Minister warns Chinese of corruption

© Tevita Motulalo 

COMMERCE and Industries Minister Lisiate ‘Akolo summoned the Chinese business community to his office for a conference to discuss issues affecting the business sector, especially in light of recent revelations in the media of corruption involving the Chinese.

“I have to ask you to stop it. It doesn’t help any of us,” he said to the more than hundred business people attending.

He stated that about $20 to $30 million pa‘anga is lost in government revenue due to corruption.

“Using false invoicing, or double invoicing is illegal,” stated the Minister.

“Whether rightly or wrongly, many Tongan businesses perceive the Chinese as being corrupt,” he said.

He announced that a database would be built of all Chinese businesses so there’ll be more stringent monitoring of activities.

“We want to be more familiar with your business activities, if we don’t wrong impressions about how you do business will continue,” he said.

The meeting is an effort to smooth out relations in the business sector and to rejuvenate trust.

Questions were raised to the legitimacy of licenses issued and used for several locations, that one license issued for a shop and business in Havelu could be used for four other outlets the license holder has in Talamahu Market.

Ministry CEO Tatafu Moeaki clarified that a license issued for one location is restricted to that location only.

He also stressed that the retail and wholesale businesses in Tonga is reserved for Tongan citizens only, including Tongan-naturalised Chinese.

He said there are provisions in the law for Tongan-Chinese business partnerships in the retail and wholesale sector.

“But the Chinese should not hold more than 25 percent of the shares, according to the law,” he said.

He also warned that certain Tongan-registered businesses have been subleased or operated by a Chinese, “which is illegal and both parties liable to penalties which may include revocation of the license.”

“About 300 business licenses have been revoked awaiting further screening due to this,” Moeaki said to Tonga Chronicle.

“It is to protect certain services for Tongans, and that is the law” he said.

Those who attended were thankful for the meeting, and the frank communication from the Minister.

By Tevita Motulalo