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Tongan delegation to visit forum on forging links with iwi businesses this week

A Tongan delegation led by Dr Nailasikau Halatuituia and Maliumoeao Mafi will attend a Māori Pacific Business Forum in New Zealand this week.

The two day forum is designed to allow Pacific resource owners and Waikato-Tainui to establish business links.

The forum, organised by the Pacific Cooperation Foundation will be held at the Waikato-Tainui College for Research and Development on June 26 – 27.

Representatives from Fiji, Samoa, Vanuatu, Solomon Islands, New Caledonia, the Cook Islands and Papua New Guinea will also attend.

The event is being held jointly by the PCF and Te Ohu Whai Ao, an indigenous business development trust set up by Māori business leaders.

Its aims included developing global indigenous business, trade and development.

“While there are many similarities between Pacific island countries and Aotearoa in terms of indigenous cultures, ancestry links and natural resources, they also share similar development challenges,” the Pacific Cooperation Foundations’ CEO, Don Mann, said.

In an interview with Kaniva news earlier this year, Mann said the PCF had a long term goal of creating business opportunities between Māori business and Pacific islands.

Iwi economic entities were worth about NZ$40 billion and Pacific nations could learn from iwi about how indigenous bodies had developed over the years into successful businesses and managed economic and social transitions.

According to a recent report, Tainui has $1.4 billion worth of property assets, with an average annual return to investors of seven percent.

The main points

A Tongan delegation led by Dr Naliasikau Halatuituia and Maliumoeao Mafi will attend a Māori Pacific Business Forum in New Zealand this week.

The twoday forum is designed to allow Pacific resource owners and Waikato-Tainui to establish business links.

For more information

Te Ohu Whai Ao

http://www.teohuwhaiao.org/about.html

Iwi becoming a growing financial force – report

https://www.rnz.co.nz/news/business/382048/iwi-becoming-a-growing-financial-force-report

Business councils, private sector voice, vital to Pacific Cooperation Foundation says new CEO

FISA failed to check out MV Niuvakai properly before paying over the odds, says Ombudsman

A New Zealand-based marine surveyor identified 17 deficiencies in the MV Niuvakai before Tonga’s national shipping line paid three times what the 34 year- old vessel was worth.

The revelation come in a detailed statement from Tonga’s Ombudsman who released the information in the wake of yesterday’s press conference on his investigation into allegations of impropriety made by Kele’a newspaper.

The Ombudsman said the Friendly Island Shipping Agency’s board had failed to conduct a proper evaluation of the vessel.

The allegation about the ship appeared in Kele’a in Tongan: “Mahalo ‘oku ‘ikai loto  ‘a Clive ia ke ta’ofi ‘a e ngaahi fu’u pau’u  ‘oku fakahoko  ‘e he kau memipa  ‘o e poate pea ka ‘ikai  ‘oku ne poupou’i  pe  ‘e ia  ‘a e   founga fakatakaka  ko  ‘eni.  Hange  ko hono fakatau  mai  ‘e  he  FISA  ‘a  e fu’u  vaka  ko e Niuvakai ‘aia na’e miliona neongo ko hono mahu’inga totonu ‘oku si’i ‘aupito ia ai. “

As Kaniva news reported yesterday, Ombudsman ‘Aisea H. Taumoepeau said that in February 2014, Pacific Royale Shipping sold a vessel to Friendly Island Shipping Agency for NZ$936,500.  The vessel was then renamed the MV Niuvakai

Read more:

In April 2017, three years after the purchase of the vessel, New Zealand Marine Brokers inspected and evaluated the MV Niuvakai as worth NZ$350,000.

In 2013 Pacific Royale Shipping, the  owners of the MV St Theresa, put forward a business proposal to FISA to consider buying the ship.

At the time the Cabinet Economic Development Committee was looking at increasing primary exports to the neighbouring islands Fiji, Wallis, Samoa, American Samoa and Tuvalu and also to increase shipping runs to the northern islands of Tonga.

FISA had carried out a comparability exercise comparing criteria and prices, in particular between MV Baltic and MV St Theresa.

Found wanting

Dunsford Marine inspected the vessel on January 21-22, 2014, during which it identified 17 deficiencies. MV St Theresa was found wanting in most capabilities.

The purchase went ahead despite these findings.

On April 5, 2017, three years after the purchase of the vessel, New Zealand Marine Brokers inspected and evaluated the MV Niuvakai as worth NZ$350,000.

The Ombudsman said there was no evidence that the vessel was independently valued before it was purchased by FISA except for the comparative exercise made with the MV Baltic.

“It was not clear whether FISA wanted a further valuation or were satisfied with information presented to them,” the Ombudsman said.

The Dunsford Marine report said: “It is noted that even if the MV Theresa complies with the criteria that FISA requires we would still need to conduct a thorough due diligence to ensure that the proffered information is verified.”

The report expressed deep concern on the viability of buying the MV St Theresa.

The Ombudsman said a later report from Dunsford Marine, carried out after the agreement to buy the vessel had been signed clearly showed deficiencies about the vessel which were not revealed by her owners. The report from New Zealand Marine Brokers, made in 2017, highlighted more problems.

Controversy

The purchase of the MV Niuvakai was surrounded by controversy, not least because it was surrounded by financial complications.

In March 2014 we published details of an e-mail from former Finance Minister Lisiate ‘Akolo which revealed that the Tongan government had urged a potential buyer of the former St Theresa to help pay the owners’ loan with their bank in New Zealand.

The vessel was owned by the Ramanlal brothers, who were close friends of the late King George V while he was Crown Prince and then when he became king.

In 2017 Kaniva news reported that the Niuvakai had been put up for sale.

The MV Niuvakai became a financial liability after it became clear there were not enough goods to export.

The vessel was unable to lift the 20 foot (six metre) containers typically used for shipping with its deck crane and was deemed to be unprofitable on voyages lasting more than three days.

The main points

  • A New Zealand-based marine surveyor identified 17 deficiencies in the MV Niuvakai before Tonga’s national shipping line paid three times what the 34 year- old vessel was worth.
  • The revelation come in a detailed statement from Tonga’s Ombudsman who released the information in the wake of yesterday’s press conference on his investigation into allegations of impropriety made by Kele’a newspaper.
  • The Ombudsman said the Friendly Island Shipping Agency’ board had failed to conduct a proper evaluation of the vessel.

Fire razes two houses in Tongatapu

Fire investigators are looking into the cause of two storey Pātangata house fires yesterday.

There were no reports of anyone having been hurt.

A newly constructed one-storey house was razed by the fire, a source told Kaniva news. The house belonged to Kinikini and Fātima Nonu.

The other, which was a two-storey house belonged to Tevita and ‘Ana ‘Emelio.

Reports said the fire started at ‘Emelio’s house before it spread to the Nonus’.

Tonga Fire Services said a statement would be released with details of the damages.

Queensland market imports fish from Tonga

A new Tongan business in the Sunshine State, Queensland, Australia has begun importing seafood from Tonga. 

Pacific Sunrise Fishing Brisbane started the business to offer high-quality fish from the kingdom to customers in both Brisbane and the Sunshine Coast.

The business was owned and operated by Tongan entrepeneur, Kristian Palu.

The supply came from Pacific Sunrise Fishing Tonga which was operated by Eddie and Rosemarie Palu at Tu‘imatamoana Wharf in Nuku‘alofa. The Tongan supplier has been supplying the Kingdom and other countries, including the USA, Japan and New Zealand for over 14 years.

Kristian said the seafood from Tonga differed in taste and quality to any other seafood available in the Australian market.

“The seafood in Tonga tastes better! The water is cleaner. And unlike many parts of the world, there is little pollution in the Tongan waters and these fish are wild caught, not farmed. The species caught are Valu (Tuna), Hakulā puaka (Swordfish), Hakulā lā (Marlin), Mahimahi (Dolphinfish) and more.”

Pacific Sunrise Fishing Brisbane received orders throughout the week with a Sunday deadline for delivery the following Wednesday. Their fish were offloaded from the boats, packed and delivered to Fua‘amotu International Airport ready for the next flight.

Brisbane’s Tongan Community are thrilled to welcome yet another new Tongan business to the Sunshine State that benefits both the economic development of the Kingdom of Tonga and the seafood market of South-East Queensland. 

USP staff want Fiji’s pro-chancellor Thompson to step aside in abuse probe

By Peni Komaisavai in Suva

Staff of the University of the South Pacific at the university’s main Laucala campus in Suva have called for pro-chancellor Winston Thompson to step aside to allow for an independent investigation into alleged abuse and mismanagement to proceed.

This was one of three demands USP staff made in a petition they presented today to the university’s senior management team.

The petition was signed by 500 staff members comprising academic and administrative, and addressed to pro-chancellor Thompson, who is also the university council chair, as well as to his deputy chair Aloma Johansson of Tonga, council members and the university’s vice-chancellor and president, Professor Pal Ahluwalia.

READ MORE: USP’s new boss – saviour or destroyer?

The June edition cover of Islands Business featuring vice-chancellor Professor Pal Ahluwalia. Image: IB

Demand number two in the petition calls for pro-chancellor Thompson to “be recused from council chair immediately,” adding “his public defence of those implicated in the allegations is premature and unprofessional and compromises his position as chair.

“Furthermore, his recent public statements against VC&P Pal Ahluwalia are unprofessional, prejudicial and damaging to the university.”

To regional governments who are owners of the USP, as well as donor partners “especially Australia and New Zealand,” university staff in their petition wanted them to ensure that the investigation into the alleged abuses would be fair, thorough and remedial actions effected.

Closely watching
University staff are closely watching the investigation process being led by the USP audit and risk committee.

The committee is headed by Mahmood Khan, a Fiji government nominee to the USP Council, and a chartered accountant who used to work in New Zealand.

In a statement last week, the university council deputy chair Aloma Johansson of Tonga said four Auckland-based accounting firms had been invited to submit bids to undertake the probe.

She said then that the Khan-led committee would meet tomorrow to select the investigation firm.

This Islands Business article was republished by Pacific Media Centre with permission. Kaniva news has a content shared agreement with Pacific Media Centre.

Ombudsman upholds allegation about ferry costs, but dismisses Kele’a’s other claims

Tonga’s Ombudsman has told the country’s government-owned shipping agency that it must carry out due diligence on buying large ship.

His comment came after an investigation showed that the Friendly Island Shipping Agency paid almost three times the value of a 36 year old ship in 2014.

Ombudsman ‘Aisea H. Taumoepeau said at a press conference this morning that in February 2014, Pacific Royale Shipping sold the vessel to FISA for NZ$936,500.  The vessel was then renamed MV Niuvakai

In April 2017, three years after the purchase of the vessel, New Zealand Marine Brokers inspected and evaluated the MV Niuvakai as worth NZ$350,000.

The Ombudsman’s investigation into the purchase of the over-priced ship was part of a set of enquiries made into allegation made in Kele’a newspaper against the Boards of Directors of the Public Enterprises. 

The claims were made in the newspaper on December 24 last year under the heading ‘Pau’u ‘i he ngaahi Poate, Ngaahi pisinisi ‘a e Pule’anga.’

The allegations about the MV Niuvakai was the only one of six claims to which the Ombudsman gave any credence.  He found no evidence to support the newspaper’s other allegations:

Kele’a claimed that PE Boards did not follow the same procurement process as Government ministries and could spend more than TP$1million without using the procurement process.

The Ombudsman said public enterprises had the power to create rules and procedures to govern their own procurement processes pursuant to Regulation 3(3) of the Public Procurement Regulations, 2015.  Carrying out their procurement processes according to their rules and procedures did not breach the Procurement Regulations.

The Ombudsman said Kele’a did not take up an offer to provide information to the investigation.

The newspaper also complained that board members were taking loans from Board funds. 

The Ombudsman said Kele’a’s publisher, Siaosi Pohiva, confirmed the allegation was about an incident alleged to have occurred at the Ports Authority Tonga Ltd (PAT) in 2011 or 2012. 

The Ombudsman told this morning’s press conference that PAT said no loans were granted to any Board members during the 2011-2012 financial year and there was no policy to allow for personal loans to be granted to any of its employees or Board members. 

PAT said the claim might have referred to a TP$500,000 loan to Waste Authority Limited in that period. The loan account was audited and disclosed in PAT’s Annual Report. The Ombudsman said there was no evidence to support Kele’a’s claims.

The newspaper further alleged that Board members were being paid gratuities, with some bonuses being as high as TP$60,000.

The Ombudsman said there was no evidence to support the claim. He said Kele’a had been invited to supply information to help the investigation, but had not done so. Since mid-2018 board directors are only paid their annual director’s fees and meeting fees.

Kele’a complained that one member of the Board of Directors of a Public Enterprise had a Board meeting in Barcelona. 

In 2017, a delegation of the Tonga Airports Limited travelled to Barcelona to attend World Routes 2017, and to finalise documentation and verification to complete the process for a security bank guarantee due to TAL for breach of contract by a Spanish contractor, GECI. The Ombudsman said the presence of the delegation in Barcelona was crucial.

Finally, Kele’a  claimed some Board members of Tonga Power Ltd were paid overtime, when this was normally reserved for low wage earners.  

The Ombudsman said that in 2018 the Board of Directors of TPL approved a sub-committee to carry out due diligence of its Enterprise Resource Planning System.  The Board ordered the sub-committee to be chaired by Director, ‘Aisake Tu’iono and Director, Fuiva Kavaliku, to work with Mr. Tu’iono on identifying and solving problems for ERP system. 

The Board approved payment to the sub-committee members by way of consultancy fees, rather than overtime.   Because the work was outside their normal duties of Directors of TPL, it required special rates.  The Ombudsman said the payment of special rates was not unreasonable. 

The main points

  • Tonga’s Ombudsman has told the country’ government-owned shipping agency that it must carry out due diligence on buying large hip.
  • His comment came after an investigation showed that FISA paid almost three times the value of a 36 year old ship in 2014.

More stories on MV Niuvaka and FISA

Israel Folau fundraising campaign page shut down by GoFundMe Australia

Sacked Wallabies star Israel Folau’s GoFundMe page has been shut down and the funds will be returned to donors, the company says.

The player’s $4 million contract was torn up in May after one of his social media posts citing the Bible was deemed homophobic.

Folau started the GoFundMe campaign last week, asking people to donate $3m to fight Rugby Australia over the termination of his contract.

The fundraising post, republished to Maria Folau’s Instagram page on Friday, explains the couple has spent more than $100,000 on legal fees to fight the termination.

As of Sunday afternoon, a GoFundMe page set up by Israel Folau had raised more than $670,000 of its $3m target.

In a statement, Nicola Britton of GoFundMe Australia said the campaign violated its terms of service.

The statement said the company was committed to the fight for equality for LGBTQI+ people and fostering an environment of inclusivity.

“While we welcome GoFundMe’s engaging in diverse civil debate we do not tolerate the promotion of discrimination of exclusion,” it said.

At the weekend, Rugby Australia chief executive Raelene Castle condemned Folau’s public appeal for money at the weekend.

“From our perspective, [GoFundMe] is a place where sick children get support, so it’s certainly not a strategy we think is appropriate,” Castle said.

– RNZ / ABC

Lobbyists in Tonga want marijuana legalised for medical reasons; MOH says kingdom too small to bear it

A group of lobbyists wants Tongan lawmakers to legalise marijuana for medical reasons, a reliable source has told Kaniva news.

It is understood an attempt by the group through the Prime Minister’s office to discuss the proposal was unsuccessful.  

The source did not provide names of the group or how many of them.

Chief Secretary Edgar Cocker said he was unaware of any “submission – but hemp is illegal as per the Tonga Drugs Act.”

A Ministry of Health spokesperson said Tonga was too small to allow marijuana to be used in any form.

Drugs testing lap

Meanwhile, the Minister of Police said in Parliament the government was planning to set up a drug lab in Tonga to provide drugs testing for evidential reasons.

Drugs in Tonga which need to be tested have to be sent to New Zealand labs.

Hon. Mateni Tapueluelu said he and the Police Commissioner were expected to attend an official meeting in New Zealand next month.

He said they would have an opportunity to visit drugs labs in the country as part of the plan for Tonga.

He said a drugs lab in Tonga could speed up work required for fact findings.

Hon. Tapueluelu said the war against illicit drugs was proceeding satisfactorily and TP$1 million had been provided to help the fight.

Rehabilitation concerns

In the meantime, there was concern in the country that little had been done to rehabilitate drug users 

The concern was raised by the director of the Mental Health Unit and head psychiatrist, Mapa Puloka, at a recent workshop in Nuku’alofa.

Dr Puloka said most of those who came to the hospital for help were put into the Mental Health Ward, but staff said ineffective services meant many were not properly cared for, Radio New Zealand international has reported.

There were almost weekly arrests of drug dealers, especially for methamphetamine or marijuana offences, and among them were senior Customs officials, who had been instrumental in “clearing” container shipments of drugs coming into Tonga from overseas, Dr Puloka said.

While there is rising concern about the health and addictive impact on users, little is being done in terms of rehabilitation.

However, health officials, church and community leaders, as well as NGOs, are meeting regularly to devise a co-ordinated plan for drug education in schools.

Medical marijuana

Last year the New Zealand government proposed legalising medical marijuana. The bill passed its third reading in December with the support of Labour, New Zealand First and the Greens. The National Party opposition also proposed a Member’s Bill to implement a medicinal cannabis regime.

Investors are interested in growing medical marijuana in Vanuatu, but no licences had been issued yet.

Radio New Zealand reported that the Vanuatu government had expressed an interest in looking at the possibility of allowing investment in cannabis or hemp for medical purposes.

However, the Director general of Vanuatu’s Ministry of Agriculture, Livestock, Forestry, Fisheries and Biosecurity, Moses Amos, said government agencies had yet to work on relevant legal provisions to cater for medical marijuana investment.

The Australian Parliament has passed legislation to allow for the cultivation of marijuana for medical or scientific purposes. This involved an amendment to the Narcotics Drugs Act 1967 and allows for cultivation through a national licensing scheme.

Pre-paid parking, multi-million plans for central Nuku’alofa upgrade revealed

New sidewalks, road and public facilities upgrades and pre-paid parking are the main focus of a multi-million dollar projects to improve central Nuku’alofa.

The projects have been given a $14 million head start for the constructions of sidewalks which connected Kolomotu’a and Fasimoeafi.

The projects included upgrades to the Queen Salote Memorial hall, Nuku’alofa Primary School, Mala’ekula Royal Tomb,  the Sports Complex and areas between Vuna and ‘Amelika wharves.

New public toilets, bus stations and bus stops were parts of the improvement plans.

An upgrade to the Tonga Maritime Poly-Technical Institute buildings and facilities was part of the plans.

A new sweeper was expected to arrive in Tonga soon as part of the government’s attempts to keep Nuku’alofa clean.

This was part of the Prime Minister’s vision to upgrade infrastructure and public facilities, the Deputy Prime Minister Hon Semisi Sika told Kaniva news.

He said the Vuna road upgrades were funded by the government through its Ministry of Infrastructure and Tourism’s budgets.

Some of these projects were expected to be funded by foreign donors, he said.

Root crop exports double in April; fish exports almost triple same time last year

Agricultural exports doubled in April, according to the latest report from the Reserve Bank of Tonga.

The bank said 642.3 tonnes of produce was exported, driven by an increase in the sale of root crops such a yam, taro and cassava.

The Governor of the Reserve Bank, Sione Ngongo Kioa, said exports of fish had almost tripled compared with the same period last year.

New data for the fisheries sector showed that exports of fish since the beginning of 2019 averaged 188 metric tons per month compared with an average of 67.2 metric tons per month in 2018.

Nearly all the exported fish were tuna, which accounted for 96.6% of the total 164.0 metric tons exported in April.

The export of aquarium products also rose by 94.7% over the month. Receipts from exports of fish and other marine products also grew by 3.6% over the same month.

Kioa said a drop in loan to the industry may indicate that activity in the secondary sector had slowed.

Loans to the construction and manufacturing sectors declined by 5.7% and 15.3% respectively.

However, container registrations rose by 7.7%, largely due to an increased volume of business containers reflecting active commercial trading.

International air arrivals also rose by 23.7% and the arrival of two cruise ships during the month may have supported the tourism sector.

Travel receipts also recorded a 1.9% increase, whereas receipts for other trades in services also increased by 19.2%, mostly transport and construction services.

Tonga’s economic growth prospects remained positive in the medium term, but weather uncertainty posed a risk.

Official foreign reserves slightly declined by $0.8 million to $464.2 million during April. The monthly movement was attributed mainly to repatriation of unspent project funds and net outflow from interbank foreign exchange deals.

The annual headline inflation slowed further to 0.2% in April

Foreign reserves were projected to remain at a comfortable level and inflation was likely to remain below the reference rate of 5% per annum. The banking system was anticipated to continue to remain sound.

The main points

  • Agricultural exports doubled in April, according to the latest report from the Reserve Bank of Tonga.
  • The bank said 642.3 tonnes of produce was exported, consisting of an driven by an increase in the sale of root crops such a yam, taro and cassava.