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  • Suveinakama wants to restore belief in democracy

    Suveinakama wants to restore belief in democracy

    Social Democratic Liberal Party provisional candidate Jovilisi Suveinakama is entering politics because he wants to restore the Fijian people’s belief in democracy.

    “Leave aside the political party landscape and what each party has achieved during their term in office and what they can achieve in the future,” he said.

    “We need to restore our peoples’ belief in democracy as the system of government in Fiji.

    “Once that is determined then we have a framework with some certainty.”

    Mr Suveinakama said without a vote for democracy, “the system of governance becomes ad hoc”. ”

    Systems and processes will be built to maintain a ruling ideology that is territorial.

    “They may get things done, but they will rob the inalienable right and freedom of its citizens. In the long run, we fail as an institution with its belief systems.

    “A truly democratic system will ensure the true separation of powers rather than the self-serving interests of one over the other. ”

    Democracy maintains the freedom of its people as supreme. Where the rights of the majority are sharpened by opposing ideologies.

    “Democracy allows our people to have a dream and belief that it can be a reality — a government not robbing our people’s opportunity to get things done just to keep them in power.

    “Democracy is having everyone equal to share the opportunities and challenges — to be excited about your views as an individual knowing that we will walk together no matter what until another people’s government is democratically elected.

    “SODELPA is that government that will restore Fiji as a truly democratic nation.”

    Mr Suveinakama formerly worked as a lawyer at the Howard’s Law Firm.

    He worked in Tokelau for four years before returning to Fiji to set up a consultancy called Black Water.

    He now practises with Toganivalu Legal in Suva. He has seven children.

  • Fiji Development Bank: Avoiding a Madhouse Bank!

    “The Bank [FDB] products are now in competition with its non-state counterparts while this may be healthy for the competition, if not structured properly the customers carrying Focused Sector Loans will carry the burden of the Bank absorbing Non-Focused Sector Products. The spill-off effect would be the high cost of funds!”

     

    1. Introduction

    The Fiji Development Bank (FDB) was established under the Fiji Development Bank Act 1966 on 1st July 1967. The Bank is an autonomous statutory body, the operations of which are controlled by a Board of directors appointed by the Minister of Finance. The Act provides that the functions of the Bank shall be to facilitate and stimulate the promotion and development of natural resources, transportation and other industries and enterprises in Fiji and give special consideration and priority to the economic development of the rural and agricultural sectors of the economy. The Financial Report for 2014 identifies the challenge for the Bank is to remain competitive in the already crowded banking sector. In 2017 during the Bank’s 50th Anniversary celebrations the Government commended the Bank’s partnership in the nation’s progress.

    2. Fiji’s Macroeconomic Landscape

    Fiji’s GDP growth rate has been uneven for the last two decades 2000-2020. Graph 1.1 below illustrates Fiji’s GDP Annual Growth for the period 1999-2020. Some factors impacting this fluctuation include political and constitutional upheavals, natural disasters, election results and changes in political landscape, externalities in regard to preferential quota access for sugar and textile pricing, global crisis and development frameworks,  Fiji’s economies of scale, emigration of skilled workers, inflation, devaluation and the more recent covid-19 restrictions locally and world-wide. The various global and regional growth frameworks has trickled down by triggering development focused national government strategies. As the second largest economy in the region, Fiji hoped to achieve higher rate of sustainable growth targeting five percent (5%) of gross domestic product (GDP). The 5 Year (2017-2021) and 20 Year (2017-2036) National Development Plan promotes the vision of “Transforming Fiji” with inclusive socio-economic development at its heart.

    1 Fiji Development Bank Act 1966, section 5.

    2 https://tradingeconomics.com/fiji/gdp-growth-annual

    3 Such as the United Nations as the Millennium Development Goals (MDGs), Sustainable Development Goals (SGDs), SIDS Accelerated Modalities of Action (SAMOA) Pathway, Forum Compact on Strengthening Development Coordination (Forum Compact)

    4 Fiji Strategic Development Plan 2007-2011.

    3. The Fiji Development Bank

    FDB’s became operative on 1 July 1967, transitioning from the Agricultural and Industrial Loans Board (AILB) which started in 1951 for the purposes of making loans to finance the development of agriculture, crafts and industries. Since its inception, the Bank was accorded virtually broader powers by the Act to facilitate and stimulate the promotion of natural resources, transportation and other industries in Fiji. The Bank’s vision is to be a dynamic financial service provider in the development of Fiji with the mission to provide finance, financial and advisory services to assist in the economic development of Fiji, and in particular in the development of agriculture, commerce and industry.

    FDB is the government’s principal development finance institution. This was further highlighted during the occasion of the Bank’s 50th Anniversary celebrations by the Prime Minister on 28th July 2017 when he stated that, “our national development institution – FDB as it stands today – is true to its tag line as a partner in progress to the Fijian Government, and has played a major role in making us the modern, dynamic island economy that we are today.” The Bank is owned by the government and this is reflected through its governance structure as provided below in Structure 1.2

    5 Financial Sector Development in the Pacific Developing Member Countries, Volume Two, Country Reports, p.10.

    6 FDB 2019 Annual Report, p. 28.

    This structure has continuously come under the new public finance analytic review in terms of a future reforms and strategy in terms of independence from Government influence.

     

    4. Tracing the Bank’s Profit and National Growth Rate

    The Bank’s net profit for the period 1999-2019 tend to mirror changes in the Bank’s strategic framework and leadership as reflected in the Graph 1.3 below.

    Some assumptions on a similar pattern can be derived from the Bank’s profits in 2004-2006, 2014 and 2017 (Graph 1.3) and that of GDP Growth Rate (Graph 1.1). Following Laisenia Qarase’s term as the Bank’s Chief Executive Officer (CEO), incoming CEO’s – Isoa Kaloumaira (1997-2003), Tukana Bovoro (2003-2008), Deve Toganivalu (2008-2017 and Mark Clough (2017-2020) implemented various strategic framework for the Bank in line with Government’s directives. For example, in January 2008 the Government directed the Bank to align it lending activities with development and focus on resource based activities, the Bank swiftly carried out a staff restructure, re-organized its portfolio and introduced operational strategies to address the portfolio shift sought by Government.

    Following this the Bank realigned its loan portfolio into two (2) key sectors – (1) Focused and Non-Focused sectors. The Focused Sector portfolio is most closely aligned to the Bank’s mission and vision, while the Non-Focused Sector comprise investment opportunities that are essentially commercial/

    7 Ibid at n.8, p.60.

    8 1983-1997

    9 Include Bank’s Strategic Plan 2009-2011, 2010-2012; 2012-2017; and 2018-2020.

    10 FDB 2009 Annual Report 2009, p.5.

    corporate and essential for the long term sustainability of the Bank. In 2019, the Bank approved a total loan valued at $187.59m. $87.48m (46.63%) was approved for the Focused Sector and $100.11m (53.37%) for the Non-Focused Sector.

    The Government’s Strategic Development Plan 2007-2011 provided that strategies for higher growth in the plan aim to create the additional jobs and improved incomes urgently needed to lift more people out of poverty. The Plan would put some emphasis on natural resource based sectors’ underperformance and tourism as a lead sector and its capacity to drive supporting development in services, construction and manufacturing as well as creating markets for natural resource sectors if they are able to raise their efficiency, product quality and market orientation.

    On the other hand, while total Bank assets appear to gradually increase during the last decade from 2010 onwards earlier decrease has been a result of weak business, write-off of non performing accounts and consolidation of the Bank’s assets as part of reform and Reserve Bank of Fiji requirements. The Bank’s Total Assets for the period 1999-2019 as illustrated in Graph 1.4 below.

    11 FDB 2019 Annual Report, p.39.

    12 FDB 2019 Annual Report, p. 9.

    13 Ibid, n.7

    5. Analysis: Impacts and Implications on Bank’s Lending Policies

    In undertaking this analysis, I came across the following observation:

    A number of constraints inhibit FDB’s growth, including the land tenure system; increasing Government intervention in decision making; the high cost of funds, which puts them at a competitive disadvantage with commercial banks; the narrow skill base; lack of any formal prudential supervision; and the cost of maintaining a branch network in the outer islands.”

    An example of this was in 2000 when the entire Board was replaced with new members who had close connections to the Government. It was also reported that the Government intervened into FDB’s operations, seeking to direct lending to poorer rural areas. Furthermore and more critical, is the observation that FDB is an, “institution under some considerable market and political pressure, with growing confusion as to its future role.”

    Making a Choice or Striking a Sustainable Balance: Development Financing and Commercial Bank

    While I note and submit the issues identified above I will not revisit them. My analysis will focus on consequence of those issues identified and the associated risks to the Bank and more importantly to the people or the customers of the Bank. The assumption is that unless the Bank is clear about its future, it will not be a game-changer. Table 1.5 below shows that given FDB’s role in Fiji’s development it holds only 6.63% of the country’s market shares. This could increase should the Bank become clear with its future role.

    14 Ibid, n.8 at p.56

    15 Ibid, p.37

    16 Ibid

    17 FDB 2019 Annual Report

    Secondly, Government intervention is not highly unusual in these circumstances. An ADB paper on Strategy, Independence, and Governance of State Owned Enterprises in Asia discusses this very issue through the application of New Public Management (NPM) to State Owned Enterprises (SOEs). The paper puts forward a framework that with SOE’s adopting NPM supported by ownership strategy and independence on an organizational as well as a personal level creates a governance framework that minimizes perverse incentives and maximizes the incentives for SOEs to pursue the three (3) goals while balancing them: “the provision of public or merit goods, the increase of efficiency in providing these goods, and the provision of these goods through an enterprise operating with profits.” Once this governance framework is in place, its review and learning curves from its implementation would allow the Bank, as an SOE, to be a game-changer.

    It is my analysis that the Bank lacks this Governance Framework (NPM + Strategy + Independence = A Framework for Governance). In perusing through the Bank’s Annual Reports, it is difficult to trace whether it adheres to the public enterprise principles for SOEs in Fiji as per the Public Enterprises Act 2019.

    Finally, due to the lack of Framework of Governance and Public Enterprise Principles, the Bank products (loans) as a public good require some due diligence and restructure. The Bank products are now in competition with its non-state counterparts while this may be healthy for the competition, if not structured properly the customers carrying Focused Sector Loans will carry the burden of the Bank absorbing Non-Focused Sector Products. The spill-off effect would be the high cost of funds. Alternatively, the opportunity cost would be to focus all funds on the Focused Sector for more effective strategy. Graph 1.4 points to the Bank’s total assets and one of the reasons for the decrease trend is the write-off of non-performing accounts. While the Bank is meeting its objective in supporting the Government the customers are beginning to experience implications of change in loan landscape from Focused to Non-Focused Sector. At the heart of this product issue was highlighted by James D. Wolfensohn during his tenure as President of the World Bank from 1995-2000 was that, “the Ugandan government was spending $3 per citizen per year on health care and approximately $17 per citizen per year on paying back debt…I said to myself, This is the economics of a madhouse! It was a debtor’s prison. Our World Bank loans were dragging down the very nations we wanted to help.”

    The Bank’s evolving challenge is to continue to identify products that respond to economic conditions, the needs of customers and the direction of Government to develop financial solutions relevant for Fijian individuals, businesses and projects.

    18 Henrique Schneider, Strategy, Independence, and Governance of State Owned Enterprises in Asia , ADB Institute Working Paper Series No. 986, August 2019

    19 Ibid, – Ownership strategy ties an SOE to its owner, independence aims to strengthen its organization structure as non-state.

    20 Ibid, p.12.

    21 Ibid.

    22 A Global Life by James D. Wolfensohn at p.283

    23 FDB 2019 Annual Report.

    6. Conclusion and Recommendation: Avoidance of a madhouse Bank!

    In conclusion, despite prejudice, stigma and challenges affecting SOE, there are certainly opportunities to be undertaken through bold decisions through its governance structures. The Fiji Development Bank requires an effective governance framework that adheres to NPM to address constraints of increasing Government intervention in decision making; the high cost of funds, which puts them at a competitive disadvantage with commercial banks; the narrow skill base; lack of any formal prudential supervision; and operative costs. Prolonging these constraints will continue to inhibit FDB opportunity as a catalyst and game-changer in the financial sector. For this reason, this case-study puts forward the following recommendation for FDB:

    1. The Board needs to make a bold decision in terms of its future. The future of FDB is currently not clear in terms of its role as Development Financier and/or as a Commercial Bank;
    2. Implementation of a Governance Framework acknowledging the different tiers of NPM;
    3. Visible Implementation of the Public Enterprise Principles;
    4. Development of relevant and responsive loan products through the appropriate Governance platform and public enterprise principles.

    Reviewing the implementation of these recommendations will only improve the Bank’s governance and product development maturity. This paper puts forward the above recommendations as basis for best practice in other similar functioning institutions in Fiji and in the Pacific region.

    -End-

    24 Recommendation 5 of the “Strengthening Public Financial Management Reform in Pacific Island Countries” a joint product of the World Bank, the New Zealand Ministry of Foreign Affairs and Trade, the Australian Department of Foreign Affairs and Trade, and the Overseas Development Institute.

    7. Bibliography

    1. Strengthening Public Financial Management Reform in Pacific Island Countries, a joint product of the World Bank, the New Zealand Ministry of Foreign Affairs and Trade, the Australian Department of Foreign Affairs and Trade, and the Overseas Development Institute.
    2. https://www.mckinsey.com/industries/public-and-social-sector/our-insights/improving-performance-at-state-owned-enterprises
    3. https://tradingeconomics.com/fiji/gdp-growth-annual
    4. Fiji Strategic Development Plan 2007-2011.
    5. Financial Sector Development in the Pacific Developing Member Countries, Volume Two, Country Reports.
    6. FDB Annual Reports 2019, 2009
    7. Henrique Schneider, Strategy, Independence, and Governance of State Owned Enterprises in Asia , ADB Institute Working Paper Series No. 986, August 2019
    8. A Global Life by James D. Wolfensohn
  • Tapping into the ‘cultural economy’

    Tapping into the ‘cultural economy’

    A global network of indigenous businesses is now accessible to Fijian businesses through its Fiji Chapter, whose representatives were at the Suva Flea Market this week for a “talanoa session” and to register interested SMEs operating there.

    Offering a platform to what it calls “the cultural economy”, the Fiji Chapter of the World Indigenous Business Network (FCWIBN) was established in 2019 and in 2022, became the first chapter from the Pacific region to be registered with the World Indigenous Business Forum (WIBF), its parent organisation.

    “We are targeting different sectors of the economy, in terms of industry. Not just women – everybody. But this is specifically for women. We’re targeting this sector of the economy so they can participate in the development of the cultural economy of Fiji. So we’re trying to work on that with the women,” said FCWIBN general secretary John Tuiono.

    “This is a business platform, not political. We are not against any ethnicity or racial lines. We are here for everybody. The national stance is you are here, you become a member, whether you are from India or China, if you are in Fiji, you can become a member of the Fiji Chapter.”

    A group of business owners based at the Suva Flea Market attended the “talanoa session” with most curious to know how they would benefit from FCWIBN, which is charging an annual subscription fee of $20 per individual, $50 per co-operative and $500 for provincial companies and non-indigenous companies.

    “The Fiji Chapter is linked to the WIBN. That’s what we bring,” said legal advisor Jovilisi Suveinakama.

    “The WIBN comprise of over 80 countries. We’re talking about what you call a ‘cultural economy’, where indigenous businesses are able to link, trade, learn from each other and work together. So it’s about networking, learning and growing,” Mr Suveinakama said.

    UNESCO recently described the global cultural and creative industries as being among the fastest growing sectors in the world. “With an estimated global worth of 4.3 trillion USD per year, the culture sector now accounts for 6.1 per cent of the global economy,” it said.

    “They generate annual revenues of $US2250 billion ($F5.1t) and nearly 30 million jobs worldwide; employing more people aged 15 to 29 than any other sector. The cultural and creative industries have become essential for inclusive economic growth, reducing inequalities and achieving the goals set out in the 2030 Sustainable Development Agenda.”

    The Fiji Chapter held its inaugural annual conference in Suva in June, in which it managed to register more than 150 businesses, including the Fijian diaspora overseas, said Mr Tuiono, and there are plans to move out to the 14 provinces later in the year.

    He said a digital marketing platform similar to Amazon was being created by the WIBN to connect chapters worldwide and once it is operational, it would link up Fijian businesses to what other countries have to offer and also be an avenue where they could sell their products.

    “The beauty of this is it’s a globalised network. You’re not just in Fiji or have your thinking localised in one locality. You’re part of a huge global family with an equally huge marketing network, so that’s the plus, the benefit of this.”

    Carolyn Ah Koy, a director of Kelton Investments, the landlord of the Suva Flea Market, said there are talks to use the Suva Flea Market as a business incubator.

    “We’ve been talking with the gentlemen from WIBN and we are formulating ideas as to how best the Suva Flea Market can incubate and mentor the 200 businesses that are here within our precinct,” Ms Ah Koy said.

    “Like we’ve done the Makete Show, we’ve done different things to see how best to be successful as small businesses in this precinct, because this is how we incubate.

    You have to understand that MSMEs provide about 70 per cent of the employment in this country. That is a very important statistics for us as small business owners,” she added.

    The WIBN is a global online community created by members of the WIBF to “connect, inspire, mobilise and support organisations and entrepreneurs in the sustainable development of indigenous businesses”.

    According to its website, its “goal is to increase participation in the global economy by providing opportunities to broaden markets, improve access to business potential, increase indigenous economic benefits from major resource development and energy investments, and increase indigenous prosperity through economic growth”.

  • Asst Minister For Youth & Sports Opens Waiqanake District School Ece Week – O Navakavu Qoi!

    Asst Minister For Youth & Sports Opens Waiqanake District School Ece Week – O Navakavu Qoi!

    CHILDHOOD EDUCATION BEGINS AT HOME – ASST MINISTER FOR YOUTH & SPORTS ALIPATE NAGATA

    As young people it is very important to adopt eagerness to abide by the values one is taught at home.

    This was highlighted by Assistant Minister for Youth and Sports Alipate Nagata at the Early Childhood Week and International Day against Drug Abuse and Illicit Trafficking commemoration day at Waiqanake District School. “Early childhood education is an important phase of your education as it prepares you for the transition to elementary school.”

    The message from Assistant Minister Nagata could not be further from the truth and truly aligned to the Navakavu Revitalization Strategy 2018-2022. O Navakavu Qoi!!

  • Minister For Health Supports Navakavu’s Medical Facility Project

    Minister For Health Supports Navakavu’s Medical Facility Project

    On 1 July 2019, the Yavusa o Navakavu Development Trust met with the Minister for Health – Hon Dr Ifereimi Waqainabete to explore partnership in the construction of a new community medical facility by Ridgeview Estate Limited. On 7 June 2019, during the Navakavu Day 2019 Celebrations, Mr Anthony Ah Koy a Director of Ridgeview presented to the Goneturaga na Rokobaleni of the Yavusa o Navakavu a Project Commitment Letter for Ridgeview to participate in the Navakavu Qoi – Health Centre Project. Ridgeview will be constructing the Sir James Michael Ah Koy Health Centre in Navakavu which would take 6-12 months from the commencement of construction.

    Dr Waqainabete welcomed the members of the Navakavu Trust and was very supportive towards the Project stating that accessibility of health services is a key priority for the Government. The Government plans to develop a medical centre to support the wider Naboro and Veisari community currently using the Lami Health Centre. Advisor to the Navakavu Development Trust, Mr Jovilisi Suveinakama said during the meeting that the initiative is in line with Goal 3 of the Navakavu Strategy 2018-2022 which aims to ensure a more accessible health service for the people of Navakavu and the surrounding communities.

    The Minister plans to travel to the site of the new Sir James Michael Ah Koy Health Centre in Navakavu next week.

  • Pacific Future: Designed To Be Fragmented For Effectiveness

    Pacific Future: Designed To Be Fragmented For Effectiveness

    We are only too aware about the 2019 Pacific Islands Forum theme – Securing our future in the Pacific which builds on the 2017 and 2018 themes. Despite the connotations associated with this theme, the question we all ask is – What is the future of the Pacific? Recent election results in the region shows that change is coming – not necessarily in regard to the impact of a One China Policy choice but perhaps a policy or ideological change that is more effective and more meaningful for our Pacific people. While the Pacific governments have been very instrumental in the global and regional agenda; Pacific communities have either opted for a change in leadership or strategy. The bubble enjoyed currently by Governments will burst as communities take a more determined role in their countries’ future.

    Australia and New Zealand’s Pacific policy of “Stepping-up the Pacific Engagement” and “Pacific Reset” both have had its challenges for the region. While we share the same region and have a deep history that builds our current relationships, we still “walk different lines”.  The diplomatic nature of these policies have become quite complex to manage as the traditional Pacific landscape get more tenants. The geopolitics does have the tendency to throw the Pacific into a springboard for a more fruitful endeavor. Fortunately or unfortunately the call for solidarity is left to choice. Decision making or the lack of it continues to hinder regional solidarity. Decisions on regional frameworks have become more complex and complicated to drive development and regional progress. This will eventually frustrate some Pacific island countries to explore other strategies to meet their goals.

    The role of regional organizations to drive regional policy in accordance to leaders’ decisions and the region’s values has come to the foe of regional issues. That being said, the Pacific has been quite determined and have opted for sub-regional solution. The Sub-regional entities such as the Melanesian Spearhead Group (MSG), Polynesian Leaders Group (PLG), and the Micronesian Presidents’ Summit (MPS) continue to forge “solutions closer to home”. These sub-regional entities engage sub-regional focus in strategies and relationships that are more determined. There is definitely a call for regional organizations to deliver effective outcomes for the region.

    The impact of the United States of America and the European Union’s engagement in the region and more recently, relatively, China and India has been considered differently in the Pacific. The differences in views have shaped policies in the region. Addressing Climate Change and Economic Frameworks are the most influential issues when it comes to the region’s engagement and relationships. While as much as we try and hint common values and principles to drive these engagements the intention of policy makers are too obvious for our communities to readily commit to. As national elections continue to feature in our region, it is clear that our Governments will have to drive a clearer stake in the sand. Unfortunately, without values, the issues that will threaten our solidarity as a region are quite compelling. 

    Change is definitely coming to the Pacific!

  • Decolonization: Tokelau Self Governance Held To Ransom

    Decolonization: Tokelau Self Governance Held To Ransom

    Ulu o Tokelau giving evidence at the High Court in Wellington, NZ

    Tokelau is a New Zealand colony or territory (Tokelau Act 1948). The New Zealand Minister of Foreign Affairs appoints an Administrator with responsibility for the administration of the executive government of Tokelau (Administration Regulation 1993). Consistent with Tokelau’s intention in the 1980s to progress towards self-determination, New Zealand has substantially delegated powers of the Administrator to Tokelau in support of progress towards self-governance. New Zealand’s relationship with its territory has been likened as a “beacon of hope” by the United Nation’s Decolonization Committee (C-24) for other approximately 16 administering power-colony relationship currently under the C-24 list.

    In October and November 2016, two helicopters were purchased at USD$2.38m by the Tokelau Administration from the increased Fisheries revenue of the territory for the purposes of implementing agreed local strategic development priorities. In March 2017, a New Zealand TV One news highlighted this purchase as not supported by New Zealand taxpayers. New Zealand Ministry of Foreign Affairs & Trade (NZMFAT) seized this as an opportunity to redraw the management of the increasing territory’s Fisheries revenue within its constitutional annual budgetary allocation.[1] For the territory, it was an opportunity to re-map its geopolitical settings. The already Inter-atoll rivalry and the exploitation of traditional authority provided the impetus for the surgical witch-hunt. Blindly and without careful thought towards the bigger self-determination picture the political landscape became internally toxic and self-destructive towards the end game.

    Two of the most senior government officials were identified as scape-goats became seemingly the amicable solution to what was becoming a politicized situation. The Government’s Chief Policy Advisor for 10 years (2007-2017) – Jovilisi Suveinakama and the Chief Finance Advisor – Heto Puka were busy putting together the draft National Budget for the 2017/18 Financial year following a steady decade of growth through the implementation of the Tokelau National Strategic Plan 2010-2015, refer to graph below, in their Office in Apia, Samoa and much too busy to suspect the “Easter Plot”.

    On 11 April 2017, both Tokelau and NZMFAT agreed to suspend and investigate the two senior government officials for unauthorized purchase of the helicopters under the employment rules. On Thursday 13 April 2017 just a day before Easter Friday, Mr. Suveinakama and Mr. Puka were handed their suspension letters. The suspensions meant that both NZMFAT Officials and Tokelau Ministers would abandon the Commission of Inquiry directed and commissioned by Tokelau’s Parliament (General Fono) and turned it towards an employment case noting that neither New Zealand (Administering Power) and Samoa (Place of Employment) employment laws would apply. The situation and investigation became toxic instantly.

    An investigation term of reference (TOR) was drawn up which together with the claims for unauthorized purchase of helicopters named the Two Senior Officials for giving unprofessional advice for the purchase of a prime piece of land next to the main wharf in Samoa for WST$10m. The land currently sits the new Tokelau Administration’s national office and saves the government approximately WST$1m every year in cartage fee and fuel, and the helicopters had been resold with the proceeds absorbed into recurrent budget expenditure appropriations instead of development priority goals.

    With the legal advice from Tokelau’s lawyer to escape the Samoa Employment laws, the two officials were summoned to travel from Samoa which is their place of employment to Atafu, Tokelau approximately 500km to an artificial islet called Lotomau for the ‘employment investigations’.

    Both senior officials advised the Investigator to have the interview in Apia, Samoa where they worked and accessible to their lawyers – this was refused. At the end the pair chose not to go to Atafu, Tokelau as summoned by the Investigator. Unfortunately, as a result, the Tokelau Ministers made further punitive interventions with the investigation where salaries for the duo were withdrawn, and in addition they were barred from leaving the country despite both officials being non-citizens of Samoa and had no means of financial support. Five months later, without a face-to-face interview, the Investigator submitted a Report to the Tokelau Ministers, as Employers of the two senior officials, with a termination recommendation.

    On 24th November 2017, both Mr. Suveinakama and Mr. Puka were terminated after more than 2 decades as combined years of service to the Government of Tokelau as Chief Policy Advisor and Chief Finance Advisor respectively. The pair sued Tokelau’s government and leaders with the view that Tokelau leaders as public office holders had to exercise their powers transparently and in line with the rules of natural justice. In 2019 the High Court[2] of New Zealand in Wellington sitting as Tokelau’s High Court ruled their dismissals were lawful, but a previous move to suspend them without pay was illegal. Questions were asked as to how the dismissal could be lawful when the Court acknowledged that a significant component of the whole process was illegal. The decision of the High Court is currently being appealed following unsuccessful attempts to resolve the matter with the NZ Minister of Foreign Affairs – Nanaia Mahuta in November and December 2020. Despite all, the two senior officials will certainly not give up the search for the “beacon of hope”. –END-

    [2] Suveinakama v Council for the Ongoing Government of Tokelau [2018] NZHC 1787.

    [1] NZ Annual Constitutional support was NZ$12m and Fisheries (EEZ) Revenue was NZ$24.5m as at June 2017.