Should Tongan Gov’t. Sell 20% of TCL Shares to Digicel? Yes, but…! ^Featured

There’s great economic sense in selling 20% of Government’s controlling shares in Tonga Cable Limited (TCL) to Digicel Tonga Limited (DTL), a private company.

However, potential unconstitutional questions also surfaced. Cabinet seems to prefer secretive dealmaking on many issues which raised suspicions in Parliament; this is a possible loophole where Cabinet members can usurp tremendous power to rule without checks and balances by Parliament and the Judiciary according to the Constitution.

Tonga’s Cabinet, the Executive Branch of Government, is planning to secure US$5 million financing of its aggressive extension of fiber optics cable modernization to the Vava’u and Ha’apai groups. First, while honorable such needed new technology may seem, there’s no pressing need unless Internet access is provided free of charge to everyone.

Last week, on Feb. 22, Members of Parliament Lord Nuku and Lord Fusitu’a, both from the House of Lords, demanded answers from Prime Minister ‘Akilisi Pōhiva to a rumor of a proposed US$5-million sale. Mr. Pōhiva retorted that Parliament will hear about it “when it is ready.” But the two MPs would also asked: Do you mean that Parliament will only find out about such an important issue when the sale is consummated”  

BENEFITS OVER RISKS IN PROPOSED SALE

While the two MPs are well within their rights to vet the Prime Minister and Cabinet on such important public works, I see great benefits to the economy in completing the fiber optics cable project to the northern islands of Tonga.

Without a doubt, the new technology is essential to bringing modern learning tools in education, upgrade by modernizing business services, and linking these islands with the outside world in this modern age of digital information is long overdue.

The benefits outweigh the risks: Firstly, the immediate benefit from the sale will manifest itself in privatizing a segment of Government semi-monopolies. Communication enterprises will flourish financially in the private sector rather than under the central-planning apparatus of Government.

At present, Government-owned Tonga Communications Corporation (TCC) owns 20% of TCL while Government owns the controlling 80%. Privatizing the entire TCL corporation ownership will encourage competition in the private sector, which will (1) improve services to the public, (2) becomes a job-creating machine, and (3) more people will be paying taxes.   

Secondly, benefits to the public will be far more advantageous should TCL be 100% privately owned. Public will benefit from open competition in the free-marketplace.

TCL and TCC should both be privatized; other communications providers should be allowed to buy TCL and TCC ownership to compete with Digicel Tonga Limited in the private sector; the level of services to the public will certainly improve; and their profit-margins will also appreciate.

THE CONSTITUTIONAL SNAFU

But wait just a minute. Its obvious the Tongan Cabinet is playing with fire also. By secretly negotiating with potential buyer Digicel Tonga Limited, the public perceives a shady dealmaking in which Cabinet members may be stuffing their own wallets at the same time. The lack of transparency in its relationship with Parliament raises a big red flag − and it’s not the Tongan flag.

The suspicions in Parliament is not a misplaced notion, mind you. This Cabinet has been caught red-handed too many times in the past with their pants down during its first year as the Executive Branch of Government. A prominent member has been expelled on corruption charges, and a 2015 was a scandalous-infested year, marked by many improper shenanigans that has outraged the public resulting in two major public demonstrations.

The most egregious of which amounted to a cease-and-desist Royal Order from the Palace in the de-facto signing by the PM of Tonga to the UN’s CEDAW treaty. Treaty signing is a reserved privilege of His Majesty alone.

At stake in this most recent standoff with Parliament on the proposed 20%-share sale to Digicel Tonga Limited, Cabinet is once again treating the powerful Legislative Branch of Government like an illegitimate child. On the contrary, the Constitution requires Government to be of “Three Independent Branches” with equal powers:

Besides the (1) Executive Branch and the (2) Legislative Branch, there’s the (3) Judiciary Branch. And they are to be independent of each other with “check and balance” powers between them. At present, Cabinet members do occupy the Executive Branch as a "block caucus" in the Legislative Branch. They get to vote in the Executive Branch as the Cabinet, and they also wield a big stick in the Legislative Branch with pre-arranged voting powers.

In this writer’s view: This is a major conflict of interest issue where Cabinet is dealing the Legislative Branch as the Cabinet's own pawn. Ironically, Parliament should approve all Government expenditures and investing Government finances and properties.  

(Sione A. Mokofisi is a published Tongan writer. He earned an MBA degree from the University of Phoenix-Arizona, and a B.S. degree from Brigham Young University-Hawaii. He is Director of English-Journalism & Business Management at Tonga International Academy, Havelu, Tongatapu. E-mail contact: This email address is being protected from spambots. You need JavaScript enabled to view it.)