Results for Business

The year 2006 may have been a tough year for most businesses in Nuku'alofa, but definitely not for the Westpac Bank of Tonga, which made a record net profit after tax of $7.5 million.

The Tongan economy will be struggling for survival during the next financial year, 2007-08, warns Tonga's Minister of Finance, Hon. Siosiua 'Utoikamanu, saying that the government has suffered a massive hit on its revenue stream following the losses suffered by the country's businesses on November 16.

A special US$848,968 Japanese Non-Project Grant Aid to Tonga was signed in Neiafu, Vava'u, last Wednesday, February 14.

Following the events of November 16 BP Oil, the supplier of diesel fuel for Tonga's electricity supply refused to make further deliveries of critical fuel supplies, while demanding full payment and guarantees from the government, a Shoreline executive charges. David Dunkley, the Chief Operating Officer of Tonga's Shoreline Group of Companies said in a statement yesterday that the government in late November had made a payment of just under $2 million directly to BP Oil, in order to resume the supplies of diesel fuel to Shoreline for power generation.

The Tongan government injected $2 million into the Shoreline Power company to pay its fuel bills and prop it up following the destruction of its head office in the November 16 riots, it was revealed today. The government will now have to raise an estimated $60 million to buy back its power generation facility from Shoreline Power. By Pesi Fonua.

Hope for the reconstruction of the Nuku'alofa Central Business District was given a boost this morning when the Prime Minister, Hon. Dr Feleti Sevele, told a meeting of displaced business people that materials for the reconstruction of the CBD would be exempted from certain taxes, and that all government leases in the area will be renewed for 99 years.

Tonga is unable to fund the reconstruction of its central business district and while it is out looking for international donors to provide finance, the recovery of businesses and the restoration of Law and Order are in slow-motion. By Pesi Fonua

Christmas gift vouchers were awarded today by the Tonga Communication Corporation to its most frequent UCall voice and SMX Text customers for 2006.

Delays in the arrests of the ring leaders of the mob, who destroyed the Nuku'alofa CBD on November 16, means that Tonga's emergency powers and the restricted zone must remain in force, a meeting of displaced business people was told on Tuesday.