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Home > Shoreline: acquisition or legalized theft?

Shoreline: acquisition or legalized theft? [1]

Moss Beach-California, USA

Sunday, April 16, 2006 - 17:45.  Updated on Monday, December 16, 2013 - 22:43.

Editor,

Shoreline's recent announcement for sale is one of the intense climacterics of the moral, economic and political hardships and factions in the Kingdom. There is scuttlebutt that Shoreline's undisclosed multi-million dollar sales price is approximately T$60 Million and prior to Prince Lavaka's resignation as Prime Minister, Crown Prince Tupouto'a and members of the royal family were in favor of a T$100 Million loan from China to facilitate the purchase of Shoreline resulting in a royal dispute and subsequently Lavaka's resignation.

The government and Shoreline are now orchestrating the best ownership structure for Tonga's only electrical company. The people have a right to question the fundamental assault and merit of this acquisition on its morality, economic and political nature and justice. Government and the people should also observe Shoreline's usual formalities of perfidy before they fall prostrate under a potential hemorrhaging business deal. Will the government's action be just and will they be doing it for the right reason and for the sake of the people?

It is important that Government should not be in such a mad rush to acquire Shoreline at its asking sales price without validating its debts, value, worth and benefit to the nation. While Government is carefully weighing all the options and boldly evaluating Shoreline's business proposition, Government should start regulating and monitoring the operation of Shoreline in order to put together a comprehensive assessment and account of Shoreline's value and worth. Government should also allow competitive bidding of Shoreline in order to establish the best and competitive price. Whether Government elects to match the highest bidder or allow Shoreline to be acquired by other investor(s), Government should continue with tighter regulation and close monitoring of the company's business operation and dealings irrespective of present and future ownership.

Quoted from the Matangi Tonga ...…"Having completed significant investment and modernization of the generation and distribution of power throughout the Kingdom...…I now believe that the time is right for ownership and management to be passed back to the Government and a strong partner with relevant expertise in managing and operating electricity assets," Tupouto'a said. Shoreline might as well get away with murder if this is their selling and marketing pitch because what has been declared here is a cloak of false financial, operational and functional security.

Modernization and upgrading of existing system as we define in the industry is implementation of new and state of the art system that will significantly reduce operating cost with optimal energy efficient. Shoreline's modernization and ownership of the electrical company has the opposite effect resulting in the people being charged with a monthly electrical bill that insanely and inexplicably exceeds their monthly income. To make matters worse, Government has not conducted good business sense and practice with Shoreline because they have neglected to regulate Shoreline business dealings in order to better understand Shoreline's claim to high operating cost. Both Shoreline and Goverment fail to provide resolution to minimizing the severe financial impact it has on the people.

Tonga has an economist as PM and there are also many other economists working in various ministries, so how do these economists approach economic development overall for Tonga? If Government is seriously considering acquiring Shoreline as an economic development without due diligence, this action can potentially be a major cost to and extreme hardship on Government and the people of Tonga rather than an investment. Any moral human being would be against this legalized theft and while Tupouto'a is lavishing his assurances on Shoreline's "significant investment" in upgrading the existing system, he has not disclosed relevant and pertinent information that would solidify the benefit of the acquisition. When God gave Moses the Eighth Commandment, "Thou shall not steal", I doubt very much that God meant that thou shall not steal unless you are a member of parliament and the royal family.

We have been warned by the proverb, "You should not bite the hand that feeds you", but if it prevents you from feeding yourself, then by all means you should bite.

Mele Payne Lynch

Mlpayne222 [at] aol [dot] com


 

Power Supply [2]
energy [3]
Shoreline Power [4]
Letters [5]

Source URL:https://matangitonga.to/2006/04/16/shoreline-acquisition-or-legalized-theft

Links
[1] https://matangitonga.to/2006/04/16/shoreline-acquisition-or-legalized-theft [2] https://matangitonga.to/tag/power-supply?page=1 [3] https://matangitonga.to/tag/energy?page=1 [4] https://matangitonga.to/tag/shoreline-power?page=1 [5] https://matangitonga.to/topic/letters?page=1