At the Royal Commission of Inquiry into the sinking of the Princess Ashika today, the Minister of Finance and Public Enterprise, Hon 'Afu'alo Matoto, said he could have done better to ensure that proper due diligence was conducted prior to the purchase of the vessel instead of being too trusting and accepting information given to him.

The Minister giving evidence on his second day at the Royal Commission of Inquiry into the sinking of the Ashika, asserted that if he was to do this again with another possible purchase of a vessel he would do it differently and make sure that sufficient evidence of due diligence was provided.

In his evidence the previous day the Minister accepted he was misled by the former Minister of Transport Paul Karalus who assured him that proper procedures had been taken prior to the purchase.

On being questioned by the Counsel Assisting Manuel Varitimos, the Minister agreed that he placed his trust on that the information provided to him by the former Transport Minister, was accurate.

Failure

The counsel asked him on what he thought was the cause or causes of the sinking disaster, the Minister pointed out that a lot of people played a part.

"On my part I should have insisted viewing evidence of due diligence before the purchase. It was a failure in different levels by not taking up the necessary responsibilities," he added.

The Minister also pointed out that if proper due diligence was conducted it would have proved the vessel was unsuitable. At the same time Shipping Corporation of Polynesia Ltd. should have undertaken their responsibility as operator and made the decision not to sail the vessel if it was unsuitable.

"Do you agree in part, that it was a systematic as well as individual failure?" said the counsel.

The Minister replied that it was more of individual failures by officials by not undertaking the necessary responsibility to ensure everything was done properly because their work is based on trust.

"And we rely that each person does his or her job properly," he said.

Hon 'Afu'alo Matoto also agreed with the counsel's submission at the end of the day that the system was operated by officials and in their shortcomings led to the tragedy. He also agreed that people needed to take up their responsibilities and should be held accountable for their actions.

"If you were to do this again you would have done it differently," said the counsel, and the Minister agreed that he would not be too trusting and he would take time to assess documents and be more robust.

Learning

At the same he agreed that this was a major learning exercise for Tonga, and to prevent similar disasters in the future, he on his part would ensure that all requirements of due diligence would be done at every level.

The Minister agreed that from his banking background and expertise he was well aware that proper due diligence needed a valuation report before purchase.

"Do you accept you failed in your duty as a Minister to ensure evaluation was obtained prior to the purchase of the vessel?" said the counsel.

"Well I could have done better instead of just relying on the information given to me," answered the Minister.

Contract

The inquiry was then informed by the Minister that he did not have the benefit of seeing the contract for the purchase of the vessel until May 29, 2009 when a circular was distributed amongst members of the Procurement Committee for the approval of the purchase.

And that in fact had the contract had already been signed on May 8 before seeking the Procurement Committee's approval.

"By then it was too late for you to advise Government to exit the purchase," said the counsel.

The Minister agreed and asserted that if he had seen a draft of the contract prior to its submission to the Procurement Committee, he would not have signed the document.

The inquiry had initially been told that the contract was signed by the former Transport Minister and co-signed by Acting Transport Secretary 'Eleni Mone. And Mone in her evidence on May 8 confirmed that the former Transport Minister then changed the provision for the signing from the Finance Secretary to herself and she was asked to sign it.

"I suggest that if the Secretary for Finance was asked to sign the contract by Karalus he would know that the matter had not been approved by the Procurement Committee," said the counsel; and the Minister agreed.

The Minister also accepted that if the Secretary of Finance was asked to sign the contact, he would straight out refuse because the Procurement Committee had not approved it.

By asking the Secretary of Transport to sign the contact it was of the effect that it by-passed a potential blocking in signing the contract," said the counsel, and the Minister agreed. He also confirmed that the Transport Minister was seeking for the matter to be resolved because it was urgent.

The Minister continued his evidence in the afternoon session before SCP Managing Director was called to continue his evidence.

The Prime Minister Hon Dr Feleti Sevele who was set to give evidence on February 18 would be rescheduled for another date.