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Asian Development Bank forecasts Tonga will face higher inflation in 2019

By
Philip Cass
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The Asian Development Bank has predicted that inflation will rise in Tonga during 2019 because of lingering effects from Cyclone Gita and higher fuel prices.

Overall economic activity was expected to pick up in the first half of the 2019 fiscal year.

Recovery would be driven primarily by government-led cyclone reconstruction and supported by strong growth in private credit, which will spur activity in various sectors of the economy.

However, government reconstruction and rehabilitation projects would shrink the budget surplus in 2019.

The higher volume of imports needed for the projects would increase the budget deficit.

Government finances would also be affected by its intention to start repaying a large loan from China.

The Asian Development Outlook 2018 Update said Government revenue increased only slightly from the 2017 fiscal year as a substantial contraction in grants offset higher tax revenue.

Increased spending driven by higher public sector wages, initial reconstruction expenses, and the maintenance of existing infrastructure is estimated to have narrowed the budget surplus.

Despite this, Tonga’s current account was estimated to have recorded a small surprise surplus derived from higher than expected tourism income and emergency assistance following Cyclone Gita.

For more information

Asian Development Outlook 2018 Update

Biogas generators could help bring down electricity costs say visiting German scientists

By
Philip Cass
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Recycling plant and animal waste to generate electricity could replace diesel power in Tonga, according to a visiting group of German scientists.

The German team, from Trier University of Applied Sciences, said biogas generation using waste material could immediately bring down the cost of generating power.

According to Tonga Power Ltd, more than 91% of Tonga’s electricity consumption is supplied by generators fuelled with imported diesel.

The government plans to generate half its power from renewable sources by 2020.

Biogas generation using waste material is already used to generate some household power in Tonga. In Germany it is used on an industrial scale, with 10,000 generators operating.

Most renewable energy developments in Tonga and the Pacific Islands are based on solar and wind energy, which can be affected by cloud cover and a drop in wind speed.

The German team said that it implemented properly, biogas generation created  circular economy in which there was no waste

The biomass generator could also produce organic fertiliser.

It said saafa grass could be harvested and used in the biogas process.

Tonga’s Energy Minister, Hon. Poasi Tei, recently led a Pacific delegation to see how biogas was used in Germany.

“We are looking for a technology that would immediately lower the costs of power generation and be sustainable in the long term,” Hon. Tei said.

The German team was in Tonga as part of a visit organised by the Pacific Community’s Centre for Renewable Energy and Energy Efficiency.

They will return to the kingdom in Tonga to hold talks with the government.

Wind plant

Meanwhile, a Japanese-funded windmill is expected to supplying six percent of the kingdom’s renewable energy by June next year.

King Tupou VI recently launched construction of the wind power generator at a ground breaking ceremony at Niutoua.

The windmill is a joint project with the Japanese International Co-operation Agency (JICA

The main points

  • Recycling plant and animal waste to generate electricity could replace diesel power in Tonga, according to a visiting group of German scientists.
  • The German team, from Trier University of Applied Sciences, said biogas generation using waste material could immediately bring down the cost of generating power.
  • According to Tonga Power Ltd, more than 91% of Tonga’s electricity consumption is supplied by generators fuelled with imported diesel.

For more information

Tonga exploring cheaper and sustainable electricity

‘Trash is gold’ as Benin community turns waste into biogas

Japanese International Co-operation Agency 

Exchange rates caused $74m loss; Tongasat payments unlawful, says Tu‘i‘onetoa

By
Kalino Latu
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A TP$74 million government loss in the Auditor General’s report to Parliament last week on the government’s 2017 accounts was caused by the high foreign exchange rates, Minister of Finance Pōhiva Tu’i’onetoa said.

Hon. Tu’i’onetoa, a former auditor general, said the loss could become a profit next year if the Tongan currency traded more strongly against foreign currencies.

The $74 million was the total amount of loss after the government’s assets and liabilities which were in foreign denominations had been exchanged into Tongan pa’anga.

The Minister was responding after Opposition MPs blamed the government for the loss.

The TP$74 million loss has become a weapon for anti-government elements who have claimed the ‘Akilisi Pōhiva government abused its financial responsibilities.

They have attacked the government in the wake of the Supreme Court’s ruling that the payment of TP$90 million to Princess Pilolevu’s Satellite company was illegal.

“No one in the ‘Akilisi Pōhiva government misappropriated the TP$74 million,” the Minister said.

Auditor’s report

Hon. Tu’i’onetoa said when the Auditor General made his annual report on government assets and liabilities their values must be in Tongan pa’anga.

This included local loans, international loans, cash on hand and at banks and all other investments.

Some of these liabilities and assets were in foreign denominations, including bank accounts which were kept in US dollars, the Minister said.

The exchange from foreign currencies into Tongan pa’anga could either generate losses or profits depending on the exchange rates for those currencies.

Examples

Hon. Tu’i’onetoa gave Kaniva News examples.

He said if Tonga borrowed US$10 million on 30 June 2016 at an exchange rate of TP$1.50 to the US dollar this would appear on the auditor’s report for the first time on June 30, 2016 as a liability of TP$15 million.

If by June 30, 2017 this loan had not been paid and the US exchange rates increased from US$1.5 to US$2.5 the loan would be recorded in the government’s balance sheet as TP$25 million.

This meant, the US$10 million borrowed on 30 June 2016 had become US$25 million on June 30,  2017, a difference of $10 million.

The minister said this was called Foreign Exchange Risk Exposure or loss.

If Tonga wanted to pay its US$10 million loan while the rate was US$2.5 it had to pay $25 million.

Hon. Tu’i’onetoa said this was why the TP$74 million appeared on the auditor’s report.

“It was just a loss caused by the fluctuation of foreign and Tongan exchange rates.”

Tongasat unlawful payments

The TP$74 million appeared on the Auditor General’s report on June 2017 and the TP$90 million transferred to Tongasat, which was first reported by the Auditor General in 2013, were absolutely different in nature, the Minister said.

“The TP$90 million paid by the two former Prime Ministers to Tongasat were made unlawfully and without Cabinet’s knowledge,” he said in Tongan.

He said the TP$90 million paid to Tongasat was apparently paid secretly.

If the Tongan currency had been stronger, the TP$74 million loss could have become a profit.

The Minister said the TP$74 million had yet to be paid.

It was an adjustment made so the auditor could create a balance sheet based on Tonga’s own currency.

The main points

  • A TP$74 million government loss in the Auditor General’s report to Parliament last week on the government’s 2017 accounts was caused by the high foreign exchange rates, Minister of Finance Pōhiva Tu’i’onetoa said.
  • Tu’i’onetoa, a former Auditor General, said the loss could become a profit next year if the Tongan currency traded more strongly against foreign currencies.

For more information

Petition to sue former PMs involved in Tongasat payment

Police investigating after items worth tens of thousands stolen in Nuku’alofa

By
Kalino Latu
-

Police in Tonga were searching for information related to burglaries that occurred in two separate incidents in Nuku’alofa.

Various goods and items valued at around TP$20,400 were allegedly stolen at the Langafonua ‘a Fafine Tonga centre last month, local news media have reported.

On a separate incident, goods valued at around $19,580 were allegedly stolen from a home in Hala’ovave. .

A 47-year-old woman complaint to Police after she found out her goods had been missing either in August or September.

Police were investigating the incidents.

Man found dead in alleged suicide

By
Kalino Latu
-

A 30-year-old man was found dead in his home in Vainī, local news media have reported this week.

They said Police attended the incident on September 24 and allegedly ruled the cause of death was suicide.

The man’s body was found in his room.

No other details were immediately available.

Car crashes into house in south Nuku’alofa

By
Kaniva Staff
-

A car has crashed into a house at Tofoa.

A source said he was aware of the incident and it was occurred on Sunday.

Photos uploaded to Facebook showed a car had crashed into the front door of a house.

There was no report of injuries.

Queen Elizabeth jokes about struggling to sit cross-legged on her 1953 Tonga visit

By
Kaniva Staff
-

In the concluding episode of Queen of the World, which explores Her Majesty’s role as head of the Commonwealth as she gradually passes the baton to younger members of the royal family, she reflects on her visit as a 27-year-old newly anointed monarch, and recalls finding it difficult to sit cross-legged, as is the custom in Tonga.

‘It’s quite painful for people who are not built in the same direction,’ the Queen quips during a meeting with Elizabeth Kite, a women’s activist from Tonga and a winner of a Queen’s Young Leaders Award.

The Queen also recalls the sound of nose flutes being played outside her window on the visit, which she describes as ‘just the most extraordinary thing’.

The Queen jokes in a new ITV documentary that sitting cross-legged for long periods proved rather ‘painful’ during her 1953 visit to Tonga, on her Commonwealth tour with Prince Phillip

In the concluding episode of the two-part ITV documentary Queen of the World, Her Majesty reflects on her visit to Tonga with the Duke of Edinburgh 65 years ago, in a meeting with a young women’s rights activist from the country, Elizabeth Kite

The Queen was welcomed to Tonga in 1953 by Queen Salote, who held a great open-air feast in her honour, where guests sat cross-legged around long, low tables.

The monarch, who has been head of state for 66 years, also talks of how she has met an ‘awful lot of people’ in her role.

She says of Tonga: ‘I haven’t met the new (king).

‘But, you see, I haven’t been for such a long time. I’ve met an awful lot of people.’

The clip also shows the Queen taking charge and making sure everything is running smoothly for the audience with the Queen’s Young Leaders, by directing a member of staff to open a door.

‘Can you open it? No, no this door – push it, push it open, thank you. Otherwise they can’t get in!’ she says with a smile.

On another occasion, she is shown helping the Governor General of Papua New Guinea after knighting him, directing him: ‘Turn around the other way, because that’s where the cameras are.’

The Queen recalled the sound of nose flutes being played outside her window on her visit to Tonga in 1953, which she described as ‘just the most extraordinary thing’

Elizabeth Kite, seen centre, told the cameras she was ‘extremely nervous’ ahead of her audience with the Queen, but afterwards said their meeting was proof ‘anything is possible’

Miss Kite, who was named after the Queen, confessed to being ‘extremely nervous’ ahead of her meeting with the monarch, but said afterwards it was proof that ‘anything is possible’.

‘I just had a chat with the Queen,’ she says after leaving the room. ‘I’m going to wake up tomorrow and feel, like, did that happen? I don’t quite know…

‘Honestly anything really is possible. Whatever it is you dream to be you can actually achieve.’

Queen Salote of Tonga is seen greeting Queen Elizabeth and the Duke of Edinburgh during their 1953 Commonwealth Tour. Her Majesty reflects on the visit in a scene from ITV’s Queen of the World documentary, the second part of which airs tonight.

Man charged with murder of ‘Eua man to appear in court

By
Kalino Latu
-

A man will appear in court next week charged with murdering ‘Eua man Police said he was living in Tofoa before the incident occurred

The 40-year-old victim from ‘Ēsia was rushed to hospital from outside a bar and restaurant in Nuku’alofa in August 23. He died on Friday last week.

The 20-year-old accused was arrested in Tongatapu last week, according to Police.

He was charged with causing grievous bodily harm.

He remained in Police custody to appear in court on Monday, October 8.

The names of the victim and the accused had not been released.

Kangaroos captain Inglis suspended for test against Tonga over drink driving

By
Kalino Latu
-

NRL Media Release

Greg Inglis will miss the Kangaroos’ matches against New Zealand and Tonga after being suspended for two games today.

Australian Coach Mal Meninga and NRL CEO Todd Greenberg agreed on the sanction after the Australian captain was charged with drink driving and speeding yesterday.

They said it was important to uphold the principles of the RISE values (Respect, Inspire, Selfless, Excellence), adopted by the Kangaroos.

Inglis, who today apologised for the breach, said he accepted the decision.

“I know I did the wrong thing and, while I am disappointed at missing the tour, I accept the penalty,” he said.

Mr Greenberg said it was a difficult decision to suspend Inglis who had such an exemplary record over a long period of time.

“Greg is not just a great player, he is one of our best role models, but he made a poor decision on this occasion,” he said.

“He deserves full credit for being upfront today by apologising and taking full ownership of his mistake.

“It is a mark of the man that he has accepted responsibility for his actions and I have no doubt he will overcome this setback and retain his status as a true leader in our game.

Mr Meninga said Inglis would be welcomed back into the Kangaroos by his team mates and management.

“I hope to see him back in a Kangaroos jersey next year,” he said.

“Greg has been an integral part of the team for many years and I expect him to be back.”

Mal said the RISE values were important in ensuring players recognised the need to do the right thing on and off the field.

“No one respects those values more than Greg and we look forward to him returning to the team next year.

“Greg was in fact an integral part of the creation of the RISE values.

“As a result he’s accepted the penalty and I think he has shown real leadership by the way he has been accountable for his actions.”

Tongan Youth Parliament to convene for first time since start of political reform era

By
Kaniva Staff
-

Tonga’s first Youth Parliament in a decade will convene next month.

The Speaker of Parliament, Lord Fakafanua, said the Youth Parliament was intended to develop an interest in political processes among young people and encourage them to take part.

“This much anticipated event will be the first in Tonga’s post-reform era since 2010,” the Speaker said.

“These reforms have been a pivotal moment in Tonga’s political history and have set the compass for tomorrow’s generations.

“If there was ever an opportune time to host this significant event, now would be that time.

“It is testament to the Legislative Assembly’s commitment to youth empowerment, leadership, education and providing a unique platform where the voice of our young people and our youth can be heard.”

Lord Fakafanua said it was hoped the Youth Parliament would increase young people’s awareness of how Parliament works and how they could contribute to decision making.

It would provide an opportunity for young people learn about the concepts of democracy, good governance, transparency and accountability.

He said it would also help them develop leadership skills.

“It will motivate our youth to become leaders and to build their confidence to contribute to the well-being of their homes, schools, churches and communities,” the Speaker said.

About 100 young people attended the launch at the Tonga National Centre.

The theme of the launch was ‘Our Parliament – Bringing Parliament to You.’

The main points

  • Tonga’s first Youth Parliament in a decade will convene next month.
  • The Speaker of Parliament, Lord Fakafanua, said the Youth Parliament was intended to develop an interest in political processes among young people.
  • “This much anticipated event will be the first in Tonga’s post-reform era since 2010,” the Speaker said.

For more information

Youth Parliament Public Awareness Programme 2018 officially launched

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