NUKU’ALOFA—The king has approved the Eke government’s bill to eliminate the practice of Cabinet Ministers selecting members of the government’s board of directors based on cronyism.
The move delivers on a campaign promise to overhaul all government bodies, targeting reform and alleged corruption.
The reforms significantly reduced the cost of board salaries by 29%, slashing annual spending from $1.4 million to just $400,000 and shrinking the total number of directors from 35 to 16.
The seven government boards had been consolidated into five, with appointments now guided by strict “fit and proper” standards.
The government said the move would end the old practice of selecting directors based on personal ties, church affiliations, or political favouritism.
King’s approval
Prime Minister Eke announced the King’s approval of the law on Friday, marking two milestone decisions. First, any government-owned business registered as a company must also be processed and registered as a public enterprise entity.
He said the law also mandates publicly advertised recruitment processes for all director appointments.
The Prime Minister, his Deputy Prime Minister, and several Cabinet Ministers were holding a press conference on Friday.
Deputy Prime Minister Taniela Fusimālohi claimed significant financial losses across government boards resulted from unscrupulous decision-making.
He said the government’s new mandatory “fit and proper person” criteria for selecting qualified, experienced directors will make sure only decent members are selected.
Fusimālohi questioned the appointments of the former board members when he saw a list of names.
He warned that the public would ultimately bear the financial consequences of poor board decisions.
He said this was why the government sought suitable and decent people to operate the government’s businesses.
“Look at Lulutai Airlines. What is happening there raises the question of a fit and proper person.
“Tonga Development Bank, there is the same question there, a fit and proper person”.
“This is not just about saving money—it’s about ensuring qualified, independent leaders oversee public resources,” Fusimālohi said in Tongan.
“No more appointments just because someone is a friend or sits in the same pew on Sundays.”
Questions about the selection process follow a May 2022 Supreme Court case in which former Minister Poasi Tei admitted appointing Saia Penitani—a campaign helper in Houma village and ex-Ministry of Health staffer—to three boards (Tonga Power Ltd, Tonga Water Board, and Tonga Waste Authority) as Minister of Public Enterprises with Cabinet approval.
Tei denied in court that this was political payback, insisting he appointed Penitani based on trust in his ability to deliver results.
The new law
The new law mandates that government businesses be registered as companies and become public entities.
It follows allegations that the former Hu’akavameiliku government failed to register Lulutai Airlines as a Public Entity within the legally required one-year period – an omission that allowed Cabinet Ministers serving on the Lulutai board to retain their positions.
