Can government use Pacific Games levy for other purposes? [1]
Monday, August 14, 2017 - 15:50. Updated on Monday, August 14, 2017 - 16:52.
By Pesi Fonua
Can the Tonga government hold the money collected from its Pacific Games foreign exchange levy and use it for other purposes?
It's a question that many people are continuing to ask, following the government's withdrawal from its agreement to host the 2019 Pacific Games.
It was among issues raised during a press conference called by the Prime Minister's Office on August 10 at Fa'onelua Centre.
Since it repealed the Pacific Games Organising Act in June, government has continued to collect a foreign exchange levy that was imposed specifically to raise funds for Tonga's hosting of the 2019 Pacific Games.
Looking at the consequences of withdrawal, Tonga may be penalised or fined if the Pacific Games Council successfully sues the government for terminating its contract to host the games.
If that happens, can the levy funds be used to pay a fine?
“We have not received a writ yet, but Harrison is ready,” said Tonga's Prime Minister Hon. 'Akilisi Pohiva, referring to the New Zealand lawyer Mr R. Harrison SC, who has previously represented him in court cases.
Parties
The Tonga Government, the Pacific Games Council and the Tonga Pacific Games Association were the three parties who signed the 2019 Pacific Games Host Contract on 19 October 2012.
However, before the end of June, and before government had tabled into parliament theNational Budget for 2017-2018, the Prime Minister told Parliament that a letter had been drafted, outlining the Cabinet decision to cancel Tonga government’s agreement to host the 2019 Pacific Games. He said at that time that even if the Tonga Amateur Sports Association and National Olympic Committee TASANOC and the Pacific Games Council disagreed, his Cabinet would stand fast in its decision, “No 2019 Pacific Games in Tonga”.
The legality of government continuing to collect a foreign exchange levy that was specifically intended to finance Tonga’s hosting of the 2019 Pacific Games, is another matter appears destined for Court.
The Minister of Justice, Hon. Vuna Fa'otusia assured the House that it is legal for government to continue to collect levies, then it is for the House to decide what to spend the money on.
The Prime Minister at his Press Conference stressed that government needed money for a number of things, and they would decide what to spend the levy money on.
Meanwhile, in an effort to restructure the administration of sports in Tonga, the government has established an Institute of Sports.
Is the Institute of Sports going to take the role played by TASANOC?
The PM said that they had lost trust in TASANOC, claiming that it owes government a lot of money, and it has not been up to date with its annual reports to the International Olympic Committee.
The Minister for Labour, Commerce and Trade, Hon. Pohiva Tu’i’onetoa, said that he had not been able to find a record of TASANOC being registered as an Incorporation.
Both TASANOC and the Institute of Sports have recruited new directors and, according to the PM, they appeared to be eager to work together.
Golf Course development
With regards to a multi-million Pa’anga project to build a National Park with an 18-holes golf course for the 2019 Pacific Games in a swampy area on the Nuku’alofa waterfront, the PM is still pushing ahead with the project, despite the fact that Tonga is no longer going to host the Games. There is no Master Plan, though work is still rolling along. An Environmental Impact assessment needs to be done properly.
The pushing ahead with the National Park/Golf Course project had resulted in a new causeway being built, which was blocking the flow of water from a lagoon to the sea, and thereby stopping the migrating of fish from the ocean to their breeding place at the lagoon.
The PM said that they did not authorise the construction of the causeway, “it was only for a temporary purpose, and it will have to be dismantled,” he asserted.
To dismantle the causeway is another major task.
Meanwhile they have dredged a canal across the swamp through an old public rubbish dump with evidence of toxic leachate seeping into the lagoon, and impacting the Nuku’alofa waterfront.
Public broadcasting
With regards to the decision by government to privatise the Tonga Broadcasting Commission, and a proposal for government to remain as the major shareholder with 51% and the remaining 49% will be available for the public.
Who will be eligible to buy shares and how much per share?
The Prime Minister said that government is not in favour of selling the shares to the public, and they had yet decided whom they might sell the shares to and for how much. He said that they should be able to make a decision this week.
The 2015-2016 Annual Report of the Auditor’s General tabled into House, revealed the misuse of authority and government finance by civil servants in 13 government ministries. What's the difference between this report and reports in earlier years from the AG?
The Minister for Labour, Commerce and Trade, Hon. Pohiva Tu’i’onetoa, said that he was a former auditor general and during his time while the auditor was under the PM and Cabinet he reported to them and they presented what they wanted to present to the House.
Since 2007 the auditor had come under the Speaker of the House, but the staff was still under the Cabinet. That has changed and now the Auditor General and his staff since 2010 are under the Speaker of the House and the Legislative Assembly, so the report is presented to the House as it is.
The Minister of Police, Hon. Mateni Tapueluelu assured the Press Conference that he would get to the bottom of all these illegal activities, “how dare they do this in a government that has been boasting as the government of the people.” Mateni is the Prime Minister's son in law.