Tonga Independent News

Friday 10, May 2024

Questions Arise Over Pacific Leaders Forum Accommodation Plan

The 53rd Pacific Leaders Forum was launched by the Prime Minister Siaosi Sovaleni at the Faonelua Convention Centre on April 10th. However, a cloud of concern loomed as the Prime Minister revealed in Parliament the following day his plan to address the shortage of accommodation for the 1,000 guests expected in Tonga for the Forum. He announced the government’s intent to construct 200 prefab container houses.

This announcement did not go without scrutiny, particularly from Independent MPs who raised serious concerns about the sudden decision. Foremost among these concerns was the absence of this expenditure in the 2023/24 Budget. Questions were also raised about the timing of this plan, given the Prime Minister’s prior knowledge of the upcoming event.

When pressed on the matter of funding, the Prime Minister deferred to the Auditor General, suggesting an investigation to determine the plan’s compliance with the Public Finance Management Act (PFMA). This response left MPs unsettled, criticizing what they viewed as hasty and opaque spending of taxpayer funds.

Speaking to Tonga Independent, a senior MP expressed dissatisfaction with what was seen as the Prime Minister’s lack of transparency and arrogance. The absence of detailed information, such as construction plans, the number and location of houses, and the budget, left many questions unanswered.

Tonga Independent uncovered further concerning details. Each house is estimated to cost around TOP$50k, totalling an investment of $10 million for the 200 houses. Typically, such a significant investment would undergo a public tendering process. However, it was discovered that the order for the container houses had already been placed with a local company, SINO UNION ECONOMIC TRADING LTD, without such a process.

In light of these revelations, the CEO of a major building supplier expressed disbelief, noting that a public tender should have been the standard procedure due to the substantial amount involved. This raises alarms about the government’s adherence to proper procurement practices.

Another point of contention is the future of these houses after the Forum. Tonga Independent spoke with a local property developer who outlined an alternative proposal. This proposal, presented to the Prime Minister, involved developing housing on the outskirts of town. The developer, along with foreign investors, offered to cater for the Forum’s accommodation needs and then transition the houses to low-income housing post-event, all at no cost to the government.

Despite having these plans with the Ministry of Lands for over a year, the developer claims there has been no response from the Prime Minister’s office. This missed opportunity reflects a broader issue: a lack of government engagement with private sector initiatives for economic growth.

Concerns about the durability of the container houses have been raised, citing reports from Ataata Si’i Island where similar houses deteriorated rapidly after the Hunga volcano eruption. Residents reported a lifespan of only two to three years, highlighting the need for foresight into the longevity of these investments.

The Speaker of the House’s decision to limit MPs’ questioning on these matters further obstructed transparency. This denial of scrutiny hindered the proper examination of the government’s use of public funds for this development.

The government’s lack of transparency regarding its partnerships with the private sector for providing accommodations is troubling. Less costly alternatives, such as refurbishing the Kupesi hotel in Fu’amotu, may have been viable options. The government’s current approach risks not only fiscal irresponsibility but also missed opportunities for more cost-effective and sustainable solutions.