From the House by Pesi Fonua

Tonga's parliament has formed a new parliamentary committee to look at how the Nuku'alofa Development Corporation (NDC) administered and spent a $118 million pa'anga loan from China to reconstruct central Nuku'alofa after it was destroyed in riots on 16 November 2006.

On 26 July the Tongan parliament voted 14-2 in favour of Parliamentary Motion No. ½011 by the Prime Minister, Lord Tu'ivakano to form the committee that they hope will be funded by the World Bank or ADB.

The Prime Minister told the House that the Parliamentary Committee would not be investigating the NDC, but its mandate was to find information and to write a report, answering six questions that were spelled out in the motion.

The parliamentary sub-committee is the second attempt by government to investigate NDC and to find out how it administered the loan from China.

An earlier team, authorized by the Prime Minister on 29 April, produced a report for Cabinet in June. But the PM said that the report of the first group was not in accordance with their term of reference and government's need. The earlier contract was terminated.

Negotiating

The Prime Minister nominated Tongatapu People Representatives 'Akilisi Pohiva and Sitiveni Halapua to lead the Parliamentary Committee, which will also include an independent lawyer and the government's Auditor General.

He said that government is negotiating with the World Bank and the Asian Development Bank to fund the work of the committee, and the members of this committee were free to bring in new members on the technical sides to help with their investigation.

Six questions

The six fundamental questions that the Cabinet and now the Tongan Parliament are still seeking answers for are:

1. Under the former Government administration, what was the exact amount of funding allocated to the Nuku'alofa Development Corporation NDC, where is the total amount of funding sourced to (i.e. banks loans, investments, grants, AID donations), and what was the original work plan?

2. To date, what is the exact amount of allocated funding spent on the project and what are the completed outputs in relation to the original work plan?

3. To date, what is the exact amount of allocated funding that has not been spent and how will such funding be spent in relation to the original work plan?

4. What companies have been contracted to complete outputs of the original work plan by the former Government administration and what was the tender and recruitment process?

5. What is the registration status of the contracted companies in terms of the country of origin and who were the signatories responsible for authorizing employment contracts on behalf of the former Government administration and the NDC?

6. What is the governance and management process by which the NDC conducts its work and specifically, what is the reporting process to the Prime Minister and Cabinet in reference to project milestones and timeframes, financial statements and completed work outputs?

They are the same questions that the earlier group reported on.

Finance Committee

'Aisake Eke did not think it was necessary for the House to establish a parliamentary committee to write a report on the NDC and how it spent the loan from China. He proposed for such a task to be handed over to the Finance Committee of the House.

The Acting Speaker of the House, the Deputy Speaker Lord Tu'i'afitu told the House that during all his working life, and in church "this the first time that I have seen a respectable letter, very Jesus Christ like. I am asking you members to accept this urgent motion and for immediate action on the PM's motion to be taken place," he said and called for votes.

The motion resolution was carried 14-2. Against were 'Aisake Eke and Noble Fusitu'a. For it were Siosifa Tu'utafaiva, Samuela 'Akilisi Pohiva, Sitiveni
Halapua, Sione Sangster Saulala, Sione Havea Taione, Semisi Tapueluelu, Mo'ale Finau, Minister of Tourism, Minister of Police, Minister of Land and Survey, the Prime Minister, Minister of Education, Minister of Health, Noble Tu'iha'ateiho.