Former Prime Minister Hu’akavameiliku announced last year that Lulutai Airlines had been approved by his Cabinet on November 7 to transition into a government public enterprise.
However, it has come to light that the national carrier is still registered solely as a limited liability company, raising concerns about the former Prime Minister’s transparency and accountability.
Lulutai was registered as a private company, but Prime Minister Aisake Eke, during his time in Opposition, repeatedly challenged Hu’akavameiliku. He argued that the law requires the airline to be re-registered as a public enterprise within one year of its inception.
Dr Eke maintained that, while the airline remains a private entity, Parliament and the public—who financially supported its operations—are unable to access key information due to limitations imposed by company law.
He emphasised that this is precisely why the law mandates its transition to a public enterprise: to ensure transparency and allow both Parliament and taxpayers access to essential details about the airline.
Other accusations against Hu’akavameiliku included not being truthful about budget support from the Australian government, which he allegedly used to fund the airline; a lack of transparency in the controversial purchase of the secondhand Twin Otter; and the questionable employment of his political ally Poasi Tei as CEO of the airline shortly after Tei was dismissed from Parliament following his conviction for electoral bribery.
Former PM Defence
Hu’akavameiliku defended the decision to register Lulutai as a company since 2020 and maintained it during his tenure, stating that it was the government’s responsibility to ensure the airline’s safety and security.
The former Prime Minister denied any wrongdoing and stated that his government never secretly operated or managed the national airline.
The former PM’s accusations of controversial dealings with Lulutai had been a major concern during his first no-confidence vote, though he survived it at the time.
However, his sudden announcement in early November 2024—just weeks before his second vote of no confidence forced his resignation—that the government had approved Lulutai Airlines’ transition to a public enterprise came as a surprise.
PE Minister Revelation
In a press conference last week, Minister of Public Enterprises Piveni Piukala clarified that Lulutai Airlines has not yet been registered as a public enterprise, contrary to widespread belief.
Minister Piukala revealed that the Eke Cabinet was advised by the Attorney General that there was an error in the legal documents submitted for His Majesty’s approval, according to the law.
Piukala did not clarify when the legal documents were submitted for the King’s signature or if they were processed while Hu’akavameiliku was Prime Minister or by Prime Minister Eke.
“‘Aia taimi ni kei nofo pē ‘i he poate te’eki ‘omai ki he public enterprises” (At this time, it is still with the board and has not yet been moved to public enterprises), Piukala stated in Tongan.
This means the process must be restarted, further delaying the transition.
