Tongan Government keeps quiet over reform of Public Enterprises

​The outcome of a decision by government to reduce the number of Boards that oversee the management of 14 public enterprises, from 14 boards to five or six new boards by the end of October, remains unknown.

The restructuring of the Board of Directors of government enterprises became an issue in the Tongan Parliament in early September when the Minister for Public Enterprises,Poasi Tei told the House that the directors of six enterprises has been informed to voluntarily resigned by the 30 October were:

* Tonga Broadcasting Commission

* Tonga Communications Corporation

* Tonga Post Ltd.

* Tonga Power Ltd.

 * Tonga Water Board

 * Tonga Waste Authority

The affected directors, however, could reapply to become directors of the five or six new boards, which will oversee the government's 14 Public Enterprises.

The Minister for Public Enterprises and the Prime Minister told the House that the reducing of the number of Boards to manage public enterprises would come into force by the end of October.

The government’s decision was challenged by two board directors who indicated of their intention to take government to court for the termination of contracts that they have signed with government.

There was an uproar in Parliament when the PM, ‘Akilisi Pohiva said that these boards of directors should put their legal rights aside and support the government’s restructuring program.

There was an expression of surprise by members of the House over the Prime Minister’s statement.

The other eight Public Enterprises are:

* The Friendly Islands Shipping Agency

* The Ports Authority

* Tonga Airport Ltd.

* Tonga Cable Ltd.

* Tonga Development Bank

 *Tonga Forest Products Ltd.

 * Tonga Market Ltd.

 * Tonga Assets Management

As of Monday, the Ministry of Public Enterprises has not been able to confirm if the reducing of the number of Boards from 14 to five or six boards had taken place, and who are the members of the directors of the new boards.

Since the 30 September, the only response that we have had from the Secretary of the Ministry of Public Enterprises was “that nothing has been confirmed,” and it was “best to talk to the CEO”, - but he was not in the office.