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China says Pacific debt claims “ridiculous” after Julie Bishop raises concerns

SYDNEY MORNING HERALD / PACNEWS

China’s ambassador has branded “ridiculous” the idea that Beijing is threatening
the sovereignty of small Pacific nations by building infrastructure that saddles them with unsustainable debt.

His comments followed remarks by Foreign Minister Julie Bishop that the Australian government was concerned some Chinese financing arrangements in the Pacific would damage the island nations sovereignty and that Australia would
offer alternatives to Chinese infrastructure development.

Speaking in Canberra, ambassador Cheng Jingye indicated he was not aware of Bishop’s remarks but said the proposition China was creating so-called debt-traps for small nations was “ridiculous”.

“We have a growing economic co-operation with some of the island countries. They are on [an] equal footing and I think it’s mutually beneficial, as has been said by the local people – both the local people and both the government,” he said.

“The fact is there. I hope any comment will be made based on fact, rather than speculation.”

Cheng, who was at Parliament House on Tuesday morning to address an Australia China Business Council event, was trailed by waiting media for much of his way out the building, facing questions on tensions between Australia and China.

Bishop told Fairfax Media Australia on Monday Australia was concerned about the economic viability of small Pacific nations and did not want unsustainable debt burdens imposed on them.

“They are sovereign nations,” she said. “We want to ensure that they retain their sovereignty, that they have sustainable economies and that they are not trapped into unsustainable debt outcomes. The trap can then be a debt-for-equity swap and they have lost their sovereignty.”

She said Australia should take “a very proactive role” in offering Pacific nations alternatives to Chinese projects.

“What we don’t want is for countries to have no other options,” she said.

Sri Lanka last year handed over a large, strategic port to a Chinese company under a debt-for-equity swap after it was unable to meet loan repayments to China.

Cheng said China was “sensitive to any possible debt burden”. And asked whether China was deliberately overburdening countries with debt to ensnare them, Cheng said the proposition was “absurd”.

He also refused to say whether Prime Minister Malcolm Turnbull would be invited to visit China this year. It has been widely expected he would visit, and any slippage of that plan would be seen as a diplomatically bruising development.

Speaking at the same forum, Turnbull insisted the relationship – including strong economic ties – was better than was often shown in political and public debate.

“You’ll see in the media, and sometimes you'll see from politicians – and I know there’s been a bit of negativity expressed by my political opponents in the course of today’s sessions – a lot more negativity presented than is actually
the case.”

“I think there are discussions about bilateral exchanges at different levels. When there is any news, I will let you know.

There are discussions,” he said.

Earlier in a speech to the Australia China Business Council, Cheng said there needed to be “less bias and bigotry” in the relationship between the two countries, though afterwards he refused to say where these qualities lay.

He said there were “some difficulties, obviously”, in the relationship.

Labour foreign affairs spokeswoman Penny Wong told the conference the major parties should avoid fighting over the China relationship. She said there would be differences with China from time to time but “the government should try and not make things worse”.

Papua New Guinea’s deputy Prime Minister and Treasurer, Charles Abel, told the Lowy Institute on Monday night that while Chinese aid and investment was providing opportunities to his country, it was also presenting challenges that Australia needed to help “balance”.

“Whilst we appreciate the interaction with China, there remains some concerns in terms of the way they do conduct business,” he said.

Kaniva Tonga News has a republication arrangement with PACNEWS

Tonga hosts UN regional meeting for Pacific small islands

Officials from small island developing States in the Pacific region are meeting in the Tongan capital Nuku’alofa to review progress in implementing the SAMOA Pathway – the dedicated programme of action for small island developing States (SIDS).

In declaring the meeting open this morning, the Prime Minister of Tonga, Hon. Samuela ‘Akilisi Pōhiva, said “We are gathered here in Tonga at a critical juncture in terms of our common interests in the sustainable development of our islands.  As we approach the 5th year since the world came together in Samoa in 2014 and endorsed the SAMOA Pathway, it is critical that we recall the mandate of the Conference . . . especially in light of related international and regional processes that have come to be, after the fact.”

“This regional meeting is highly important for small island developing States in the Pacific as it helps to chart the future direction of sustainable development for island nations in the region. Tonga has therefore played a critical role in this process.  I am certain that the outcomes will add great value to our collective efforts in supporting the sustainable development aspirations of Small Island Developing States in the Pacific and beyond,” said Ms. Fekitamoeloa Katoa ‘Utoikamanu, High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States.

The three-day meeting from 19-21 June is an occasion to discuss achievements, challenges and gaps in the first five years of implementing the SAMOA Pathway and to agree on an outcome for accelerating implementation in the region. Substantive discussions are expected to take place in areas including: social inclusion, environment, equitable economic growth as well as addressing gaps in implementation through partnerships.  Addressing linkages between the implementation of the SAMOA Pathway and the wider 2030 Agenda for Sustainable Development and Sustainable Development Goals are also on the meeting agenda.

On the margins of the regional meeting, a dedicated partnerships dialogue will also be held for various stakeholders from governments, private sector and civil society to assess the status of SIDS-specific partnerships which were launched at the 2014 SIDS Conference in Samoa.

The Midterm Review of the SAMOA Pathway will take place in 2019 to review all major commitments of the last five years through a SIDS lens – from the 2030 Agenda for Sustainable Development and the Sustainable Development Goals, to the Sendai Framework for Disaster Risk Reduction, the Paris Climate Change Agreement, the New Urban Agenda, and the outcomes of the 2017 Ocean Conference – and how living up to these commitments will help accelerate the implementation of the SAMOA Pathway.

The regional meeting is being hosted by the Government of the Kingdom of Tonga and co-organised by the United Nations Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States and the United Nations Department of Economic and Social Affairs with support from the United Nations Economic and Social Commission for Asia and the Pacific and the United Nations and the United Nations Development Programme.

Cigarettes Have to Be Labeled ‘Deadly’ and ‘Addictive’ Now

time.com

A new rule requiring tobacco companies to describe their products as “deadly” and “addictive” on their websites went into effect Monday — and more regulations are coming.

Tobacco companies including Altria, R.J. Reynolds Tobacco, Lorillard, and Philip Morris USA were ordered to issue “corrective statements” online by June 18 following a federal court ruling last month. The statements have to describe five topics including the deadly health effects of smoking, the addictiveness of nicotine and the lack of any significant health benefits from smoking low-tar cigarettes.

They also have to explain the serious health risks linked to exposure to secondhand smoke, as well as tobacco companies’ documented efforts to change the design and chemical blend of cigarettes in order to increase the amount of nicotine that users inhale — making them more addictive.

Those companies also have to add similar warnings on cigarette packages by November 21.

The ordered “corrective statements” follow U.S. District Judge Gladys Kessler’s watershed 2006 ruling, which stated tobacco companies had “violated civil racketeering laws and lied to the American public for decades about the health effects of smoking and their marketing to kids.”

Vava‘u pastor reportedly drowns in Ha’apai

A pastor from Matamaka, Vava’u has reportedly drowned off the coast of Tongoleleka, Ha’apai.

Tekitau Fifita was understood to have been diving at the reefs in the coastal areas when the tragedy happened.

The 38-year-old was diving with a brother on Friday June 15 before he went missing.

His body was recovered from the sea at Holopeka at around 6:00pm the following day.

An inquest report confirmed the cause of Fifita’s death was drowning.

Fifita was the church superintendent of the Assemblies of God in Ha’apai.

His body is expected to be returned to Matamaka.

Hawkes bay community sends disaster relief supply to Tonga

A large shipping container filled with essential disaster-relief supplies has arrived in the small Pacific Island country of Tonga, still struggling to restore normality after Cyclone Gita.

The Hastings District Council approved a grant of $10,000 on March 22, to assist the Tongan Hawke’s Bay Community Governance Committee with the cost of shipping supplies to the victims of the cyclone.

The 40ft container filled with just over $10,000 worth of food, clothing, water and hygiene supplies arrived in Tonga on May 22, 2018 and was last week unpacked and distributed throughout the community.

Tonga was ravaged by the category four storm on 12 February 2018 with winds of up to 278 kilometres an hour. The storm ripped roofs off homes, caused widespread flooding, electricity outages and water shortages.

Loami Tuakalau from the Tongan Hawke’s Bay Community Governance Committee says the effects of Cyclone Gita continue to cause heartache for the people in his home country. “On a scale of zero to 10, with 10 being life back to normal, Tonga is sitting at about two. We all have someone who is still struggling back at home because of the cyclone.”

Mr Tuakalau says when they put the call out to the Tongan community for donations, the response was quite amazing. “People arrived with food, clothing and emergency supplies all bought from local Hawke’s Bay stores. Many of the local workers under the Recognised Seasonal Employer (RSE) scheme also gave items for their families back in Tonga.”

Hastings Mayor Sandra Hazlehurst says the council’s decision to help send disaster relief aid to Tonga was an easy one. “Hastings has a significant Tongan community, many of whom have family and friends in Tonga who needed help with basic supplies to get them through the recovery period. Naturally, they wanted to help their cyclone-stricken loved ones in their homeland.”

Mrs Hazlehurst says Council has donated money to disaster funds in neighbouring countries in the past. “We have given two donations of $10,000 to the New Zealand Red Cross for the Samoan Earthquake and Tsunami Appeal, and to the New Zealand Red Cross for the Victorian bushfires relief fund, both in 2009.”

Loami Taukalau says on behalf of the Tongan community, he is so thankful for the Council and the wider community for their generosity. “This shows the combination of love and concern for the desperate need of Tonga which was heard and felt throughout Hawke’s Bay”.

Leaked e-mails appear to show fear lawyer’s unpaid debt could affect Tongasat case

Leaked emails appeared to show Public Service Association (PSA) General Secretary Mele ‘Amanaki feared that an unpaid debt to a local lawyer could affect a court case involving  Prime Minister ‘Akilisi Pōhiva in Nuku’alofa.

Hon Pōhiva and the PSA are plaintiffs in a court battle against Princess Pilolevu’s Tongasat company which began in Nuku’alofa today.

As Kaniva News reported last night, the court case stemmed from a dispute over a payment of US$25,450,000 made by a former Tongan government to Princess Pilolevu Tuita and her Tongasat Satellite company.

The defendants were Tongasat and the government of Tonga.

The plaintiffs were being represented by New Zealand lawyer Dr Rodney Harrison.

Hon Pōhiva and the PSA argued that the payment to or for Tongasat was unlawful within the meaning of the Public Finance Management Act.

The plaintiffs owed TP$7,025.55 to lawyer Laki Niu as legal fees.

‘Amanaki claimed they could not pay Niu’s fees and that funding they raised from the public in 2014 to help pay the legal fees had been exhausted.

There had been a call for ‘Amanaki to provide an audited financial statement of the money which was understood to have been deposited under the National Solitary Fund trust.

The fund, which was believed to be more than TP$20,000 was raised by Kōmiti Ma‘a e Kakai and was led by ‘Amanaki and Hon Pōhiva.

‘Amanaki has apologised to Lawyer Niu for what she had described as their “shortfall”, according to an e-mail seen by Kaniva News.

‘Amanaki was contacted for comment.

‘Amanaki has asked Hon Pōhiva’s daughter Teisa to ask Hon Pōhiva to discuss the matter with Dr Harrison when he arrived in Tonga last week.

“Please kindly let Ákilisi know of the following regarding Lakí Niu’s legal fees of $7,025.55 to be paid as per attached invoice,” ‘Amanaki told Teisa in an email

She said Ófa Pouono was Dr Harrison’s local agent for their legal case CV48 (PSA & Ákilisi) and also CV68 (Keleá, Mateni, Lautala & Staff and PSA – this is when Mateni published a letter from the Ministry of Revenue on Tonga’s tax arrears.

“Ófa advised in early 2015 that he was migrating overseas, so Mateni requested the services of Laki Niu and Rodney was advised of the changes of the local agent.

“Around October 2015 the Chief Justice had ruled that there is a case for CV48 (which the hearing will start next Monday) and for Gov’t & Tongasat pay for our legal fees (for CV48).

“Subsequently, Tongasat withdrew its charges against CV68 (Keleá & PSA).” ‘Amanaki said.

“I had requested to Rodney to include Laki Niu’s fees in his negotiations with Tongasat & Government for CV48.  I had also had requested to Rodney as per understanding with Ákilisi & Mateni to ask Rodney to also include our local expenses paid from the National Solidarity Fund in his negotiations to be reimbursed.

“Somehow during the course of Rodney’s negotiations something had gone wrong.  i.e. he had meant in his submissions and agreement with Gov’t & Tongasat’s counsels that his fee was $23,000+ each for Gov’t & Tongasat = $46,000.  Unfortunately, the Chief Justice minutes read that the total fee was only $23,000+ instead of $46,000.  This negotiation took place in 2016 and was paid only around May 2017.  The amount was paid to PSA account and we had transferred the funds to Rodney accordingly.

“Before transferring the legal fees fund to Rodney, I had asked him Laki Niu’s fees and the reimbursement of our local expenses.  Rodney said that he did not negotiate for either and Laki Niu’s fee is our responsibility and the fact that Laki had only sent his invoice to Rodney around August 2017.

“For CV68, Rodney has negotiated and agreed with Tongasat (Govt is not part of this case) as per Chief Justice minute in 2016 that the legal fees if I recall correctly is around $46,000.  Tongasat has not paid this to date to PSA’s account nor directly to Rodney.

“Rodney cannot include Laki’s fees when he had not received his invoice.”

In response, Teisa, who is also a lawyer, told ‘Amanaki she would convey her e-mail to Hon Pōhiva, including her assertion that Laki’s fees of $7,025.55 were not included in claims to be paid by Tongasat because Laki was late in submitting his fees to Harrison.

She would also tell Hon Pōhiva the National Solidarity Fund was empty.

“Just to help things out and for ease of references and discussions, I would recommend a thorough and detailed financial report of the National Solidarity Fund (if not already done) so that when PM raises the issues with Harrison and all relevant parties, there are written financial statements to refer to,” Teisa told ‘Amanaki

‘Amanaki told Teisa and other e-mails recipients that trying to pay Niu’s fee would be difficult.

“Now our problem is how are we going to pay for Laki Niu’s fees of $7,025.55,” ‘Amanaki wrote.

“PSA does not have the funds for this payment.

“Our National Solidarity Fund from the fund raised in 2014 is finished.

She then made some recommendations including:

“We ask Rodney to take Laki’s fees from Tongasat’s fees for CV46 which is $46,000;

“We write a letter to Tongasat to settle this long overdue legal fee as soon as possible (“asap”).

She also asked Hon Pōhiva’s son Po’oi and Teisa: “Please let Ákilisi know of this so he can discuss it with Rodney.”

For more information

PSA head rebuts Kele’a newspaper’s attacks as petition to investigate Cabinet submitted

Man arrested over fatal hit and run in Tongatapu

A 52-year-old man from Tatakamotonga, died after he was hit by a vehicle on Taupī rd early Friday night 15 June.

The driver failed to stop after the accident.

Police have now confirmed they have arrested and charged a driver over the incident.

A 22-year-old man has been charged with failing to stop and ascertain injury and will is set to appear in a Magistrate court.

“The family of the deceased when he failed to return home went to check on his whereabouts and found him lying on the roadside of Taupi Road along with his bicycle,” Acting Superintendent Sisi Toutai Tonga said.

This latest fatal incident brings the total number of deaths on the road this year to 15.

“Accident like this is preventable and we all need to do our part to reduce deaths and injuries on our roads,” Tonga said.

Tonga Police would like to send their condolences to the family of the deceased.

The suspect is under police custody while Investigation continues.

Court orders family to vacate land after bringing down verdict in dispute

The Lands Court has ordered a family to vacate a block of land after it found they were living there illegally.

Havea Hikule’o Fonua was granted a town allotment at Kolofo’ou known as Sila’a.

He inherited Sila’a as heir following the death of his parents. For a time Havea was also registered as the holder of another town  allotment that he had been  granted earlier,  known as Feingaola.

When this was discovered by the Ministry of Lands, Havea was told that he had to surrender Feingaola. Feinagola was then granted to ‘Alifeleti ki Ha’angana

This action arose because Havea’s brothers Fifita and ‘Alifeleti, were given permission to live temporarily on Sila’a by Havea, but then refused to leave.

Havea and his son, Nafetalai Fifita Niua Fonuai, sought an order evicting Fifita and ‘Alifeleti from Sila’a. They also sought the cancellation of ‘Alifeleti’s registration of Feingaola in favour of Nafetalai who they say should have succeeded to Feingaola as Havea’s heir.

Fifita and ‘Alifeleti argued that Havea could not lawfully hold two town allotments at one time and the grant to him of Sila’a was void under Section 48 of the Land Act.

In his summary of the case the judge said it appeared Havea was not required to complete an heir’s affidavit when claiming Sila’a and the Ministry was not then aware that he already held Feingaola.

“There was nothing sinister about this,” the judge said.

“Havea impressed me as an honest witness with an imperfect knowledge of Tongan land law.

“He understood that he was not allowed to hold two town allotments and that upon claiming Sila’a he would have to surrender Feingaola.

“However, he mistakenly thought that he was able to decide to whom Feingaola would be given. He offered Feingaola to his brother in the United States who did not want it.

“When the Ministry of Lands became aware that Havea held Feingaola he was told that he had to surrender it. Havea then decided to give Feingaola to ‘Alifeleti as he did not have any land of his own. It does not appear that anyone considered at the time that Havea’s grant of Sila’a was defective or that Nafetalai, not ‘Alifeleti, should inherit Feingaola.”

Havea wrote to the Minister on January 4, 2012, asking that Feingaola be transferred to ‘Alifeleti.

On receipt of Havea’s letter the Ministry regarded Feingaola as having reverted to the Crown.

‘Alifeleti applied for Feingaola on 9 May 2012 and it was granted to him on 12 October 2012.

In around 2012, Havea asked ‘Alifeleti to live on Sila’a and look after the property for him. Around  the same time, Fifita asked Havea if he  and  his  family could live on Sila’a and Havea agreed.

Havea said the arrangement he had with Fifita and ‘Alifeleti was that they would live on Sila’a free of charge on a temporary basis until he wanted it back.

In 2016, Havea asked Fifita and ‘Alifeleti to vacate Sila’a. When they did not do so he had his lawyer, Mrs. Vaihu, write to them in January 2017 requiring them to leave by 1 March 2017.

On 22 February 2017, Fifita’s lawyer, Mr. Corbett, wrote to Mrs. Vaihu. He asserted that Netane  and  Mele  had  wanted Sila’a  to be subdivided for their four sons and sought the division of the land in accordance with the parents’ wishes. He advised that Fifita would not vacate Sila’a without  a  Court order.

Having considered the evidence and legal precedents, the court ordered that Fifita and ‘Alifeleti and members of their families and anyone else occupying Sila’a with their permission or consent are to immediately vacate Sila’a.

They were ordered to leave behind  any possessions of Havea, including the main dwelling house  and  all its fittings.

The court ordered the Ministry to cancel ‘Alifeleti’s deed of grant  for Feingaola.

Nafetalai now had to apply for Feingaola.

Havea and Nafetalai were entitled to costs.

Dispute over multimillion dollar transferred to Princess Pilolevu, Tongasat heads to Supreme Court

The dispute over a payment of US$25,450,000 made by a former Tongan government to Princess Pilolevu Tuita and her Tongasat Satellite company will be heard in court on Monday next week.

The money was paid by the Republic of China to the Government of Tonga in May 2011 and paid to or for the benefit of Tongasat in around June of that year.

Prime Minister ‘Akilisi Pōhiva argued that the payment to or for Tongasat was unlawful within the meaning of the Public Finance Management Act.

Hon Pohiva, who began the case in 2013 when he was in opposition, and the Public Service Association (PSA) wanted Tongasat and the Princess to pay back the money to the government.

Kaniva News understands the lawyer for Hon Pohiva and PSA, Dr Rodney Harrison from New Zealand has arrived in Tonga this evening.

The hearing on Monday comes after Hon Pōhiva won a legal fight with Tongasat in May 2017 over the refusal of the company to release documents regarding the transfer of the money.

At the time, the Lord Chief Justice Owen Paulsen ordered that Tongasat and the Kingdom of Tonga clearly state what documents they had relating to the transfer of Chinese money to Princess Pilolevu’s company.

Tongasat argued that it had an Exclusive Agency Agreement with the Kingdom to market and manage the licensing and  frequency  assignments of orbital slots registered by the Kingdom with the International Telecommunications Union.

In its submission to the Supreme Court it claimed a dispute had arisen with China Electronic System Engineering Company (CESEC), a corporation associated with the People’s Republic of China (PRC), over its unlawful use of the orbital slot at 130°E.

Tongasat said it concluded on behalf of the Kingdom a settlement with CESEC under which CESEC would pay US$49,900,000 in two tranches of US$24,451,000 on 31 July 2008 and US$25,449,000 on 31 December 2010 and that Tongasat was to receive 50%  of  the  first  payment and, subject to further negotiations, ·50% of  the  second  payment.

Tongasat alleged that at the request of CESEC and the Chinese government the money was recorded as aid grant money and not as settlement of the dispute.

This was for reasons of ‘State discretion,’ but in the knowledge that it was really a payment for the unlawful use of the orbital slot.

The judge criticised the satellite company’s defence.

“The logic underlying Tongasat’s statement of defence is sometimes difficult to follow,” he said.

“There are important pieces of the jigsaw missing.”

For further information

The Princess, the PSA, Pohiva and the Chinese millions set to go back to court

Tonga beat Samoa 28 – 18

REUTER: Tonga scrumhalf Sonatane Takulua has orchestrated his side’s 28-18 victory over Samoa in their Pacific Nations Cup rugby union clash in Suva, Fiji.

Takulua contributed 13 points with the boot on Saturday, while his tactical kicking kept Samoa pinned in their own territory for much of the game and set up a second-half try to replacement winger Penikolo Latu.

Viliame Lolohea and former NRL player Cooper Vuna also scored first half tries for the Tongans, who were beaten 16-15 by Georgia last week.

Samoa, who lost 24-22 to Fiji in the opening round of fixtures, again made numerous basic handling errors and had few opportunities to score against a strong Tongan defence.

The Samoans were presented with an opportunity to claw back their 28-6 deficit when Tonga were hit with a succession of penalties and three yellow cards in the last 15 minutes.

Tonga’s replacement hooker Seta Sakalia was the first to be marched for a professional foul in the 68th minute, and the Samoans capitalised with a long-range Ed Fidow try.

Paula Ngauamo, who had to come back on for Sakalia, was then sinbinned in the final minute for a no-arms tackle before Sitiveni Mafi got a yellow for a professional foul long after the fulltime hooter that allowed Samoa’s Melani Matavao to cross.

Fiji and Georgia face off for the Pacific Nations Cup title at the same Suva venue later on Saturday.