Prime Minister Refutes Conflict of Interest Allegations in Appointment of Acting CEO for Lulutai Airline
Nuku’alofa – 11 March 2025
Prime Minister Dr Aisake Eke has firmly denied allegations of conflict of interest regarding the appointment of Tevita Palu as acting CEO of the government-owned airline. Dr Eke clarified his past association with Palu and the due process that led to the appointment, reinforcing his commitment to transparency and integrity in government operations.
The controversy arose following the government’s decision to appoint Palu for a three-month period to assess the current state of the airline and provide recommendations for its future. Critics have pointed to Dr Eke’s past role as a director of Real Tonga, a private airline owned by Palu, as a potential conflict of interest. However, Dr Eke has provided a detailed account countering these concerns.
Brief Tenure at Real Tonga
Dr Eke explained that his involvement with Real Tonga was short-lived and occurred while he was not in public office. He stated, “I was invited by Tevita Palu to join the Board of Directors of Real Tonga, serving from October 2018 to August 2020, during a period when I was not a Member of Parliament.”
His tenure coincided with a challenging period for the airline, particularly during the COVID-19 pandemic, which severely impacted its operations. When the administration of then-Prime Minister Pōhiva Tu’i’onetoa declined a request for a TOP $3 million government loan guarantee to support Real Tonga, the airline faced further struggles. In response, the government convened a committee to explore solutions for maintaining domestic air services, with Dr Eke appointed as chairman.
“I informed the Minister of Finance at the time that I was on the Board of Directors of Real Tonga,” he said. “He assured me that he trusted I would carry out my role with integrity.” Following the committee’s recommendations, the government established Lulutai Airlines, which has since taken over domestic air services.
Dr Eke noted that his tenure on Real Tonga’s board was cut short due to the onset of the COVID-19 pandemic. “I believe my involvement lasted less than three months, after which the board ceased operations,” he confirmed.
Cabinet-Led Appointment Process
Addressing the appointment of Palu as acting CEO, Dr Eke clarified that the decision was made by a Cabinet subcommittee chaired by the Minister of Public Enterprises. The subcommittee, which also included the Deputy Prime Minister, the Minister for Foreign Affairs, and legal and executive representatives, conducted a thorough evaluation before recommending Palu for the role.
“The subcommittee made a formal submission to Cabinet, which then approved the change in CEO,” Dr Eke explained. “Tevita Palu was identified as the most suitable candidate to lead the airline during this critical period.”
Temporary Role with Performance-Based Review
Dr Eke further emphasised that Palu’s appointment is strictly temporary, and performance based. “His appointment is for a three-month period, during which he will assess the current state of the airline and provide a strategic plan for restoring full services,” he said. “At the end of the three months, his performance will be reviewed, and any decisions regarding his continuation will be based on that assessment.”
The Prime Minister reaffirmed his administration’s commitment to accountability and sound governance in managing public enterprises. “This decision was made collectively, based on the best interests of Tonga’s aviation sector. There is no personal gain involved—only the priority of ensuring the sustainability of our domestic airline services.”
As scrutiny continues over the operations of Lulutai Airlines, Dr Eke’s statements provides a clear response to allegations of conflict of interest, asserting that due process was followed, and the decision was based on merit and the needs of the nation.
