By Katalina Siasau
The Cabinet yesterday approved Lulutai Airlines Limited to become a public enterprise, Prime Minister Hon. Hu’akavameiliku told a media briefing today, at St. George Government building.
PM said the reason for this decision was because the government “had nothing to hide”, in handling the airline.
He said that conversations surrounding the Lulutai Airlines seemed as if there was some government secrecy.
“Cabinet then decided, Lulutai will be a public enterprise to prove there is nothing to hide.”
Lulutai Airlines Ltd. was first registered as a company on 28 May 2020 with the Government of Tonga as its sole shareholder. Questions had been raised as to why the Lulutai Airlines Ltd., formed in was being operated like a private company, and not listed as a public enterprise.
A new minority shareholder, the Retirement Fund Board, purchased a new share issue in August 2023.
The Prime Minister is Chairman of the airline's Board.
Six months ago he wanted to sell the airline.
In May, the Prime Minister said the Government intended to keep running the Lulutai Airlines Ltd., until they could find someone to buy them out and take over the operation of the domestic airline.
He made the comments following the King's speech on the closing of the 2023-24 session of Parliament on 2 May, when the King questioned the Government's secrecy in running the airline, instead of recruiting experts in civil aviation.
Tonga has 12 Public Enterprises (PEs) that are actively engaged in a range of commercial activities including utilities, transport, and communications.
National university campus
At the media briefing today, the Prime Minister also talked about the Tonga National University (TNU) and other matters.
The government is planning to build a modern style campus for the national university, with support from China.
He said they are currently working together with China to look at areas for the campus and its facilities, which also includes sporting facilities with swimming pool. He said 70 acres of land is required.
Meanwhile, he said the university's campus would be able to host the 2031 Pacific Games.
Vava'u hospital
The World Bank has approved the funding of USD$30 million to build a new hospital in Vava'u, with additional USD$6 million financial aid from the Government of Australia, he announced.
The fund for the new Vava'u Hospital stands at around TOP$80 million.
NRBF bought Paradise International Hotel
Tonga's National Retirement Benefits Fund has bought the Paradise International Hotel in Neiafu, Vava'u, PM revealed.
He said it is an investment of the National Retirement Benefits Fund to buy and develop the hotel.
"There's a lot of potential from the tourism in Vava'u but there's lack of accommodation," he said.
