By Katalina Sisasau

Tonga's domestic carrier, Lulutai Airlines, needs $7 million pa'anga from Government to ensure its continued operations, the Minister for Public Enterprises, Hon. Piveni Piukala told a media briefing on 21 February,, claiming that without this financial injection, the airline would cease operations.

Hon. Piukala said that the Lulutai management had indicated that they required $7 million to revive its operations, and that “In a scenario where the government does not have that $7 million, the company will wind up.”

“Right now, Lulutai is drowning," he said.

$10m from Retirement Fund

The Minister said that he had recently learnt that the Retirement Fund Board had given Lulutai up to $10 million pa’anga. This amount consisted of $4 million to purchase shares in the airline and a $6 million loan.

The Minister expressed concern about this investment with a rhetorical question, “I asked the CEO of the Retirement Fund, ‘What made you so confident investing the retirement fund of government workers into a company with very cloudy services?’ ”

The former PM Hu’akavameiliku announced in November last year, that government owned Lulutai Airlines would become a Public Enterprise, following controversy over the fact that the government asset did not have the oversight of a public enterprises board, while an increased shareholding had been sold. The Prime Minister was chairman of the board of Lulutai Airlines.

However, the new PM Hon. Dr ‘Aisake Eke recently stated that no work had been done on the matter.

He also noted that Lulutai Airlines had not submitted any annual reports on its operations to Parliament or the Ministry of Public Enterprises.

The Minister Hon. Piukala has announced that the process to Gazette Lulutai Airlines as a Public Enterprise was nearing completion.