Tonga to corporatise Printing and Post Offices [1]
Tuesday, October 26, 2004 - 15:15. Updated on Thursday, May 8, 2014 - 14:03.
The Tonga Government Printing Department and the Post Office will become corporatised bodies in January 2005, according to the Acting Deputy Secretary of the Public Enterprise Division of the Ministry of Finance, Henry Cocker.
Henry said that in January each entity will cease being government departments and become corporatised bodies administered by their own boards of directors.
He said that the directors of the boards will be appointed by Cabinet and, "they will be responsible for the operation and making sure that there is profit coming in".
Henry said it was absolutely essential for Board Directors, "to have a clear understanding of financial analysis and legal understanding of legal issues like the Company Act and the Public Enterprise Act."
Henry said that after one or two years of operation, government being the sole shareholders in the two corporatised bodies may then decide, to sell its shares, and allow the business to be run by the private sector, "at the same time ensuring that it continues to employ the Tongan people and still provide the service for the public."
Henry said that in preparation for the big change-over at the moment a steering committee had been set up at the Printing Department, to help the CEO, Takitoa Taumoepeau, to design a financial system and to identify stakeholders as well as assisting while they are in the process of corporatisation. The Post office on the other hand needed a proper framework in place and a new Post Office legislation was being drafted.