Tonga’s Boardroom Crisis: Why Minister Piukala Is Targeting the Wrong Problem
Tonga’s Public Enterprises (PEs) encompass various state-owned businesses governed by Boards of Directors. These Boards are legally mandated to provide governance, ensure accountability, and safeguard the long-term performance of each enterprise. They do not manage day-to-day operations—that responsibility lies with executive management. Instead, Boards oversee strategy, compliance, risk, and public interest, ensuring that government-owned entities operate professionally and sustainably.
However, in a press conference on April 24, 2025, the new Minister for Public Enterprises, Hon. Paula Piveni Piukala, announced his intention to dissolve all Boards of Directors, citing the annual cost of $1.4 million for board fees and $1.9 million for running the Public Enterprises. His comments suggest a fundamental misunderstanding of the difference between governance and operations, as well as the legal framework that governs these entities.
Boards Are a Legal Requirement—Not a Ministerial Preference
The Minister cannot unilaterally remove the Boards or bypass their functions. These Boards exist under legislation, and their powers and responsibilities are defined by law. If the Minister wishes to change how Boards operate or remove them altogether, he must initiate a legislative amendment process, not act unilaterally.
Removing Boards without legal authority could expose the government to governance failure, financial mismanagement, and potential legal consequences—especially when large sums of public money are involved. Moreover, centralizing power under a Minister or Ministry, without the checks and balances of an independent Board, contradicts the very principles of good governance, transparency, and accountability.
Leadership Issues Are Not System Failures
During the same press conference, Minister Piukala also raised concerns about:
- Past leadership acting selfishly.
- Delays in the submission of financial reports from Public Enterprises.
While these concerns are valid, they reflect failures in leadership, not flaws in the governance system itself. Effective systems rely on competent and ethical individuals to function correctly. Blaming the system without addressing leadership shortcomings only delays meaningful reform.
Boards Are Not the Problem—Weak Political Leadership Is
Tonga is facing a leadership and implementation problem, not a cost problem. The current government articulates numerous plans but struggles to deliver tangible solutions. Eliminating Boards will not resolve the underlying issues; in fact, it may exacerbate them by creating power vacuums and politicizing entities that should be run professionally and commercially.
If the Minister believes reforms are necessary, he should appoint capable new Boards, support thorough performance reviews, and ensure the governance model functions effectively. Responsible reform involves strengthening existing structures, not dismantling systems designed to protect public interests.
Conclusion
Tonga’s Public Enterprises require robust oversight and professional governance. Removing Boards is not the solution—strengthening them is. While good governance incurs costs, poor governance is far more expensive. For the government to achieve meaningful results, it must respect and reinforce the legal and operational frameworks already in place, rather than sidelining them for political expediency.
By Melino Maka
Tonga Independent News
