Lord Dalgety tells Ashika inquiry that he wished to resign from SCP Board [1]
Wednesday, January 20, 2010 - 20:24. Updated on Monday, May 19, 2014 - 17:13.
Lord Dalgety QC, the Company Secretary for the Shipping Corporation of Polynesia Ltd., the operator of the MV Princess Ashika, in another twist in his second day of evidence, this morning, told the Royal Commission of Inquiry into the sinking of the Ashika that he had already wished to resign from his position.
On Day 32 of the inquiry Lord Dalgety appeared for his second day of testimony into the sinking of the Ashika and was questioned by the Counsel Assisting the Commission Manuel Varitimos.
The counsel put to the witness whether it had occurred in his mind that the SCP Chairperson, namely 'Alisi Taumoepeau, and Board Director Rev Tevita Haukinima should resign, or be suspended or removed from office.
He answered "no" because he saw no reason why they should and added that he was not aware of any unfit conduct to conclude this.
However, when the counsel asked him whether he considered resigning as company secretary, he answered that he had and added that he discussed this with the chairperson and he wanted to resign but at an appropriate time.
"So you had been wishing to resign as company secretary?" asked the counsel, and the witness said "yes" but at an appropriate time because he was busy with other things like the Electricity Commission.
Suspension
On being further questioned on the suspension of John Jonesse as Managing Director, Lord Dalgety confirmed that it was the chairperson's decision to let him go.
He said the chairperson told him after the meeting she was not happy with Jonesse's performance relating to the Ashika and he had to go. He advised her that they just couldn't dismiss him but to suspend him with full pay pending investigation.
The chairperson, a director Haukinima, Lord Dalgety, SCP counsel, attended the meeting held in November 2009 and Jonesse was brought in.
Varitimos asked the witness what they told Jonesse.
The witness said Jonesse was told he was suspended due to his conduct in relation to the Ashika, which was as far as he could recall.
"So no reasonable reason was given to him?" asked Varitimos.
The witness answered that Jonesse was suspended pending investigation. There were no discussion with him in advance, and there was no reason to disagree, he added.
The counsel asked about the formation of the tribunal to investigate Jonesse and found out that the committee had, in fact, not been established.
The witness was again asked on the competence of Jonesse for the job and remained in his conviction, that at the time Jonesse was the better candidate and added that he had improved finances of the company.
The counsel also put to the witness that he asked him yesterday as to what he thought was the cause of the disaster and he answered it was the failure to conduct due diligence in its acquisition.
"And are you aware Jonesse was involved in the possible acquisition of Ashika?" he said "yes" because he was asked by the purchasers (Government) to assist them.
"But the SCP operated the vessel until it sank?" asked the counsel, and the witness agreed.
The counsel suggested to Lord Dalgety that the competency of Jonesse was in question in terms of the possible cause of the disaster. The witness paused and said "yes", considering that information was not made known to them in relation to the state of the vessel, the work done, the defect list and whether the vessel was suitable for Tonga.
He was asked whether they considered it was important to operate a vessel that was safe.
The witness said safety matters were raised.
But that was not recorded in the minutes, said the counsel.
The witness answered there were many discussions around the table and general statements made but were not recorded.
"But you kept and prepared the minutes?" said the counsel.
Minutes
The commission who was only submitted one single certified minute of directors meeting presumably held on March 19, 2009 and the only one signed by Dalgety on the following day under seal. It was then confirmed that there was no meeting on March 19 but was on March 17.
It was put to him that if he in fact prepared the minute on March 20 it would have been obvious that he made a mistake, he said this was simply an error in the date but the important thing was the meeting took place in March and he did not pick up the error.
KPMG Audited SCP in September 2008 and Lord Dalgety who was on the Audit Committee was given the Audit Report that morning. He admitted to the inquiry that this was the first time he saw the report.
Varitimos who was puzzled by his comment asked, "how does a member of an audit committee come to have not seen the audit document?" The report raised concerns over SCP tax returns that were not lodged as required and which, in fact, incurred a magnitude of penalty.
Good Governance
It was also established that in 2005 in the sale of the Government of Tonga vessel the Fua Kavenga I, renamed Golden Trader operated by Shipping Corporation, the witness made overseas travel on its sale.
The financial report of SCP showed the witness travelled to Singapore and Dubai for total of (66) days and was paid over USD$600 per day.
On being questioned on this payment he answered, "that's what is said." He also confirmed travelling first class and affirmed this as a habit since his late 20's. He also confirmed staying in five star hotels.
Varitimos put to him that he was not required to go to Singapore and Dubai and it was a waste of public expenditure and someone could have done it for a fraction of what he was paid for. But Lord Dalgety simply answered that he does not know that.