© Tevita Motulalo
Hon. Clive Edwards, Minister for Public Enterprises and Revenue exiting the Directors of Ent. workshop yesterday at Moulton Hall. Trailing from behind is Ministry CEO Inoke Vala.
Severe losses and asset depreciation because of fraud and mismanagement is “unbelievable” in government’s 13 State-Owned Enterprises, according to Minister for Public Enterprises and Revenue Hon. Clive Edwards.
Hon. Edwards identified Waste Authority Ltd and Tonga Timber Ltd as landing the two highest operational losses of more than a million pa’anga for the previous fiscal year.
He said 8 of the 13 businesses operated at a loss.
“The full extent of losses cannot be properly determined through lack of proper records. There is high suspicion of fraudulent mismanagement and possible collusion amongst the staff,” the Minister stated.
He also said that Directors of Tonga Timber are not involved in the mismanagement allegations.
“The Directors may have been misled by the reports put before them,” he said.
He also touched on the issue of the national hotel, Janful International Dateline, which the Tongan government has 49% of the shares: “As a minority shareholder we are not responsible for its management and operation and it is of considerable concern how that enterprise is managed in Tonga. Appropriate action is being taken to rectify the problem it is facing with the hotel.”
Edwards compiled a compliance list of government businesses, recording business plans, half-yearly plans, annual reports, and audited reports.
“Out of the 13 Public Enterprises that we have, 7 have a nil complying record. The others comply but not fully,” he said.
