Tonga Forest company.
A government statement at the time said: “Financial records and accounts of TFPL from 2011 to May 2015 pertaining to the Tonga Development Bank (TDB) loan of $4.9 million could not be located on the premises of TPFL.”
The statement said it was believed the former Accountant and Financial Manager of Tonga Forest, Ms. Glenda Hiyao and former Chief Executive Officer, Mr. David Edwards handled the draw-downs and disbursements of the loan funds and would know the whereabouts of the financial records of the corporation.
In a statement released to the media at the time Mr Edwards said: “The allegations are politically motivated and such persons are using your good office and its independence to be involved in a matter which should be properly investigated, handed to the company’s privately legal officers and if verifiable with clear evidence passed onto the Police for further investigation”.
Tonga’s forest industry has recently been the subject of a rescue deal involving a Maori iwi headed by controversial businessman Roger Pikia, who was described by the New Zealand Supreme Court as having committed fraud.
The main points
- The Tonga Forest company’s financial records were destroyed by former staff, leaving TP$4 million unaccounted for.
- Tongan Prime Minister ‘Akilisi Pōhiva told Parliament the staff members burnt the financial records and other company possessions before they left.
- Pōhiva said the records of the government-controlled entity could not be recovered.
- He told the House the Auditor General had spent five years trying to unravel Tonga Forest’s financial affairs.
For more information
Tongan forestry deal centres on controversial businessman; PM laments lack of due diligence
