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Minister denies Lord Sevele could benefit from his appointment to Reserve Bank board

By
Kalino Latu
-

Minister of Finance Tatafu Moeaki has denied that Lord Sevele could seek benefits to businesses to which he is connected through his appointment to the Reserve Bank of Tonga.

Minister of Finance Tatafu Moeaki

As Kaniva News reported earlier, Lord Sevele has ties to Rowena Financial Services, from which he resigned as a director in 2020.

His wife is currently listed as the company director.

Kaniva asked the Minister whether it was a good idea to bring Sevele onto the board to participate in making decision that could affect exchange rates and policies and laws related to matters that could benefit him personally.

“This is not true,” Hon. Moeaki replied.

“A copy of Rowena Financial Services company registration was sent to NRPT and it was clear Sevele’s directorship was ceased in 2020.”

The Minister said everything was fulfilled through legal advice, including independent legal advice for NRBT. The board was told if there was any evidence to counter it should be taken to him, but nothing was provided.

He said it was just an allegation and the government’s power would be better used to independently operate the board.

Kaniva also asked Hon. Moeaki whether there had been any breach of the guidelines on conflict of interest laid down in items 88 to 96 of the Cabinet Manuals.

Rowena Financial Services is registered with the Tonga Business Registry. The director is Lord Sevele’s wife Ainise and the shareholder is their daughter Marianne Rowena Tohi.

The National Reserve Bank of Tonga Act says directors should not vote on any issue related to “any agricultural, commercial, financial, industrial, professional or other interests with which they or any person with whom they have personal, family, business or financial relations may at any time be directly or indirectly connected.”

The Finance Minister said the government had taken legal advice from the Attorney General and no law was beached.

“The important thing for the NRBT board is the need for better operation and financial activities,” he said.

Reiterating his previous comments, the Minister said times were difficult and businesses, agriculture and fisheries were all affected. Obtaining loans was extremely difficult.

“There is a need for experienced businesspeople to facilitate bank services including imports and the strength of our currency,” he said.

Hon. Moeaki denied reports that he had been questioned by the Reserve Bank’s board about his insistence on appointing Lord Sevele because of his links to Rowena Financial services.

Reliable sources told Kaniva board members had queried the appointment.

They said Moeaki was provided with a legal opinion last year to justify their querying the appointment.

This was a legal opinion given to the former Tu’i’onetoa government to cancel its proposal to appoint Dr ‘Aisake Eke as director of the NRBT board although his name was already removed from the company’s directorship. The board advised the Tu’i’onetoa government with the legal opinion that Dr ‘Aisake Eke had a registered business, which was contrary to the NRBT law. The government and the NRBT agreed on the opinion and Dr Eke was not appointed.

Kaniva’s sources said Dr Eke’s case was the same as Lord Sevele’s and they were baffled by the Minister’s insistence on his appointment.

Teens could fail basic literacy, numeracy NCEA standards – report

By
Kaniva Staff
-

By RNZ.co.nz and is republished with permission.

Initial testing indicates some teens will fail compulsory NCEA standards because they don’t use capital letters and full stops and don’t know how many minutes are in an hour.

No caption

Photo: RNZ / Richard Tindiller

The new standards, one for numeracy and two for literacy, become a must-pass co-requisite for the certificate of achievement next year.

But assessment reports show that a test run last year found many teenagers cannot write without intrusive spelling, punctuation and grammar errors, and cannot correct a text to ensure tenses, verbs and pronouns are right.

It also found measurement and geometry are areas of weakness, and markers were worried by the number of students who did not know there were 60 minutes in an hour.

The standards are being introduced because a study revealed 40 percent of students who get NCEA level 2 are not functionally literate or numerate.

Secondary Principals’ Association president Vaughan Couillault said the mistakes were a worry, but could be explained by the timing of the test last year and who sat it.

“It’s probably a case of was the sample size in the trial indicative of the population, what time in terms of lockdowns and school disruptions was it taken – a number of factors that could have contributed to those little eyebrow-raising bits of feedback,” he said.

Couillault said there would be a lot riding on a wider trial run that would involve more schools and students, to be held in June.

“If it’s a co-requisite, as it is, and people perform poorly in it, then that is going to be problematic.

“So it is something that particularly at the secondary level that we need to pay acute attention to,” he said.

Education academic Michael Johnston is a senior fellow at the New Zealand Initiative and worked on the study that first identified teens’ poor literacy and numeracy.

He said the standards looked well designed to prove that students could read, write and do maths well enough to function in society.

“Looking at the numeracy assessment I can see lots of questions about reading maps, about calculating prices on the basis of weight and things like that. Those all look very valid skills to be testing in a numeracy assessment,” Dr Johnston said.

“Likewise the reading assessment and the writing assessment look to be assessing the kinds of things that people would need to be able to do in everyday life.”

He said it would be interesting to see how many students passed the tests given New Zealand’s declining results in major international tests.

Association of Teachers of English vice president Pip Tinning said teachers were familiar with the sort of errors the marking reports highlighted.

“Those comments have come up historically in a number of reports with a lot of different writing assessments, so they’re not super new. I’ve been teaching for nearly 25 years, interestingly I’m not seeing it personally as much as I used to,” she said.

Tinning said both primary and secondary teachers tried to teach children to write well, avoiding grammatical errors and use punctuation correctly.

“It’s something that’s been looked at forever. So it is something we do consistently look at. We are trialling new things. I’m not sure whether I would be confident to say we are doing it better, but we are constantly looking to improve how we do teach those areas,” she said.

Tinning said the trials in June and September this year would give teachers a better idea of how many students would pass the test.

She said poor literacy reflected a society that did not value reading and writing as worthwhile activities.

“If you sit and read or you sit and write, we look at it now as a self-indulgence and it needs to be something that is part of who we are and what we do.”

Fiji’s general election contest expected to heat up

By
Kaniva Staff
-

By RNZ.co.nz and is republished with permission.

Campaigning officially got underway in Fiji on Tuesday but no official date has been announced for the general election.Electoral Commission Chairperson in Fiji Mukesh Nand

Electoral Commission Chairperson in Fiji Mukesh Nand Photo: Electoral Commission Fiji

Electoral Commission chairperson Mukesh Nand announced the start of campaigning and explained that under Fijian law the start of the campaign period was one month before the earliest date that the election writ could be issued by President Ratu Wiliame Katonivere, which is May 26.

Nand said he would also launch the Candidates Handbook that explains various campaign rules in detail.

In a statement, Nand urged political parties to go through the Handbook and the Electoral Act and familiarise themselves with the rules.

“It is of utmost importance that political parties do not mislead voters or engage in unlawful activities such as vote-buying and bribery in order to manipulate or win support,” Nand said.

President of Fiji Ratu Williame Katonavere

President of Fiji Ratu Williame Katonavere Photo: Twitter

Meanwhile the director of the Lowy Institute’s Pacific Islands programme Jonathan Pryke said the political landscape in Fiji this year was very different from the general election five years ago.

Pryke said the battering Fiji’s tourism-reliant economy had taken during the pandemic had severely impacted voters and deep divisions among opposition groupings would make it very difficult to accurately predict election results.

“It’s going to be hotly contested. It’s going to be very interesting to see. Let’s see how it plays out. I think there will be a lot of personality politics thrown into the middle, but I hope that there is a lot of focus as well on these big policy issues that are going to define Fiji’s economic and development trajectory for the next decade,” he said.

The only detail about the length of the campaign period is that it must end 48 hours prior to the date when the general election is announced.

Jonathan Pryke, Director of the Pacific Islands Program at the Lowy Institute.

Jonathan Pryke, Director of the Pacific Islands Program at the Lowy Institute. Photo: Supplied

Pryke said it is very different from other jurisdictions in the Pacific region including Australia and New Zealand.

“You know when you call the start of an election campaign you also will typically set the date for the election itself. So you know in Australia we are in the middle of an eight-week election campaign right now which will lead to a late May election. Whereas in Fiji we still don’t know the date. It could be as late as January or early as June,” Pryke said.

Air NZ moving head office to Auckland Airport to cut costs

By
Kaniva Staff
-

By RNZ.co.nz and is republished with permission.

Air New Zealand will relocate its head office to Auckland Airport, leaving the central city.The Air New Zealand head office will be relocated to Auckland Airport by 2024.

The Air New Zealand head office will be relocated to Auckland Airport by 2024. Photo: Air New Zealand

The company has announced it will refurbish its airport campus and build a new 10,000sq/m hangar at the site.

The airline said the move will centralise its operation, future-proof its infrastructure and reduce property costs.

The majority of the company’s staff are based in Auckland and those based at its existing Fanshawe Street head office are expected to move to the airport in 2024.

Air New Zealand chief executive Greg Foran said it has spent the past two years looking at how it can set itself up for success.

“We know we work best when we work together and we have plenty of under-utilised space at the airport campus to make that happen.

“We’ll be creating an environment where the people who plan our future work alongside those who operate our aircraft and work with our customers every day.

“Globally, this way of working is delivering exceptional results for customers and shareholders, and this is the right time to get ready for a move as we prepare for the global recovery in aviation.”

Foran said the company has more space than it needed in the Auckland central city and was already paying for a precinct at the airport that had more than enough room.

“With building costs increasing and our CBD leases coming to an end, this is the time to get started on the work to bring our people together,” he said.

Moving the city office to the airport would cut costs by 20 percent over 15 years, the airline said.Air New Zealand's operations centre.

Air New Zealand’s operations centre. Photo: Air New Zealand

It said the office’s lease will end in 2027 and it’s exploring sub-lease options.

The new engineering facility – called Hangar 4 – was first announced in 2019 and will be the largest single span timber arch aircraft hangar in the Southern Hemisphere, Air New Zealand said.

It would also be sustainable, with a six-star green rating.

“We’re confident that our long-haul operation will return so investing now in a new hangar that will be large enough to house a 787 and two A320s side-by-side in one space makes complete sense.

“Our existing hangars were built in the 1960s and 1980s and, while they have served us well, our fleet has changed over the decades. We now have a need for a more modern, innovative structure that takes energy use and other sustainability factors into account,” Foran said.

Construction of the hangar will begin this year.

Family of Tongan officer who fell in Solomons hopes his remains will come home one day

By
Kaniva Staff
-

The family of Henelē Taliai, a Tongan officer killed in the Solomon islands during the Second World War hope that one day his remains will be sent back to Tonga.

Lt Henelē Taliai

But they feel the government has forgotten him.

“Today my Dad remembers his older brother Lt Henele Taliai, who was killed in action in the Solomon Islands,” his nephew ‘Ikani Taliai  wrote on Anzac Day.

“The Army Camp in Tonga, Taliai Camp, was named after him by Her Majesty Queen Salote.

“He was killed alongside New Zealand Lieutenant Ben Masefield and the song “Taio” was written in remembrance of the two of them by Siotame Mataele, a soldier and friend to them both.”

‘Ikani said Masefield’s remains had  been repatriated to New Zealand, but his uncle’s remains were still in the Solomon Islands.

“One day we will get him back home.”

In 2018 the then Prime Minister, ‘Akilisi Pōhiva revealed that Lt Taliai’s younger brother, the Rev. Siupeli Taliai, had written to Lord Ma’afu, the then Minister responsible for His Majesty’s Armed Forces, asking the Tongan Government to repatriate the soldier’s remains.

Hon. Pōhiva said at the time the government would discuss the request as a matter of urgency.

Henelē served with the First Commando Fiji Guerrillas in the Solomon Islands during the campaign to drive the Japanese out of South Georgia.

Lieutenant Taliai was killed by machine gun fire on July 12, 1943 when a commando patrol, edging along the beach towards Munda, ran into a heavy concentration of Japanese troops.

In her thesis on the Tongan military forces, historian Amanda Lee said he was regarded as a loved and admired young officer by the troops he commanded.

The commando patrols, made up of Tongans, Samoans and Fijians, were known to the Americans as the South Pacific Scouts. They made a key contribution to the Allied advancement during the campaign, serving as scouts and flanks for the American troops.

The commandos had a reputation for bravery and an adept understanding of the Pacific environment they were fighting in.

As a young man he was a keen rugby player and represented Tonga in test matches against Fiji.

His father and grandfather were both Methodist ministers. He was an outstanding athlete at  Tupou College, where he captained the cricket and rugby teams and was senior prefect.

The official British history of the Islands campaign, Among Those Present, said he was confident the Tongans would give a good account of themselves if ever they got into action.

“We were famous warriors in the old days and were feared all over the South Pacific,” he was quoted as saying.

“We’re a bit out of practice, but we think we can pick it up again.”

Tupou faces second week off the field if he appeals and loses ban after head high tackle

By
Kaniva Staff
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Tongan rugby international Daniel Tupou could be out of the NRL for a fortnight after a neck high tackle on Anzac Day.

Daniel Tupou narrowly avoids being sent off after a high tackle on Mikaele Ravalawa.

The Sydney Rooster’s winger, who is of Tongan descent, tackled St George’s Illawarra winger Mikaele Ravalawa in the 54th minute of the game at the Sydney Cricket Grounds.

Ravalawa was not injured in the incident, but Tupou’s arm hit him in the side of the head after grazing the top of the ball.

Tupou has been suspended for a week by the NRL and has the option to appeal the penalty to the NRL judiciary. However, if he loses, he will face an additional week on the benches.

Tupou, who has represented both Tonga and Australia internationally, was part of the Rooster’s side that defeated St George’s 40-22 in last year’s NRL season.

The Roosters lost 12-14 in last weekend’s clash.

Senior rugby league figures said they were surprised Tupou was not immediately sin-binned after the incident.

Tupou was allowed to stay on the field for his tackle in the 54th minute despite the NRL’s mandating the sin bin for direct contact to the head.

Dragons coach Anthony Griffin told the media that Tupou “would have been jailed for two years during Magic Round last year” for the incident and the NRL’s chief executive, Andrew Abdo, said he was “surprised” Tupou wasn’t sent to the sin-bin.

“From where I was sitting to me it was a sin bin – direct contact to the head,” Abdo said.

“I was very surprised it wasn’t a sin bin, I think it should have been.”

On local Sydney media Triple M’s Mark Geyer said fans expected more consistency in the application of rules.

Reserve Bank board members worried by possible conflict of interest with finance company tied to Lord Sevele

By
Kalino Latu
-

Reliable sources have told Kaniva News that members of the National Reserve Bank of Tonga’s board queried possible conflicts of interest if Lord Sevele was appointed to the country’s most important financial institution.

As Kaniva News has reported over the past few days, Minister for Finance Tatafu Moeaki wrote to the board reassuring them that Lord Sevele would “manage any perceived conflict of interest on his part and any other members of the board.”

It is understood the board had queried the Minister over Lord Sevele’s appointment because Lord Sevele owned Rowena Financial Services.

This company’s services included money transfer and this appears to be a direct conflict of interest with Sevele’s role.

The National Reserve Bank of Tonga Act says:

“No director shall act as a delegate of any agricultural, commercial, financial, industrial, professional or other interest, or receive or accept directions therefrom in respect of duties to be performed under this Act or by virtue of such capacity under any other Act.

“All directors shall fully disclose to the Board . . . .  any agricultural, commercial, financial, industrial, professional or other interests with which they or any person with whom they have personal, family, business or financial relations may at any time be directly or indirectly connected and shall refrain from voting on any matter related thereto which becomes the subject of Board action.”

READ MORE:

Rowena Financial Services is registered with the Tonga Business Registry. The director is Lord Sevele’s wife Ainise and the shareholder is their daughter Marianne Rowena Tohi. The shareholder was changed from Feleti Sevele, who is Lord Sevele, on 22 July 2020.

Several other corporate entities listed on the Business Registry appear to be tied to Lord Sevele either directly or through family directorships and shareholdings. Not all of these appear to be still functioning.

These include Molisi Tonga Ltd, Sevele Education Foundation, Tonga Travel and Tour Ltd and Citywide Tech Tonga Ltd.

Kaniva News  makes no imputations as to the legality of these company’s arrangements.

A leading Tongan figure has expressed concern that apart from a conflict of interest with the Reserve Bank, potential conflicts of interest may also exist with Lord Sevele’s other positions.

Our source suggested that a conflict of interest may arise when a person who is a Lord and an advisor to the king owns a  businesses that could benefit from royal or Privy Council decisions.

Chinese loan

One of the most serious concerns raised about Lord Sevele’s previous actions was his decision to borrow $118 million from China to rebuild Nuku’alofa after the 2006 riots.

The amount borrowed was later criticised as being too much and it was claimed by some economic analysts that the damage to Nuku’allofa could have been rebuilt with for a few million.

When Lord Sevele was questioned about this by the Tonga Broadcasting Commission, he said he thought China would turn the loan into a grant, an idea China rejected despite many requests.

Businesses whose property was destroyed in the riots were allowed to borrow from the loan. It was later reported that some of them refused to pay back the money they owed because they thought that China would one day turn the loan into a grant.

Much of the loan money was used to renew the royal palace in Nuku’alofa, even though it was not affected by the 2006 riots. The Vuna wharf, which was not affected by the riots, was also funded from the loans.

Lord Sevele’s City Assets business previously known as Molisi Tonga also benefitted from the loan, which had not been approved by Parliament.

Lord Sevele was criticised in parliament in 2017 after it was revealed he rejected a demand from the Tongan government to sign a contract to make sure he is obliged to pay back the money he borrowed to rebuild his business after the 2006 riot.

The Minister of Finance was contacted for comment. Lord Sevele ‘O Vailahi could not be reached for comment.

COMMENTARY: Lessons to be learned from New Zealand in Reserve Bank appointment – high standards, transparency and independence a must

By
Kalino Latu
-

COMMENTARY: In his response to our questions about the appointment of Lord Sevele to the board of the National Reserve Bank, the Minister for Finance told us to compare living costs in New Zealand and Tonga as an explanation of why the bank needed the services of experienced people.

Minister of Finance Tatafu Moeaki

We are grateful that Hon. Tatafu Moeaki wants us to learn from New Zealand.

However, we may, respectfully, draw a different conclusion to the one the Minister would like us to make.

Our conclusion is that in New Zealand a recommendation to appoint someone with such a controversial background as Lord Sevele would not be accepted.

If the New Zealand Cabinet did make such a recommendation they would expect to face the consequences of very public questioning.

In New Zealand any appointments to the Reserve Bank are closely scrutinised by the financial press, as happened when criticism was levelled at the bank for the appointment of an economist with what were seen as too strong ties to Australian banks.

We might also expect that the public would want a full accounting for the recommendation.

We do understand that at a time of financial crisis, the Covid-19 epidemic and the potential consequences of Russia’s invasion of the Ukraine, that the government is looking for sound advice from experienced hands.

But is there something else going on?

Former Acting Chairman of NRB Richard Prema

On re-reading Minister Moeaki’s letter to Acting Chair of the National Reserve Bank, Richard Prema, it is clear the Minister was responding to concerns raised by Mr Prema. In paragraph one the Minister said the concerns had been noted, including other representation of the business sector to the board.

Those concerns were not detailed in the letter, but it is quite clear that there was some concern about the board’s directorship and that Cabinet had responded by appointing Lord Sevele and another director.

The fact that the Minister mentioned conflict of interest in the beginning of paragraph two of his letter leads us to suspect this issue has been raised either by the bank or Cabinet.

The Minister said: “The government needed experienced people to help deal with the kingdom’s financial crisis.”

This led us to ask what experiences Lord Sevele ‘O Vailahi has, apart from his academic background in which he held a Doctor of Philosophy in economic geography. Critics have argued that  Sevele should not be regarded as a successful business operator since most, if not all, of businesses he operated have ceased operations. His record while in government as Prime Minister and chairman of a number of boards and committee is open to question.

Is this the kind of experience the Minister of Finance and the Cabinet want to be paid for by taxpayers’ money to control one of the most important financial institutions of the country?  

We also asked Hon. Moeaki whether there was a conflict of interest over his recommendation of Sevele, given that the former Prime Minister was a voter in his constituency and they went to the same church.

READ MORE:

TASANOC proposes compromise to end deadlock over removal of Lord Sevele

Lord Sevele defends his idea to move Attorney General to Privy Council

Tonga Chief Justice rejects Lord Sevele’s judicial review application

Government terminates Lord Sevele’s Pacific Games office

The Minister of Finance responded by saying that this “had nothing to do with his personal relationship with the former Prime Minister”. The Minister also said: “The National Reserve Bank was not a political body”.

The power to appoint the directors to the board lies with the Cabinet. It depends on the Ministers’ favour and who they think might be a suitable person for the posts. It does not go through the Public Service Commission, so directors cannot be screened using the PSC rules and regulations for civil servants.

The Minister was right that the NRB was an independent body and is not political. But unfortunately, the Cabinet, which appoints directors for government boards, is a political body. And given Tonga’s political system in which the Prime Minister lobbies for a majority of the MPs to vote for him in the premiership election, there is a tendency for the PM and other Cabinet members to refrain from vetting the Minister of Finance’s candidate for NRB directors as a reward for his allegiance to the Cabinet.

Also, each minister will in turn, make the same proposal for their candidates to be appointed by the Cabinet to their various boards. Because the Minister of Finance appears to have supported Sevele’s questionable experiences and failed to justify his recommendation with good reasons, the people have rights to criticise the appointment including blaming him for nepotism.

This situation is clearly unacceptable. Appointments, to statutory bodies like the Reserve Bank should be subject to independent scrutiny and subject to stringent criteria. Appointments to public companies can also offer lessons. For instance, the New Zealand Financial Markets Authority recommends that directors “should be selected and appointed using rigorous, formal processes designed to give the board a range of relevant skills and experience.”

The FMA also recommends that chairs of boards should be independent.

To many people there will remain a question as to whether Lord Sevele has the relevant skills and experience.

Who, then, might fulfil these criteria?

Richard Prema, the Acting Chairman could be a good candidate for the Chair of the National Reserve Bank. He has been a successful businessman, coming from an Indo-Fijian family who moved to the kingdom in the 1950s.  They started the Prema and Sons company – of which he is listed as CEO –  which sells a range of good.

With a successful  background in business, why was Prema not simply confirmed in his position as chairman?

Supreme Court rejects claim that Tongatapu No 2 election result was result of bribery

By
Kaniva Staff
-

The Supreme Court had dismissed a petition by former Acting Prime Minister Sēmisi Sika to overturn the results of the election for Tongatapu No 2 in last November’s election.

Dr ‘Uhilamoelangi Fasi and MP Sēmisi Sika

Sika was a Member of the Tongan Parliament from 2010 to 2021. He is currently leader of the Democratic Party of the Friendly Islands.

Sika alleged that ‘Uhilamoelangi Fasi won the election by bribery.

He alleged that on or about  November 16 last year, Dr Fasi gave Siosaia ‘Ahokovi, of Haveluloto, $100; that on November 3, 2021, Dr Fasi indirectly gave groceries to members of the community police at 12 community police posts at Haveluloto; that in the first week of November 2021, Dr Fasi directly or indirectly gave Telusila Pelesikoti TP$300 or paid her electricity bill in the sum of TP$300 and that on October 7 last year Dr Fasi indirectly gave TP$400 to the steward of the Church of Tonga at Haveluloto as a gift towards a fundraising by the church members.

Sika claimed that each instance Dr Fasi did so in order to influence the vote.

In his summary of the case Lord Chief Justice Whitten, presiding, said  that according to the law, anybody who, directly or indirectly, gave money or valuable gifts to persuade an elector to vote or not vote was guilty of bribery.

 Giving money or a valuable gift included giving, lending, agreeing to give or lend, offering, promising or promising to procure or try to procure, any money or valuable gift.

It was not necessary to prove that such actions did in fact produce any effect on the election.

Any money or valuable gift given or offered or agreed to be given within three months of any

election by or on behalf of a candidate, would be considered to have been offered for the purpose of influencing the vote.

Lord Chief Justice Whitten said it had to be assumed that when it framed the law Parliament took into account Tongan customs involving the giving of gifts whether by way of assistance to family members, refreshments or as part of recognized rituals or ceremonies.

The judge said that the quality of the evidence presented by Sika’s witnesses ranged from clear and credible to confused and confusing.

Lord Chief Justice Whitten described Dr Fasi and witness ‘Epele Sekeni as impressive witnesses.

“Throughout their cross-examination, they gave clear, measured and consistent evidence, none of which was damaged in any material respect. Therefore, where the evidence of Mr Sika’s witnesses conflicted with that of Dr Fasi and his witnesses, particularly ‘Epele, I preferred the latter.”

The judge said the first claim failed and that ‘Epele gave Siosaia the TP$100 in appreciation of work being done and help workers buying their lunch, not on behalf of Dr Fasi.

The second claim failed because there was no evidence or suggestion that Dr Fasi gave the groceries himself.

The third claim as withdrawn.

The judge said the fourth claim failed.

“The uncontroverted fact that the money was given ultimately for the benefit of the Tofoa church, within the Tongatapu 7 district, would negate any rational possibility that Dr Fasi had sought to induce the electors of the Tofoa church to vote for him because their vote could not assist  him in being elected as the representative of the Tongatapu 2 electorate,” the judge said.

Minister: No personal link with ex-PM’s appointment; government needs experienced people to deal with financial crisis

By
Kalino Latu
-

Minister of Finance Tatafu Moeaki said today the appointment of Lord Sevele as a director of the National Reserve Bank of Tonga had nothing to do with his personal relationship with the former Prime Minister.

Lord Sevele ‘O Vailahi (L), Minister of Finance Tatafu Moeaki

He said the government needed experienced people to help deal with the kingdom’s financial crisis.

As Kaniva News reported yesterday news of the appointment leaked when a letter to the Reserve Banks’s board of directors recommending the appointment was posted online.

Hon. Moeaki said the appointment had been approved by Cabinet.

He said Lord Sevele would “manage any perceived conflict of interest on his part and any other members of the board.”

We asked the Minister to tell us about the basis for the Cabinet’s  recommendation of  Lord Sevele for the post.

We also asked Hon. Moeaki whether there was a conflict of interest over his recommendation of Sevele, given that the former Prime Minister was a voter in his constituency and they went to the same church.

The Minister said the National Reserve Bank was not a political body.

It was a legally independent body separate from the government.

He said Tonga was facing enormous financial problems and the government had appointed new directors to deal with the problems.

“This is an administrative issue that should have not been leaked to the public, but the facts were in that letter of mine to the National Reserve Bank of Tonga on April 14,” he said.

The task of the directors was to help the government’s social economic recovery process.

The Reserve Bank had to deal with the country’s financial matters, including inflation, the external account, the exchange rate, regulation of the financial institutions stability, the money supply and interest rates. 

He said a comparison of the costs of living in New Zealand to Tonga, the remittance fees to Tonga and the cost of loans made it clear why the appointment of experienced people as directors was necessary.

In response to questions about his personal relationship with the 78-year-old Lord Sevele, the Minister said: “Your other questions were not related to the appointment of the director.

This had nothing to do with the town or church that I came from. I have no comment for your other concerns.”

Kaniva’s article has triggered further attacks on the government from the public.

Many people  have said the issue put the Hu’akavameiliku government in a position like that of the former  Prime Minister Tu‘i‘onetoa who was criticised for his relationship with convicted fraudsters Etuate and Akosita Lavulavu.

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