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Tonga must avoid wage increases and spending too much on South Pacific Games, says IMF

By
Kalino Latu
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The International Monetary Fund has warned the Tongan government not to raise wages and to keep an eye on costs during the South Pacific Games.

An IMF team visited the kingdom in February and met with Prime Minister ‘Akilisi Pohiva, Finance Minister Dr ‘Aisake Valu Eke, the Governor of the National Reserve Bank of Tonga Dr. Sione Ngongo Kioa, senior government officials and business representatives.

In a statement released after the visit, IMF team leader Yasuhisa Ojima said Tonga needed to “closely control the spending programme for the South Pacific Games to avoid any potential cost overruns” while it struggled to maintain a sustainable economy.

According to Ojima, Tonga’s economy grew by about two percent in the financial year ending in June 2014, largely driven by agriculture and construction. This followed a contraction in the previous financial year caused by the completion of a large capital project.

However, Ojima warned that lifting the kingdom’s potential growth was a key challenge.

He said the country’s Strategic Development Framework would play an important role in making growth more sustainable.

Structural reforms would be important to supporting the private sector and raising the possibility of financial growth.

The IMF has recommended revising the Foreign Investment Act as part of these reforms.

In the meantime, grants and remittances have bolstered the country’s financial reserves and inflation has been kept down.

“Inflation has remained moderate at around zero to three percent in recent years, reflecting low global food prices and, more recently, a sharp decline in oil prices,” Ojima said.

The Tongan government would face financial pressure due to the reconstruction in the wake of Cyclone Ian and demands for wage increases for civil servants.

However, while the kingdom would continue to face challenges, Ojima said there had been progress in some areas, notably in “improving commercial banks’ balance sheets and strengthening the legal framework of the financial sector.”

“The IMF will continue to support Tonga’s reform efforts by providing technical assistance in the areas of public financial management, banking regulation and supervision and macroeconomic statistics,” Ojima said.

The main points

  • The International Monetary Fund has warned the Tongan government not to increase wages and to keep an eye on costs during the South Pacific Games.
  • The IMF said the kingdom needed to “closely control the spending programme for the South Pacific Games to avoid any potential cost overruns” while it struggled to maintain a sustainable economy.
  • It said the Tongan government would face financial pressure due to the reconstruction in the wake of Cyclone Ian and demands for wage increases for civil servants.
  • However, while the kingdom would continue to face challenges, there had been progress in some areas, notably in “improving commercial banks’ balance sheets and strengthening the legal framework of the financial sector.”

For more information                                                                                                  

‘IMF Staff Concludes 2015 Article IV Mission to the Kingdom of Tonga’ (IMF)

Dr Palenitina Langaʻoi appointed Tonga’s Chief Secretary and secretary to cabinet

By
Alpha Latu
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The Tongan government has appointed Dr Pelenatina Langa’oi as the Chief Secretary and Secretary to cabinet.

This was announced by Prime Minister ‘Akilisi Pohiva yesterday in a Party meeting attended by some of the cabinet ministers and Party members, a spokesperson for Tonga’s Democratic Party, Kulufeinga ‘Anisi Bloomfield said.

The announcement of Dr Langa’oi’s appointment came after a decision by a panel to recommend her to the post earlier last month was withheld after the Prime Minister received a complaint in relation to the recruiting process.

Tonga declares March 2 a public holiday in honour of Cardinal Mafi

By
Kaniva Pacific
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The Tongan government has declared Monday 2, March as a national public holiday in honour of Cardinal Soane Patita Paini Mafi.

Cardinal Mafi was the first Tongan priest in the Diocese of Tonga and Niue to be elevated to the cardinalate in February 15. Cardinal Mafi is eligible to take part in the election the next Pope.

In a statement from the government it said: “Embracing the Moral Legitimacy of the Kingdom of Tonga being a Christian Nation, and indeed the appointment of first Tongan National as Catholic Cardinal, the Office of the Prime Minister is pleased to inform the public, and the people of Tonga that the Cabinet approved the declaration of Public Holiday to the entirety of the Kingdom of Tonga, and to be held on Monday 2nd of March2015.

“As per the Cabinet decision concerned, Monday the 2nd March 2015 shall be declared a National Public Holiday, and that the services of the Government of Tonga shall be closed to the Public in this respect. This special decision is a one-off, which is based on the honoring of the appointment of His Eminence Cardinal Soane Patita Mafi to the College of Cardinals of the Roman Catholic Church”.

“Meet the Mormon” a movie for all Tongans

By
Kaniva Pacific
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A film that featured experiences of six Mormon members around the world in an attempt by filmmakers to depict the challenges church members met because of their religious faith has been recommended as a film for all families in Tonga.

The film, which was first released in the United States on October, 10, 2014, centred on the actors and actresses and how they went about trying to overcome the type of “challenging stereotypes that surround the Mormon faith”.

People who have watched the movie in Tonga since last week shared their approval and admiration with the mormonnewsroom.org.nz.

Akanesi Taufa & Lilika Sailosi from the Prime Minister’s Office both said they enjoyed the movie. “it is a movie for the whole family, I can’t wait to watch it again with them,” the website reports.

Local business owner Robina Nakau smiled as she commented, “I was in tears at the end. Thank you for inviting me. I enjoyed the movie and think every family in Tonga should watch it.”

Sione Taumoefolau, Director of Tonga Red Cross, called Meet the Mormons “a great movie.”

“I’m happy I decided to come to the premiere.”

Halaliku Stake President for The Church of Jesus Christ of Latter-day Saints, Sateki Manakofua, said, “I hope we can get all of Tonga to see the movie. It’s a great movie for the whole family.”

Tonga’s TP$233.3 million debt to China won’t go away, says Prime Minister

By
Kalino Latu
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The Tongan government owes China TP233.3 million and Prime Minister ‘Akilisi Pōhiva has warned that China will not forgive the debt.

And Hon Pōhiva has accused the former government of Lord Sevele of borrowing heavily from China because they  believed China would write off the debt.

Tonga’s debt position was revealed in a recently released Ministry of Finance  statement which says total public debt in January this year was  estimated  at TP$392.6m. Of this, TP$361m was owed to foreign creditors, including  TP$233.3m to China’s Export-Import (EXIM) Bank.

The government owes the Chinese bank TP$138.9m for a loan it took out for the reconstruction of Nuku’alofa after the 2006 riots. It also owes the bank $91.8 million for funding a road project and TP$2.6m owed for the money it borrowed for the Dateline Hotel project.

The Ministry said some of the Chinese money it lent to local borrowers for the reconstruction was handed over without the borrowers having signed any repayment documents.

One of the companies involved is owned by former Prime Minister Lord Sevele.

The Ministry of Finance said Tonga’s second largest creditor was the Asian Development Bank, to which  it owed TP$60.8m and the IDA, to which it owed $50.6m.

The main currencies in which debt is owed are the Chinese  Yuan  at TP $241.2.m  (66.7% of the total debt)  and  TP$119.7 (33.1% of the total debt) in Special  Drawing  Rights. SDRs are a financial mechanism created by the International Monetary Fund.

About TP$51.5m of the borrowed money has been re-lent to businesses in Tonga.

The kingdom’s domestic debt is estimated at TP$30.98m for Government bonds.  A total of TP$19.2m of the bonds are held by financial institutions at $19.2m, while the Retirement Fund Board holds $7.6m worth of bonds.

The government lent TP$42.9m for the rebuilding of the capital’s central business district. About a quarter of the repayments of these loans are in arrears. Companies currently owing money include:

  • Sea Star TP$6.3m
  • G.Sanft Ltd TP$1.04m
  • Taumoepeau Ltd TP$720,000
  • Tungi Colonnade Ltd TP$410,000
  • City Assets Ltd TP$340,000
  • Royco Ltd TP$55,000

The Ministry said Royco, O.G.Sanft, Taumoepeau and Tungi Colonnade had now signed loan agreements. At the time the ministry’s report was published, City Assets Ltd, owned by former Prime Minister Lord Sevele, had not signed a loan repayment agreement.

The Ministry of Finance said only Royco Building was re-paying the money it had borrowed satisfactorily.

Vuna Wharf was also rebuilt from the Chinese loan, even though it was not damaged in the 2006 riots. The Finance Ministry said the  Ports Authority of Tonga was now considering the loan agreement with Government.

No Write-off

Prime Minister ‘Akilisi Pohiva told an audience in Auckland earlier this month the Chinese government would not write off Tonga’s loan for the reconstruction of Nuku’alofa.

Hon. Pohiva said the government of Lord Sevele decided to borrow the money thinking the Chinese government would eventually write it off.

Hon. Pohiva told the audience it was clear now China would not in any way write it off.

The Prime Minister said this was because many other countries had loans from China and if China wrote off Tonga’s loan it would have to write off other countries’ loans as well.

He said two different team of delegates from Tonga were sent by the former government to China in a bid to write off the loan, but to no avail.

“What happens now for the loan from China is we have to stay with it,” the Prime Minister said.

“Just leave it as it is and let’s see.”

Hon Pohiva’s government has said it would create policies to strengthen overseas remittances and avoid borrowing any more money while it tried to pay off its debts.

The main points

  • The Tongan government owes China TP233.3 million and Prime Minister ‘Akilisi Pohiva has warned that China will not forgive the debt.
  • And Hon Pohiva has accused the former government of Lord Sevele of borrowing heavily from China because they believed China would write off the debt.
  • The level of the kingdom’s indebtedness was revealed in a recent Ministry of Finance statement, which showed that total public debt was  estimated  at TP$392.6m.
  • The Ministry said some of the Chinese money was re-lent to local borrowers without them signing any repayment documents.

For more information

Ministry of Finance

Chinese Export-Import Bank

Cruise ships visits bring 2,000 tourists to Nuku’alofa

By
Kaniva Pacific
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The arrivals of two cruise ships, the Queen Elizabeth  from England and the Asuka II from Japan, in Nuku’alofa today have brought smiles to thousands of local tourist business operators and locals.

The tourists were welcomed at Tonga’s largest wharves, Vuna and Kuini Salote with dozens of Tongan group dances as well as hundreds who were in Nuku’alofa to watch the liners.

This was the first time the MS Asuka II visited Tonga after two agents from the Japanese liner company were in the kingdom in May last year to look at the wharf in preparation for the visit.

Both liners left Nuku’aofa this evening with MS Queen Elizabeth  heading to Auckland.

Prime Minister 'Akilisi Pohiva interviewed by Forbes

By
Alpha Latu
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Two representatives from Forbes News Magazine arrived in Tonga to interview Prime Minister Akilisi Pōhiva as part of a story to be featured in the international magazine this year.

The interview was conducted at the Prime Minister’s office on Wednesday 11 February.

A statement from the Prime Ministerʻs Office said, “The nomination however, was based on two magnificent milestones within the history of Tonga. First, the appointment of the Hon. Prime Minister of Tonga, and his being instrumental in architecting the strive towards a democratically-elected system of government, and it has been ongoing for several decades to date. Second, the upcoming Coronation of His Majesty, King Tupou VI, in July 2015, which can be regarded a double welcome-blessings for tourism industry as well as other sectors of Tongan economy.

Highlighting only two of the key questions and answers raised at this session are stated accordingly.

Forbes: Keeping in mind that Forbes readers are international well-established investors, what are the key points that make your country stand out from its neighbors?

PM: I think the simplicity of our society makes Tonga more attractive for people who live in very complex, busy and sophisticated lifestyles in many developed countries would be attractive to their interests. And it may be because they could see Tonga a safer and more peaceful destination to take.
Further, the friendliness of the people and their closeness to nature, such as the ongoing and active promotion of eco-tourism in our society, subsistence economy and lifestyles of people in the locality of the communities would also contribute.

Forbes: How would you like to see your country when you leave the office?
PM: I sincerely hope they would continue to live within the means of what is available. It is unfortunate that we have been relying on remittances for so long and seem to have lost the sense of self-reliance. And similar to that, we have been seeking the assistance of donor countries, in terms of budget constraints for some times, which is also not good. However, I believe we have reasonable resources, and we are to learn how to live within the boundary of our financial capacity. I want to see Tonga be satisfied with what it has in order to be self-sufficient.
The two representatives from Forbes left the country on Thursday 19th February, after spending more than a week collating information for this very significant project. According to Forbes representatives, it is expected they would complete the assignment by late March, and is timely for distribution before the Coronation.

Tonga’s Police Minister chooses not to interfere while police officer tickets his daughter

By
Kaniva Pacific
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A daughter of Tonga’s Police Minister Hon. Pōhiva Tuʻiʻonetoa, signalled for him to intervene when a police officer issued her with a speeding ticket but the minister chose not to.

Hon. Tuʻiʻonetoa and his family were on their way back home from Nukuʻalofa early this month when a Police officer stopped their car at Tufumāhina.

The driver of the car was Hon. Tuʻiʻonetoa’s daughter.

The minister told Tonga Weekly newspaper he was in the front seat sitting beside the driver. He said he could tell how his daughter reacted signalling for him to talk to the officer when he began questioning her.

Hon. Tuʻiʻonetoa said he did not want to interfere with his Police officer’s work and he appreciated what he was doing.

Hon. Tuʻiʻonetoa told the paper he was happy the incident happened to him and his family so it could send a message to everyone in his Ministry of Police no one was above the law.

The minister said he understood the Police officer did not know him and he and his family were not using the ministerial vehicle because they were not allowed to use it if it was for personal matters.

Hon, Tuʻiʻonetoa said the new government was in the process of trying to win back public trusts in the Ministry of Police and he as the head of the ministry must show the example.

Police car stoned in Nuku'alofa

By
Alpha Latu
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A Police car was stoned by students when Police arrived to break up a fight in Nuku’alofa last Saturday.

Two students arrested in relation to damaging of Police car while investigation was ongoing.

Police received a report that groups of students from Liahona and Tonga College each met at one of the bus stations in Nukuʻalofa.

No fight broke out and Tonga college students were escorted by police back home while Liahona students were kept at Central Police in Nukuʻalofa before releasing.

Struggles of hou’eiki fafine in new homeland inspires groundbreaking work by Tongan student

By
Kalino Latu
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The struggles and successes of Tongan women who  moved overseas to make  new lives in different countries has inspired a Tongan student at Auckland University of Technology to create groundbreaking art.

It has also won her a PhD from AUT.

According to a report by Ariana Adam released by AUT-based Pacific Media Watch, Talita Toluta’u has become “the first Pacific woman graphic designer in the world to have achieved a PhD with a practice led thesis.”

Tolutaʻu’s work includes a number of two metre-long paintings and three sets of projected images.

The overall title of her work was ‘Veitalatala: Matanga ‘oe Talanoa.’

The work is centred on the lives of three Tongan woman who left the kingdom and settled overseas

The three women were Lesini Finau Vakalahi, Senolita Vatuvei Afemui and Telesia Tonga.

According to the Pacific Media Watch story, the women  struggled to fit into their new homeland.

Talita Toluta’u told writer Ariana Adam her exposure to both Tongan and western cultures helped her bring together different aspects of her life and blend spiritual and academic ideas into her work.

“As I matured, the Tongan voices of the hou’eiki fafine in my community permeated my ways of thinking. They caused me to reach for understanding by listening, feeling, learning and luva,” she said.

“Their talanoa has shaped my understanding of culture in profound ways because my personal growth and cultural identity was (and remains) intrinsically connected to their past experiences.

“The stories of migration that they told me as a child were not like those written in my social studies books. Nor were they like the representations of Tongan people portrayed on the news items that flickered occasionally over the television set.

“They were something different. Their talanoa is full of laughter, sadness, detail, memory and loss. There are secrets alluded to, and experiences of something missing. The spaces between what they say and the distinctive ways that their recollections reconstitute time are as important as what is recounted.”

The main points

  • The struggles and successes of Tongan women who moved overseas to make  new lives in different countries have inspired a Tongan student at Auckland University of Technology to create groundbreaking art.
  • It has also won her a PhD from AUT.
  • The overall title of her work was ‘Veitalatala: Matanga ‘oe Talanoa.’
  • The three women were Lesini Finau Vakalahi, Senolita Vatuvei Afemui and Telesia Tonga.

For more information:

‘Tonga: Artist’s innovations win world’s first Pacific woman practice-led PhD’ (Pacific Media Watch/AUT – contains details of one of her works of art)

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