Govt retains ownership of Dateline Hotel [1]
Saturday, December 15, 2012 - 17:04. Updated on Monday, September 9, 2013 - 18:40.
The Government of Tonga has retained ownership of the Janfull International Dateline Hotel on November 30 after it was placed under liquidation to be put up for sale.
Hon. Lisiate 'Akolo the Minister of Finance signed a Deed of Agreement of Transfer of Leasehold Estate and Interest in Land and Related Assets with the liquidator Wayne Madden of Nuku'alofa.
Government agreed to pay off all non-government creditors allowing it to retain ownership.
Hon Lisiate 'Akolo said the immediate plan included conducting a preliminary assessment of the structural, financial and operation position of the hotel to invite potential investment and management contracting partners to take over the long term management.
"The government has no intention of managing the hotel instead it will be contracted out with the government still maintaining ownership or the majority shares."
The Minister of Finance is now responsible for the management of the hotel until a permanent arrangement is made. The Minister intended to appoint an interim management committee to assist him with the management and operation of the hotel and staff.
Meanwhile, the International Finance Corporation of the World Bank Group had offered to assist in conducting a preliminary assessment of the hotel.
Venture
Before the hotel was placed into liquidation the Government of Tonga was the sole owner of the business before entering into a joint venture with Janfull Group of Companies of China in 2002.
Under this former joint venture Janfull Group which operated under China's Ministry of Commerce controlled 51 percent shares and 49 percent owned by the International Dateline Hotel Ltd, a holding of the Tongan Government.
It is understood that on June 11 2001 a preferential loan agreement of TOP$9 million was signed between the Governments of Tonga and China to upgrade and expand the International Dateline Hotel.
But over the years the hotel lacked proper maintenance due to lack of funds and went downhill from there.
The former partnership with the Chinese ended when the liquidator was appointed on 14 July 2011.