MPs Push for Transparency in Lulutai Airlines Share Deal
The controversy surrounding the recent share transaction between Lulutai Airlines and the Retirement Fund Board has escalated, with MPs expressing disappointment over the lack of transparency from the government. In our previous article, we delved into the concerns raised by several Members of Parliament regarding the transaction, highlighting their frustration at the government’s apparent disregard for requests for financial information on Lulutai.
One key point of contention is the fact that Lulutai Airlines is not classified as a Public Enterprise, giving the government leeway to bypass certain scrutiny measures. Adding fuel to the fire is the revelation that both businesses involved in the transaction are chaired by the Prime Minister.
In an exclusive interview with Tonga Independent, Dr. Aisake Eke, MP for Tongatapu 5, disclosed his plans to introduce a bill aimed at bringing Lulutai Airlines under the Public Enterprise umbrella. This move, if successful, would enable MPs to scrutinize the financials of Lulutai Airlines, providing much-needed transparency into its operations.
“I have the bill drafted and will table it on the 8th when parliament resumes,” Dr. Eke stated firmly.
The implications of this potential change are significant. If it is indeed revealed that Lulutai was insolvent at the time of the share sale, it would mean that the Retirement Fund Board purchased $8 million worth of shares in a company that was trading while insolvent. This raises serious questions about the decision-making process behind the transaction. Was there a professional, independent share valuer consulted? Whose decision ultimately led to this significant investment using retirement fund savings?
Moreover, the use of retirement fund savings to prop up a company facing financial difficulties raises concerns about the risk taken with the hard-earned money of employees. MPs and the public alike are keen to understand the rationale behind this move and whether proper due diligence was conducted.
As the debate intensifies, all eyes are on Parliament as it reconvenes on the 8th, with Dr. Aisake Eke’s bill set to be a focal point of discussion. The outcome of this bill and the ensuing scrutiny could have far-reaching implications for the government, Lulutai Airlines, and the Retirement Fund Board. It is a critical moment for transparency and accountability for the Tongan government.
