Monday, June 23, 2025
Newsletter
Support Kaniva
Home Blog Page 7

Tonga’s $992m budget funds $30m new ‘bond market policy’ with 2-3% loans to replace costly bank financing

By
Kalino Latu
-


Nuku’alofa, Tonga – Tonga’s Parliament is in session today, deliberating the country’s largest-ever budget—a historic $992.8 million proposal—with live broadcasts enabling citizens to witness the debate in real time.

Prime MInister and Minister of Finance Dr ‘Aisake Eke

This follows Parliament’s approval of the Prime Minister’s submission of the 2025-2026 government budget, which passed with 21 votes in favour.

This decision allows the Prime Minister, Dr Aisake Valu Eke, who also serves as the Minister of Finance, to present the details of the budget to the House before it is finalised by July 1.

The budget breaks down into $560.4 million (59%) in recurrent cash expenditures, covering essential government operations, and $389.8 million (41%) for developments.

Detailing the $560.4 million (59%) in recurrent expenditures, Dr Eke highlighted a $29.1 million deficit, meaning the government will need to secure additional funding, raising total recurrent costs to $589.5 million.

Dr Eke defended the allocations, stating the budget aligns with the King’s directives, national priorities, public feedback from recent summits, and government partnerships.

The Minister of Finance announced that the government will secure a $43 million bond to fund the $29.1 million budget deficit. Of this amount, $13 million will be allocated to bond repayments in the new fiscal year, while the remaining $30 million will be directed to the private sector through the new domestic bond market.

Domestic Bond Market

Dr Eke revealed that by the next fiscal year, the government plans to establish a domestic bond market with an initial $30 million allocation. He noted that $300 million in government funds currently held in banks remains unspent.

The new bond policy will utilise $30 million (10%) of these funds to offer bonds to private businesses at an interest rate of 2-3%, significantly lower than the 6-10% rates charged by commercial banks.

He described this as a major shift, providing businesses with cheaper, more accessible financing while reducing reliance on traditional bank loans.

He emphasised his administration’s policy of funding and supporting the private sector, citing a historical lack of financial assistance.

He said that previously, private businesses relied heavily on banks for funding, which often imposed strict lending requirements.

However, opposition lawmakers have raised concerns over reduced infrastructure and long-term investment funding, questioning whether the budget sufficiently addresses Tonga’s development needs.

As deliberations continue live, the nation awaits Parliament’s final decision, which will determine Tonga’s economic direction for the coming year.

The new budget marks a shift from last year’s $899 million budget, which was 52% domestically funded ($452.3 million) and 48% reliant on overseas partners.

Deputy Prime Minister updates media on police probe, warns against misreporting

By
Kalino Latu
-

Deputy Prime Minister Taniela Fusimālohi has sternly warned reporters about the dangers of inaccurate reporting while providing an update on a complaint he lodged against former Cabinet Minister Sevenitiini Toumo‘ua.

Former Minister of Infrastructure and Civil Aviation Seventeen Toumo’ua

Toumo’ua alleged that staff from Fusimālohi’s Ministry of Infrastructure had dismantled a house previously provided to a family in Ha’asini.

His Facebook allegations included what appeared to be photos of himself and the family living in the house.

The allegations had been promptly raised in Parliament, leading to heated exchanges between Toumo’ua and Fusimālohi, who vehemently dismissed them as false. Fusimālohi said at the time the matter was reported to the Police.

He told reporters on Friday during a press conference that the Police are investigating (“fai e ngāue ki ai”) the complaint.

The disputed house was reportedly part of a government project involving hundreds of prefabricated homes built for the recent Pacific Leaders Forum in Tonga.

After the event, some of these temporary structures were allocated to needy families.

Fusimālohi previously emphasised in the House that the former minister’s claims were false.

On Friday, he urged reporters to verify facts before publishing analyses.

“Inaccurate reporting could land you in court,” the Deputy Prime Minister cautioned, referencing Tonga’s sedition laws, Section 48 and the Electronic Communication Abuse Offences Act (2020).

The latter criminalises using digital platforms to harass or spread harmful content, with penalties of up to $10,000 in fines or three years’ imprisonment, or both.

Deputy Prime Minister Fusimālohi issued this update following his warning to FM 87.5 regarding its analysis program, which inaccurately reported that the government had illegally terminated contracts of former directors of government boards.

Fusimālohi clarified that the contracts had expired naturally in March of this year as per their original terms, and the Eke government had simply declined to renew them.

He noted that the Caretaker government had pre-signed extension of these contracts in December 2024, a move the Eke government maintains was illegal, citing the Caretaker government’s limited authority under the law.

Police investigations into the former minister’s social media posts are ongoing.

Tonga Police probationary constable arrested in drug bust, methamphetamine seized

By
Kaniva Staff
-

In a shocking turn of events, a 21-year-old probationary constable from Tonga Police has been arrested for possession of illicit drugs following a successful operation by the Drug Enforcement Unit.

A Tongan Police officer. Photo/Kaniva Tonga

The arrest occurred on the evening of Saturday, May 31, 2025, during a targeted crackdown on drug-related activities in Nuku’alofa.

Acting on a tip-off about a vehicle allegedly involved in drug sales, officers swiftly mobilised and apprehended the suspects.

A 31-year-old male passenger was also arrested alongside the suspended without pay constable.

Authorities seized methamphetamine, cash, and drug paraphernalia during the operation.

Both individuals remain in custody as investigations continue.

The Tonga Police Commissioner condemned the incident, emphasising that such behaviour undermines public trust.

“This is not a reflection of who we are,” the Commissioner stated, praising the dedication of the majority of officers while reaffirming a zero-tolerance stance on crime within the force.

The public is urged to report suspicious activities as the Tonga Police intensify efforts to combat the spread of illicit drugs in communities.

For media inquiries, contact the Tonga Police Media & Public Relations Office at 740-1614.

Gov’t slashes board costs by $1M in cronyism purge; King signs ban on minister-picked directors

By
Kalino Latu
-

NUKU’ALOFA—The king has approved the Eke government’s bill to eliminate the practice of Cabinet Ministers selecting members of the government’s board of directors based on cronyism.

King Tupou VI

The move delivers on a campaign promise to overhaul all government bodies, targeting reform and alleged corruption.

The reforms significantly reduced the cost of board salaries by 29%, slashing annual spending from $1.4 million to just $400,000 and shrinking the total number of directors from 35 to 16.

The seven government boards had been consolidated into five, with appointments now guided by strict “fit and proper” standards.

The government said the move would end the old practice of selecting directors based on personal ties, church affiliations, or political favouritism.

King’s approval

Prime Minister Eke announced the King’s approval of the law on Friday, marking two milestone decisions. First, any government-owned business registered as a company must also be processed and registered as a public enterprise entity.

He said the law also mandates publicly advertised recruitment processes for all director appointments.

The Prime Minister, his Deputy Prime Minister, and several Cabinet Ministers were holding a press conference on Friday.

Deputy Prime Minister Taniela Fusimālohi claimed significant financial losses across government boards resulted from unscrupulous decision-making.

He said the government’s new mandatory “fit and proper person” criteria for selecting qualified, experienced directors will make sure only decent members are selected.

Fusimālohi questioned the appointments of the former board members when he saw a list of names.

He warned that the public would ultimately bear the financial consequences of poor board decisions.

He said this was why the government sought suitable and decent people to operate the government’s businesses.

“Look at Lulutai Airlines. What is happening there raises the question of a fit and proper person.

“Tonga Development Bank, there is the same question there, a fit and proper person”.

“This is not just about saving money—it’s about ensuring qualified, independent leaders oversee public resources,” Fusimālohi said in Tongan. 

“No more appointments just because someone is a friend or sits in the same pew on Sundays.”

Questions about the selection process follow a May 2022 Supreme Court case in which former Minister Poasi Tei admitted appointing Saia Penitani—a campaign helper in Houma village and ex-Ministry of Health staffer—to three boards (Tonga Power Ltd, Tonga Water Board, and Tonga Waste Authority) as Minister of Public Enterprises with Cabinet approval.

Tei denied in court that this was political payback, insisting he appointed Penitani based on trust in his ability to deliver results.

The new law

The new law mandates that government businesses be registered as companies and become public entities.

It follows allegations that the former Hu’akavameiliku government failed to register Lulutai Airlines as a Public Entity within the legally required one-year period – an omission that allowed Cabinet Ministers serving on the Lulutai board to retain their positions.

No legal challenges from outgoing board directors, gov’t had ‘productive meeting’ with them, DPM says as tensions rise over media criticism

By
Kalino Latu
-

 NUKU’ALOFA, Tonga—Deputy Prime Minister Taniela Fusimalohi has revealed that none of the board directors whose contract renewals were rejected by the Eke government pursued legal action, despite earlier claims of illegality.  

Katalina Tohi (L) and Deputy Prime Minister Taniela Fusimālohi

Fusimālohi also clarified that reports claiming the government had illegally terminated the contracts of former directors were misleading.  

He explained that the directors, appointed by the previous government, had remained in their board roles until March this year—the official end of their contracts.  

The Eke government rejected the pre-renewal of those contracts, which the Caretaker government approved around December 2024.  

Fusimālohi defended the government’s decision, stating that the Caretaker government lacked the authority to renew contracts as it held limited powers pending the incoming government’s transition.  

Agreement with former directors  

Fusimālohi revealed that the Minister for Public Enterprises had a “productive discussion” with the former directors.  

Fusimālohi said the Minister met with them and explained the government’s new policy and guidelines for all government boards.  

According to Fusimālohi, the Minister informed the former directors of their contract end dates, explained the new restructuring process, noted that a new recruitment would occur, and stated they could reapply.

Fusimālohi said in Tongan: “Pea’ ne ‘osi fai e talanoa lelei ia ‘a e Minisitaá mo kinautolu. Ko e kaha‘u ē te tau fokotu‘utu‘u lelei. Ko ho‘omou me‘á ē ‘oku ha‘u ‘o ngata hē. ‘E toe fai e likulutimeni fo‘ou. Mou kei ‘enitaitolo pe ki ai.”  

The revelation and clarifications come amid escalating tensions between the government and local media, particularly after Fusimalohi called for the removal (“to‘o”) of FM 87.5’s radio show in which host Siaosi Lavaka featured Tongan-based Auckland lawyer Nalesoni Tupou, who allegedly claimed that the contract terminations were unlawful.   

Directors’ Exit Sparks Legal Debate

However, critics, including broadcaster Katalina Tohi, who owns FM 87.5, have accused the Eke administration of disregarding natural justice.  

Tohi warned that the former directors had legal rights and referenced past cases where similar government actions led to costly court rulings.  

Responding to Tohi, Fusimālohi emphasised that journalists (kau faiongoongo) must verify their facts before presenting commentary or analysis. 

He explained that this is why the government holds one-hour press conferences every Friday—to ensure the media receives accurate information. 

He said he had already advised journalists to read Parliamentary Hansard and government statements before reporting.  

COMMENTARY As King welcomes Eke government public curiosity turns to constitutional demands 

By
Kalino Latu
-

Commentary – The Eke government’s recent update, confirming the Prime Minister’s regular meetings with the King, signals a positive relationship between the monarchy and the current administration.

PM Dr. ‘Aisake Valu ‘Eke holds regular meetings with the king, marking improved executive-royal relations under Clause 50(a)3 of Tonga’s Constitution.

This development carries particular significance, given the stark contrast with former Prime Minister Huʻakavameiliku’s tenure, when tensions with the palace escalated to the point where the King promptly approved his resignation letter. 

The late Prime Minister Pōhiva Tu’i’onetoa once sought membership in the King’s Privy Council, proposing this would allow him to advise the monarch in real time on governmental matters. The King denied the request, maintaining that both leaders must adhere to their constitutionally mandated roles.

It appears Tu’i’onetoa failed to recognise the superior opportunity available under Clause 50(a)3, which empowers the Prime Minister to report to the King on state affairs formally.

The warm King-PM meetings also mark a striking departure from years of royal friction with previous governments. Where past prime ministers faced cold shoulders—despite constitutional obligations for regular briefings—the King’s openness to Eke suggests cautious approval of the current administration.

Constitutional Duties Defined

This shift raises questions: Is this mere symbolism, or does it reflect genuine progress in governance?  

The answer lies in what sets Eke apart from his predecessor. Unlike Huʻakavameiliku, under whose administration corrupt systems persisted, Eke’s demonstrated commitment to dismantling Tonga’s entrenched patronage structures appears to have earned him the King’s confidence.

Eke’s administration has demonstrated exceptional transparency through its unprecedented weekly hour-long press conferences—a practice maintained every Friday since taking office.

The government has also established a high benchmark for accountability by delivering on key campaign promises, including comprehensive reforms of Lulutai Airlines, a thorough review and restructuring of all government boards, and the resolution of the protracted Tonga Development Bank/National Reserve Bank dispute, among other significant policy achievements.

This leads us to the next critical question: What does Tonga’s Constitution actually say about King-PM meetings? To understand this, we must examine the constitutional text itself.  

Clause 50(a)3 of Tonga’s constitution says:

“The Prime Minister shall regularly and as required report to the King upon matters that have arisen with the government and upon the state of the country.”

From an analysis point of view, the phrase “matters that have arisen with the government and upon the state of the country” could refer to pressing issues impacting both national leadership and the nation as a whole.

These typically involve government-related controversies, such as corruption scandals, financial mismanagement, or lack of transparency, that undermine public trust.

At the same time, they reflect broader national challenges, including economic instability, social inequality, or systemic failures in public services. 

Fakalotofale Drives Reforms

In other words, these meetings are fakalotofale (a Tongan term for confidential in-house discussions) between the King and Prime Minister, where open dialogue on any matter is permitted.

Late Prime Minister Akilisi Pōhiva told Kaniva News the King reviewed Cabinet travel records during a meeting and objected to two ministers’ excessive trips. The PM then warned ministers about the King’s concerns.

In the context of Lulutai Airlines’ failures, including the $60 million in missing records and the Tonga Development Bank/National Reserve Bank saga, these matters absolutely warrant reporting to the King under constitutional Clause 50(a)3. Since the government’s announcement of its board restructuring plans and director appointments, these are key reforms the King deserves to know, and they must be reported to the King.  

This meeting enables the Prime Minister to inform the King about parliamentary obstructions, particularly opposition from the nobility regarding critical bills, that undermine governance efficiency. This communication is crucial, as the King holds unique influence over the nobility that could help resolve such impasses.

These meetings are not limited to presenting a strategic opportunity for the Prime Minister. Demonstrating government competence, he can build royal trust while tactfully advocating for Tonga’s most urgent need: systemic political reforms.

Transparency here builds confidence in the government’s overhaul of Tonga’s compromised systems. 

Tonga Police enforce Sunday trading ban in wake of King’s call for Sabbath observance

By
Kaniva Staff
-

The Tonga Police have reinforced their warning against Sunday trading, following King Tupou VI’s recent reaffirmation of the nation’s Christian values and strict Sabbath observance.

The monarch’s remarks come amid reports by Kaniva News highlighting uneven enforcement of Sunday trading laws, with some businesses allegedly remaining open for tourists while locals face restrictions.

Under Tongan law, operating or shopping at businesses on Sundays is prohibited, with penalties for vendors and customers.

The police statement this evening follows numerous complaints about shops operating across Tongatapu on Sundays, which violates national law.

Under Tongan law, opening or operating a shop on Sundays, as well as selling or purchasing goods on this day, is illegal.

Authorities have made it clear that both shop owners and customers found breaking these rules will face consequences.

The police emphasised the importance of upholding Tonga’s cultural and religious traditions, urging the community to respect Sunday as a sacred day.

In their announcement, the Tonga Police called on the public to honour the country’s faith-based values by refraining from commercial activities on Sundays.

The statement concludes with a respectful tone, reaffirming the police’s commitment to maintaining the law while preserving the nation’s way of life.

It comes after the king reminded citizens of broader biblical commandments such as “Thou shalt not steal” and “Thou shalt not covet,” urging Tongans to reject jealousy and materialism.

Massive Drug Bust at Auckland Airport: $26M Worth of Meth and Cocaine Seized

By
Kaniva Staff
-

New Zealand Customs officers made a major breakthrough in the fight against drug trafficking, intercepting 67.8kg of methamphetamine and 1.1kg of cocaine at Auckland International Airport in two separate operations on 29 May 2025.

The combined street value of the seized drugs is estimated at up to NZ$25.81 million, marking one of the most significant drug busts at the border this year.

In the first interception, customs officials discovered 50kg of methamphetamine hidden in unaccompanied baggage arriving on a flight from Malaysia.

Hours later, officers identified 17.8kg of methamphetamine and 1.1kg of cocaine concealed in the luggage of a 22-year-old male passenger arriving from New York. The suspect was immediately arrested and now faces serious drug importation charges.

Customs Acting Manager Donnelle Nicholson commended the officers involved, stating, “Both these seizures were the result of the excellent skills of our frontline officers who recognised tell-tale signs that prompted further investigations. Customs officers are relentless in their drive and commitment to protect our border and people from harm. They take a great deal of pride when they achieve successes like these overnight”

Nicholson emphasised that customs officers remain unwavering in protecting New Zealand’s borders from illegal substances.

The latest seizures add to an already impressive record for 2025, with customs officials stopping approximately half a tonne of illicit drugs from entering New Zealand through Auckland International Airport alone this year.

Authorities attribute this success to enhanced screening technologies, improved intelligence sharing, and the sharp observational skills of border protection staff.

New Zealand Customs encourages the public to report any suspicious activity related to drug smuggling through their 24-hour confidential hotline at 0800 WE PROTECT (0800 937 768) or anonymously via Crimestoppers on 0800 555 111.

The recent intercepts serve as a stern warning to criminal organisations attempting to traffic drugs through New Zealand’s borders.

As investigations continue, authorities have not ruled out further arrests concerning these cases.

The massive haul underscores the ongoing challenges faced by border security agencies in combating the international drug trade while demonstrating New Zealand’s strong stance against narcotics trafficking.

Tonga in health crisis as last ENT specialist departs – PM Eke scrambles for solution

By
Kaniva Staff
-

Tonga is facing a critical shortage in specialised healthcare services following the departure of Dr Āmone Vaka’uta, the country’s last remaining Ear, Nose, and Throat (ENT) specialist.

He is said to have taken up a new position in the Marshall Islands.

The Prime Minister was informed this afternoon that the lack of an ENT specialist has raised significant concerns among the public regarding access to essential medical care for related conditions.

Prime Minister Eke said there is currently a doctor working in the ENT department, but he did not say whether he was a specialist.

“We are aware of this critical gap and are taking steps to resolve it,” PM Eke stated in Tonga.

However, he stopped short of specific details about the government’s plans or timeline for securing a replacement specialist.

Tonga’s Ear, Nose, and Throat (ENT) department was established in 1987 by the Late Dr Leiukamea Saafi, a consultant specialist and head of the department.

After the report of the vacancy this week, social media platforms have seen growing calls for the government to prioritise medical workforce development to prevent similar shortages in other specialities.

In 2020, it was reported that the Eisdell Moore Centre from New Zealand worked with colleagues in the Pacific region, including Tonga, to support the development of Ear and Hearing Care services in the region.   

It was reported at the time that a volunteer Audiology Specialist from New Zealand, Mr Philip Luey, started working at the clinic in Tonga two days a week to assist with the development of the new audiology service. 

A local visiting team regularly travelled around the outer island to conduct outpatient clinics and surgeries for the local community.

Deputy PM warns journalists: ‘Get Your Facts Right’ – suggests radio show be shut down over alleged misinformation

By
Kalino Latu
-

Nuku’alofa, Tonga—Deputy Prime Minister Dr Taniela Fusimālohi has issued a sharp warning to journalists, urging them to verify facts before reporting.

Deputy Prime Minister Dr Taniela Fusimālohi

This follows criticism of an FM87.5 radio program hosted by Siaosi Lavaka and featuring New Zealand-based Tongan lawyer Nalesoni Tupou.

According to Fusimālohi, the controversy arose after Tupou allegedly claimed that the government acted illegally when it terminated contracts of the former Board of Directors of the government.

Fusimālohi strongly refuted the claim during a press conference in Nuku’alofa this afternoon, stating that the termination was “nothing wrong.”

He claimed that the caretaker government had wrongly renewed the contracts, as it was legally prohibited from making decisions that could result in such “financial commitments.”

The Deputy PM went further, suggesting that the radio program should be shut down, after accusing it of spreading misinformation that could mislead the public.

Katalina Tohi, owner of FM87.5, challenged Fusimālohi regarding the contract terminations. She warned that similar situations had occurred previously when the government made decisions that resulted in court cases in which the government was ultimately fined.

However, the Prime Minister stepped in, clarifying that a caretaker government, according to the law, was not in a position to make decisions that should have been left for the upcoming government.

It is understood that the Board of Directors’ contracts were supposed to end in March 2025, but the caretaker government renewed them around December 2024.

The government has not indicated whether it will take formal action against the station, but Fusimālohi’s remarks signal a hardening stance against what officials perceive as irresponsible journalism.

This latest clash highlights ongoing tensions between the Tongan government and media over reporting standards and legal interpretations.

The Minister of Public Enterprises Piveni Piukala has accused local journalists of reckless reporting regarding allegations about the review of government boards.

He said that none of them had actually approached him with questions to verify the facts surrounding the issue.

1...678...890Page 7 of 890
© Copyright 2025 Kaniva Tonga News & Entertainment