Tuesday, August 12, 2025
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PM Eke: Deficit budget necessary as Tonga approves TOP$992.8m spending plan

Tonga’s Parliament has unanimously passed a record-breaking national budget of TOP 992.8 million for the 2025/26 financial year, set to take effect on 1 July 2025.

Finance Minister Dr ‘Aisake Eke

The largest budget in the nation’s history includes TOP$748.9 million in direct government spending and TOP$243.9 million in in-kind donor support.

Notably, it also features a projected deficit of TOP$29.1 million, which Finance Minister Dr ‘Aisake Eke defended as a necessary measure to address Tonga’s stagnant economy and spur long-term development.

Investing Through Deficit

Dr Eke outlined three possible approaches to budgeting—surplus, balanced, or deficit—and explained that the deficit was chosen to create profitable financial activities and stimulate growth.

According to the Parliamentary Hansard of 16 June 2025, he stated in Tongan: “Ko e me’a ko e patiseti ko e me’a ‘e 3 te ke ala fai: te ke fakapalanisi, pē te ke surplus, pē te ke hanga ‘o fakafe’amokaki.”

To cover the deficit, the government will secure a $43 million bond, with $13 million earmarked for bond repayments in the upcoming fiscal year and the remaining $30 million directed toward the private sector through an emerging domestic bond market.

He previously claimed no government had implemented it as a policy.

Dr Eke said his $30 million market bond policy is a trial initiative aimed at facilitating fish imports from Fiji. He stated that fish from Fiji would be affordable and would help reduce health issues in Tonga caused by meat consumption.

He had warned that failure in the initiative would lead to its discontinuation and a search for alternatives. His parliamentary remarks revealed the broader goal: to establish a private sector-sustained financial mechanism for economic growth.

His policy is part of a broader strategy to inject vitality into the economy, with key allocations targeting infrastructure upgrades, renewable energy projects, and a newly established Community Road Maintenance Fund.

The latter will provide TOP 100,000 to each of Tonga’s 17 constituencies, ensuring local road maintenance and community development.

Deficit Sparks Debate

The deficit budget, however, has not been without controversy. Last week, the former Minister of Infrastructure raised concerns in Parliament about the legality of the $43 million bond and the decision to run a deficit.

Dr Eke responded by saying that budgets are crafted using economic tools referred to as “macroeconomic management”. Additionally, the National Reserve Bank utilises different tools to regulate activities within the banking sector.

Considering these factors, he ultimately concluded that a deficit budget was the appropriate approach.

With the budget now approved, the government’s next steps include annual constituency visits in July 2025 to engage with communities on budget priorities, followed by a general election in November.

US issues latest warning to Tonga; fix passport system now or face travel ban – PM confirms response is coming

The United States has proposed improvements for Tonga and 35 other countries to comply with the demands of the Trump Administration in order to avoid bans on their citizens’ entry into the U.S.

The update came before news that Senegal, a Western African nation listed alongside Tonga on the potential ban list, has been banned.

It was reported two days after a Trump Administration memo, which reportedly identified various benchmarks these countries did not meet.

The memo said these countries had “no competent or cooperative central government authority to produce reliable identity documents or other civil documents,” or they suffered from “widespread government fraud.” Others had large numbers of citizens who overstayed their visas in the United States.

The latest warning said failure to comply could result in Tongan nationals being barred from US travel until changes are made.

Tongan Prime Minister ‘Aisake Eke expressed deep concern over the threat, stating his government was “seriously alarmed” by the US stance.

He confirmed that the Crown Prince and his Ministry of Foreign Affairs are working with the US Embassy in Tonga to draft a formal response, with updates expected soon.

Tongan Passport Scheme

Tongan passports gained notoriety in the 1980s due to a controversial scheme to sell them illegally in Asia for revenue.

The scandal led to a constitutional amendment legalising the sale of the passports to 426 Chinese nationals.

Although authorities declared an end to passport sales after the unexpected 1991 constitutional change, Kaniva News uncovered cases in the 2010s proving the trade persisted, with Asians among the buyers.

Activists, including the late ‘Akilisi Pōhiva, alleged that Tongan blank passports and immigration stamps were being fraudulently obtained and exploited by some foreign intermediaries.

Despite King Tupou IV announcing that US$26 million had been collected from the scheme, the money was completely lost in the U.S. after the king appointed his court jester—an American entrepreneur—to invest it.

No official documents are available to record the details of the transaction, but critics, including Pohiva, speculated that far more than tens of thousands of passports had been sold.

The passport scandal became an international disgrace after it was revealed that international criminals exploited the national documents for global travel. 

Imelda Marcos, wife of former Philippine dictator Ferdinand Marcos, got a Tongan passport. The former Hong Kong Stock Exchange chief, Ronald Li, serving a four-year jail term for bribery, and textile billionaire Chen Din-hwa were also reportedly among the now legal passport holders. 

US Passport Concerns

US State Department spokeswoman Tammy Bruce declined to detail the specifics of the issues raised but emphasised that the administration expects nations to enhance their passport vetting systems.

“We’re looking at providing a period of time, (where if countries) don’t get to that point where we can trust them and they’ve got to change the system, update it, do whatever they need to do to convince us that we can trust the process and the information they have,” the Associated Press reported Bruce as saying.

In 2020, the U.S. Census Bureau reported 78,871 people of Tongan descent living in the United States. One of Tonga’s largest religious denominations, the Mormon Church (based in Utah), has a long historical connection with the United States and is affiliated with BYU-Hawaii.

Tongans in NZ outraged as Nuku’alofa Customs auctions off stranded shipments—freight companies blamed

Auckland, NZ — Tongan families in New Zealand are expressing anger and heartbreak after the Tonga Ministry of Revenue & Customs announced it would auction off their long-delayed shipments.

Customs officers oversee auction preparations at Queen Salote Wharf in Nuku‘alofa, Tonga. Items include uncleared vehicles, electronics, and household goods—many sent by Tongans abroad. Photo/Ministry of Customs & Revenue

Many expressed outrage toward shipping companies, alleging they were deceived into paying thousands of dollars while their goods were never cleared through Tongan Customs.

Kaniva News is withholding the companies’ names and owners as we are currently investigating and liaising with authorities. We will publish further updates on this matter.

These shipments include vehicles, household goods, and personal items, which the ministry described as being subject to auction due to unpaid clearance fees.

If you were impacted by this situation, contact Kaniva News: kanivatonganz@gmail.com.

The auction was set this week for 21 June 2025 at Queen Salote Wharf, leaving many in the diaspora feeling betrayed by freight companies they trusted.

The Ministry’s public notice listed items for sale, such as motor vehicles, building supplies, electronics, and used clothing. Many of these belonged to Tongans who had already paid for shipping from New Zealand.

One affected woman told Kaniva News that despite multiple attempts to contact the shipping company after submitting her payments, she received no reply.

“This is a scam. I paid tens of thousands, but now our things are being sold off,” one frustrated family said.

A customer of another company said he was heartbroken to see his goods displayed in footage and photos the Ministry of Customs shared during the auction.

Others demanded government intervention, arguing that Customs should hold freight companies accountable rather than punishing customers.

The Ministry of Customs maintains that the auction follows standard procedures for uncleared goods after prolonged storage.

A statement from the Ministry said: “The public is hereby notified that overdue goods which have been stored at the Customs Controlled Areas will be sold by Public Auction at Queen Salote Wharf at 10 am, Saturday 21st June 2025. Goods for sale include alcoholic beverages, cigarettes, motor vehicles, building materials, household effects, used clothing, computer supplies, and freight of all kinds. Details of the items to be auctioned can be obtained from the Customs head office at Queen Salote Wharf. For more information, please contact telephone 7400650 or 7400660.”

Aotearoa to offer Tongan-Language resources for learner drivers 

Aotearoa, NZ—Learning resources for obtaining a learner driver’s license in Aotearoa-New Zealand will soon be available in lea faka-Tonga (the Tongan language), a move aimed at breaking down barriers for Tongan-speaking communities.  

It follows the New Zealand Ministry for Ethnic Communities’ highlighting that translation is crucial for sharing ideas and information across communities, cultures, and international borders.

“We know that for some communities in Aotearoa New Zealand, English language barriers exist, and there is a reliance on language professionals such as interpreters and translators for information and understanding,” the Ministry said on its website. 

Eight per cent of New Zealand’s population identifies as Pacific, with Tongans numbering 82,000.

“To ensure effective communications, the needs of our diverse communities should be considered from the outset. Investing in translating information up front is likely to have benefits and prevent issues down the track.” 

Jodi Mitchell, the Community Licensing Officer at the New Zealand Transport Agency (NZTA) Waka Kotahi, told PMN News that additional resources to assist learner drivers are being translated.

“We are getting additional resources along those lines that will help them go about the process of obtaining a licence,” Mitchell told PMN. 

“These include how to read our road signs and how to help your learner if you’ve got a child that you’re teaching to drive. 

“They will all be getting translated into Sāmoan, Tongan and Fijian.” 

Waka Kotahi aims to improve road safety outcomes and foster greater accessibility through an inclusive licensing system. 

Mitchell says this is achieved by providing information in multiple languages, thereby ensuring a wider understanding of regulations. 

“We are working to make driver licensing more accessible to everyone who needs a driver’s licence in New Zealand,” she says. “That includes those who don’t have English as their first language. 

The report says a total of NZ$500,000 was allocated under Budget22 funding to make driver licensing resources more accessible for people who speak different languages. 

“We have a list that we’re doing this year, and there’ll be more coming,” Mitchell says. “The purpose is, of course, to help them learn our road rules and how to drive safely on New Zealand roads. 

“We are just looking forward to more people getting their licence and being able to drive on our roads safely, as well as obviously improving their quality of life here in New Zealand, allowing them to become employed, access education, participate in our community and have that independence and wellbeing they deserve to have.” 

Theory test questions for obtaining a driver’s licence are already available in Fijian, Tongan and Sāmoan. 

Hu‘akavameiliku drops complaint against Police Minister amid allegations of budget misuse during Pacific Islands Forum hosting

Former Prime Minister Hu‘akavameiliku appeared not to have pursued his formal complaint against the Police Minister after being confronted with allegations that his administration had mismanaged public funds during the Pacific Islands Forum’s hosting.

Former Prime Minister Hu’akavameiliku (L) and Minister of Police Piveni Piukala

The lawmakers had been arguing about the new budget’s deficit of $29.1 million, with the Minister of Finance saying he decided to make the deficit to help the private sector.  

It follows with questions from the former Minister of Infrastructure, Sevenitini Toumo‘ua, for the Minister of Finance, Dr Eke, who is also the Prime Minister, to clarify the legality of the deficit.  

Hu‘akavameiliku and the Minister of Police, Piveni Piukala, joined the dialogues, with Piukala supporting the Eke’s stance on the deficit, while Hu‘akavameiliku and Toumo‘ua disagreed.

The debate took a sharp turn when Hu‘akavameiliku cited a $9 million budget allocation—$3 million each for Agriculture, Fisheries, and Tourism—claiming these funds had been reduced to zero to enable lending. It remained unclear whether he was referring to the new budget or the previous one during his tenure.

However, Piukala replied that Eke’s approach with the $29.1 million budget was intended to be loaned out. 

He then made the startling allegation that Hu‘akavameiliku’s approach differed because he and his government misused the budget. 

The Tongan word Piukala used was “tili,” referring to the practice of freely distributing goods by allowing people to take as much as they can, as quickly as possible, ensuring each person gets the largest possible share. 

He said in Tongan: “Ko e approach ko ē na‘a nau faí ‘e Sea ko e tili ia, ko e approach ko ē na’a nau faí na’a nau tili ai nautolu.”  

Hu‘akavameiliku promptly notified the Speaker of his intention to file a complaint against Piukala for allegedly defaming fellow MPs.

He confirmed with Piukala whether he was accusing them of misappropriating the funds. 

“Is that what you were saying?” he asked Piukala.    

Piukala did not reply to Hu’akavameiliku. 

He instead claimed the Hu’akavameiliku used the funds he was referring to for the Forum hosting.

Hu’akavemeiliku countered Piukala by saying that the recent Pacific Finance Ministers meeting, which the government hosted, did not have a budget. 

The Speaker directed the MPs to return to the agenda, but no update was provided on whether the Police Minister’s allegation was being pursued.

Police hunt for suspect after assault at Pakuranga Night Market

Auckland, NZ – Two people are in critical condition after a violent attack at the Auckland Night Market in Pakuranga, with police launching a manhunt for the fleeing offender.

Emergency services were called to Aylesbury Street around 6.45pm.

Inspector Danny Meade said police were “currently following lines of enquiry to locate the alleged offender”.

“Initial enquiries suggest this is an isolated incident and there is not believed to be any further risk to the public.

“There will be a visible Police presence in the area throughout this evening as enquiries continue.”

A Hato Hone St John spokesman confirmed crews had been called to the Pakuranga Night Markets.

They responded with two rapid response vehicles, three ambulances and an operations manager.

Locals can expect to see an increased Police presence today as we work to gather further information about what happened.

The two injured people have undergone surgery and are in a stable condition at hospital.

Police continue to follow positive lines of enquiry to locate the alleged offender.

If anyone has any information that can further assist the investigation please call Police on 105 and refer to file number: 250621/0744.

Deported father gets suspended sentence for firing shotgun at noisy youths in Tonga

A Tongan man had been given a suspended sentence after pleading guilty to discharging a firearm with intent to intimidate.

The incident occurred on 18 September 2024, when Tu’ipulotu Palu, intoxicated and frustrated by a group of noisy youths, fired a shotgun in their direction.

The court heard that Palu had been asleep at his home when he was disturbed by youths who were causing a disturbance near a nearby Chinese store.

Lord Chief Justice Bishop acknowledged that this was not the first time the accused had been disrupted by such behaviour.

Reacting angrily, Palu emerged from his property holding a 12-gauge shotgun.

He pointed the weapon at the group, shouting that he would shoot them and “go to prison with the gun.”

While some of the youths fled, Palu chased them and discharged the firearm.

Police later found him intoxicated, with the shotgun placed on a chair near his doorstep.

A pre-sentence report revealed that Palu had initially migrated to New Zealand but was deported in 2005.

He later married, had five children, and is now separated, with sole custody of his youngest child.

The report stated that he was deeply remorseful for his actions, which the judge accepted.

In sentencing, Judge Bishop noted Tu’ipulotu’s intoxication at the time—having consumed three to four beers—as a contributing factor.

Considering his remorse, lack of prior violent offences, and family responsibilities, the court handed him a suspended sentence with strict conditions, including alcohol counselling and community service.

The judge warned Palu that any further offending would result in immediate imprisonment.

U.S. strikes Iranian nuclear sites in dangerous escalation with Tehran

The US gave Israel a heads-up before striking Iran’s nuclear sites overnight.

“We have completed our very successful attack on the three Nuclear sites in Iran, including Fordow, Natanz, and Esfahan,” Mr. Trump wrote on Truth Social. “All planes are now outside of Iran air space. A full payload of BOMBS was dropped on the primary site, Fordow. All planes are safely on their way home.”

Earlier, Iran launched dozens of drones towards Israel.

Earlier in Istanbul, where he was meeting with Turkey’s president, Iran’s foreign minister warned that U.S. involvement in the Israel-Iran conflict would be ‘very, very dangerous.

The strikes represent a high-risk gamble for both the U.S. and Mr. Trump personally. Iran has vowed retaliation against any nation joining Israel’s assault, while Trump – who won the White House by promising to avoid costly foreign conflicts – has long mocked the value of American interventionism.

It follows earlier reports that the United States deployed advanced B-2 stealth bombers to an undisclosed location as tensions with Iran continue to escalate.

The move, seen as a strategic warning, comes amid discussions by former President Donald Trump about potential responses to the simmering conflict, fueling speculation over possible U.S. military action in the region. Defense officials, however, stress that no orders have been issued to carry out operations against Iran using the stealth aircraft.

The reports follow overnight exchanges of fire between Israel and Iran, after Israel claimed strikes on a ‘weapons depot’ and ‘military infrastructure.

Meanwhile, Ayatollah Ali Khamenei has prepared for the worst—appointing both military successors in case of Israeli strikes and three senior clerics to take his place if he is killed.

The civilian death toll from Israel’s attacks on Iran has risen to at least 430, Iran’s Deputy Health Minister Ali Jafarian announced during a press briefing in Tehran on Saturday.

Earlier that day, Iran’s state broadcaster IRIB reported at least 3,056 Iranians had been wounded since the conflict began, citing figures from the health ministry.

In Israel, 24 civilians have been killed by Iranian missile attacks, according to local authorities, in the worst conflict between the longtime enemies.

As of Saturday (local time), the nuclear-capable B-2 Spirits were tracked flying over the Pacific, with analysts suggesting they may be en route to Andersen Air Force Base in Guam—a key staging ground for U.S. power projection in the Indo-Pacific and Middle East. The deployment underscores Washington’s readiness to protect its interests and allies amid heightened geopolitical uncertainty.

US bans African nation listed with Tonga as PM Eke raises ‘serious alarm’ over travel threat 

A U.S. training camp for Senegal’s women’s basketball team has been cancelled after several players were denied visas, prompting the West African nation’s prime minister to cancel the program. 

Prime Minister Dr ‘Aisake Eke

Senegal was listed alongside Tonga as a country potentially facing U.S. travel restrictions.

It follows a memo, which was signed by Secretary of State Marco Rubio and recently sent to U.S. diplomats who work with the countries, said the governments of listed nations were being given 60 days to meet new benchmarks and requirements established by the State Department.  

It gave them until 8am on Wednesday last week to submit an initial action plan addressing the requirements.

The memo, according to the Washington Post, identified varied benchmarks that, in the administration’s estimation, these countries were failing to meet. Some countries had “no competent or cooperative central government authority to produce reliable identity documents or other civil documents,” or they suffered from “widespread government fraud.” Others had large numbers of citizens who overstayed their visas in the United States, the memo said. 

The Senegalese Prime Minister Ousmane Sonko said this week that his country cancelled a planned training program for the nation’s women’s basketball team in the U.S. after several team members’ visas were denied, according to an Associated Press report.  

The Senegalese basketball team had planned to train in the US for 10 days to warm up for the 2025 Women’s AfroBasket tournament in Ivory Coast next month, the BBC reported.

But the visa applications for five players and seven officials were not approved, according to a statement from the federation.

This prompted an angry response from the prime minister.

“Informed of the refusal of issuing visas to several members of the Senegal women’s national basketball team, I have instructed the Ministry of Sports to simply cancel the ten-day preparatory training initially planned in the United States of America,” Sonko said on Thursday in a statement shared to social media, according to the BBC.

It is unclear whether Senegal’s ban resulted from providing a response unacceptable to the Trump administration or from failing to meet the two deadline periods for compliance.

A State Department official declined to comment on the situation’s specifics, saying “visa records are confidential under U.S. law; therefore, we cannot comment on individual cases.” 

Tonga Alarms Over Ban

The recent development by the US follows Tonga Prime Minister Aisake Eke’s statement on Friday that the government is “seriously alarmed” after receiving the ban notification from the US. 

Eke stated that the Foreign Ministry is coordinating with the U.S. Consulate in Nuku’alofa to draft a response. The public will be updated once it is ready.

While U.S. media cited deadlines, Eke noted that no official deadline was given for Tonga’s reply.

In reporting the Tonga and the 35 other countries on the ban list Associated Press quoted State Department spokeswoman Tammy Bruce, who declined to comment on the specifics in the cable, which was first reported by The Washington Post.

She confirmed that the administration wanted nations to improve their own vetting processes for passport holders, accept their nationals deported from the U.S. and take other steps to ensure their citizens are not a threat to the U.S.

“We’re looking at providing a period of time, (where if countries) don’t get to that point where we can trust them and they’ve got to change the system, update it, do whatever they need to do to convince us that we can trust the process and the information they have,” she said.

The 36 countries identified in the new cable are: Angola, Antigua and Barbuda, Benin, Bhutan, Burkina Faso, Cambodia, Cameroon, Cape Verde, the Democratic Republic of Congo, Djibouti, Dominica, Ethiopia, Egypt, Gabon, Gambia, Ghana, Ivory Coast, Kyrgyzstan, Liberia, Malawi, Mauritania, Niger, Nigeria, St. Kitts and Nevis, St. Lucia, Sao Tome and Principe, Senegal, South Sudan, Syria, Tanzania, Tonga, Tuvalu, Uganda, Vanuatu, Zambia and Zimbabwe.

Foreign buyers bid for Lulutai as rival governments spar over who managed the airline better

The Lulutai Airlines dispute escalates as lawmakers contrast the former and current PMs’ management of the national carrier.

It follows the Eke government’s announcement that the domestic airline has been restored to full operations after its previous financial and operational troubles.

PM Eke opted against imposing additional taxpayer burdens, excluding both airline funding and further loans from the current budget

After ousting Huʻakavameiliku in December 2024, the Eke government quickly shifted to ending direct state control of the airline and limiting itself to regulatory functions. It has now put Lulutai shares up for sale, with foreign companies already bidding.

It was part of a review policy the Eke government announced during their campaign: they would review all government ministries and entities, with transparency at the core.  

Under this policy, the government subsequently conducted weekly press briefings to disseminate critical information to the public via media channels, while permitting journalists to pose questions without restriction. 

During his restructuring efforts, Piveni Piukala, Minister of Public Enterprises, likened the airline’s dire state and the government’s early restoration attempts to “a bandaged injury that still bleeds.” 

The restoration was completed when the airline’s situation became so critical that only the new Twin Otter, the only operational aircraft in its three-plane fleet, was still in service. Meanwhile, just a year after its controversial purchase, it incurred hundreds of thousands of dollars in maintenance costs.

Piukala stated that before the airline’s restructuring, the former administration provided a $50 million capital injection into the government-sponsored organisation.

Prime Minister Eke recently announced the new development in the Parliament, describing it as thrilling (“fakafiefia”).  

Controversial Past Management 

Under Hu’akavameiliku’s government, millions were transferred from state coffers to fund the airline without proper parliamentary oversight.

His immediate appointment of his disgraced political ally Poasi Tei, dismissed from Parliament following an electoral bribery conviction, as CEO of Lulutai, shocked the public and stigmatised his administration’s management of the airline.

One of the most controversial decisions involved purchasing the new $14 million Twin Otter aircraft, partially financed by a $4.5 million loan from the Civil Servants’ Retirement Fund Board. Given the lack of transparency, this move drew significant public criticism, with critics saying the plane was too expensive for its actual price.  

The Parliament only became aware of the purchase after Kaniva News reported on the Hu’akavameiliku’s plan to make the purchase.  

Facing Opposition questions in Parliament, Huʻakavameiliku claimed the government funding for the Lulutai appeared in the Budget, but critics countered it wasn’t clearly itemised. Meanwhile, the airline’s ownership remained unverified, while Huʻakavameiliku said Treasury held the share certificate.

Auditor General Sefita Tangi confirmed to Kaniva News that, at the time, no such document existed in official records. 

Budget Debate Reignites Controversy

As lawmakers debated the country’s budget 2025 / 2026, which was approved last week before the new fiscal year begins on July 1, the Lulutai Airlines controversy resurfaced, sparking a heated exchange between Huʻakavameiliku and Deputy Prime Minister Taniela Fusimālohi. 

Huʻakavameiliku was questioning the Minister of Finance—who is also the Prime Minister—whether funds had been allocated in the budget for Lulutai Airlines. He further inquired if any loans were expected for the company, to which Eke replied, ‘No.’ 

Huʻakavameiliku appeared to be linking his management of Lulutai to the perceived success of Eke’s restructuring process. He claimed that the Eke camp did not believe the government should fund the Lulutai, but they were doing the same thing now. 

He said in Tongan : “‘E ‘i ai e taimi na’a mou ta’etui ai ki he pa’anga ‘oku fiema’u ke fakalele’akí pea ko eni te tau toe sio pe he te tau toe a’u pe ki he me’a tatau pe, mālō Sea.” 

In response, Fusimālohi highlighted the differences in how the governments of Hu’akavameiliku and Eke managed Lulutai Airlines, stressing the Eke restructuring to limit government involvement to a purely regulatory role.

Fusimālohi said in Tongan: “Sea ko e, ko e me’a kehe ia ‘oku talanoa ia ki ai ko e kuohilí ia. Ko e ‘ahó ni ko au ko e regulator au ‘o e airline ko ení.   

“Kapau ne tō ki ha fakatu’utāmaki ko u ta’ofi.” 

Investors Sought Worldwide 

The Lulutai is inviting qualified investors to submit Expressions of Interest (EOI) to acquire shares in the company.

It said this opportunity is open to domestic and international investors with the financial capability, industry experience, and strategic vision to contribute to the airline’s long-term growth and success. 

Reports indicated that New Zealand’s Sunair Aviation Ltd was among the potential buyers that submitted expressions of interest in purchasing Lulutai shares. 

The deadline has been set for June 30.