Opinion Piece: Cook the Books
Cook the books is a pejorative term for when governments manipulate accounting records by not releasing monthly budget reports and quarterly ministerial expenses, under-reporting expenses in treasury statements, amplifying revenue, and exaggerating assets. Put simply, it refers to producing false financial statements.
The purpose of this white-collar crime known as accounting fraud is to deceive the public, investors, and stakeholders into thinking that the finances are much healthier than what they really are. Needless to say all modern states, including Tonga, have legislation to prosecute not just governments but businesses and non-profit organisations when the books are cooked.
Overshadowed by Diatribe
There were seven arguments set out in the proposal for a vote of no confidence in Tonga’s former prime minister Siaosi Sovaleni. Submitted to the speaker of the legislative assembly on 23 November 2024 by Dr ‘Aisake Valu Eke on behalf of twelve peoples and nobles’ representatives, parliament did not have an opportunity to vote on this proposal.
For reasons that only he will ever know, Siaosi Sovaleni quickly resigned his post on the morning of 9 December 2024 when parliament convened to debate whether the proposal warranted a vote of no confidence. Two weeks later ‘Aisake Eke convincingly won the 2024 prime minister’s election on 24 December 2024. And in theory, the proposal Eke submitted a month beforehand was deflected by Sovaleni’s resignation. Or was it?
Upon instruction of Lord Fakafanua, speaker of the house, Eke’s proposal was published by the legislative assembly along with Sovaleni’s rebuttal. The documents received minimal media attention. What should have been a matter of public interest was overshadowed by the political diatribe of Sovaleni backers. Blowing up Tongan social media were conspiracy theories: first, that Sovaleni had resigned because he was offside with the monarch, and second, he was planning a prime ministerial come-back at the November 2025 general election.
Audit the Books
The first point in the proposal for a vote of no confidence in Sovaleni’s leadership of government was the most important that underpinned all others. That was, government expenditure for 2024/2025 was inconsistent with the budget estimates approved by parliament. A key example was the Pacific Islands forum leaders’ meeting hosted by the Sovaleni government in Nuku’alofa from 26-30 August 2024. The government had plunged into spending for a Pacific forum meeting that was not accounted for in the national budget, nor endorsed by parliament.
The government’s mid-year budget to be sanctioned by parliament for 2025/2026 will be the one to watch. Not because the new prime minister and cabinet burden the responsibility of reigning in state expenditure, but because an audit has to take place before budget estimates can be set. This is no easy feat considering monthly budget reports have ceased since 2020, quarterly ministerial expenses are not released, and the only financial data available is a yearly estimate plus an end-of-year statement on spending. In this case, an audit has one pragmatic inquiry to evidence and answer: have the books been cooked?
Teena Brown Pulu
