NUKU'ALOFA (Pacific Media Watch / Radio New Zealand International): The leader of the opposition in Tonga, 'Akilisi Pohiva, has condemned plans to build a new royal palace and government offices in the capital city.
Pohiva told Radio New Zealand International that following the China-financed rebuilding of the city centre, there were plenty of offices available for the government to use, and that it was unnecessary to build more buildings.
Pohiva said Parliament had not been given the opportunity to debate the proposal.
"It was the government [which] put up proposal and they approved it without putting it through to Parliament for discussion," he told RNZI.
There was "no need for a new palace", Pohiva said, because the King was not even using the palace he had.
"There is no one using the existing palace. His Majesty is living in a different home. I don't see any reason why government should put up another palace," Pohiva said.
The Tongan government is still repaying the US$119 million loan it took out to rebuild Nuku'alofa because it had not succeeded in convincing the Chinese government to turn this into a grant.
Deferred payments
The Chinese government has deferred payments on the loan for 20 years - yet another reason why the Tongan government should not be borrowing more money.
"There is no reason for the government to put up that project [ the new palace] while the loans from China are still out there and the future of that loan is very uncertain... I don't see any opportunity for the Tonga government to repay any time in the next 20 years or so," Pohiva said.
In 2012, a Parliamentary Select Committee said the $119 million loan to Tonga from the Exim Bank of China could be illegal as it failed to meet the requirements of the Public Finance Management Act.
Matangi Tonga Online reported then that "about 58 percent of the $119 million loan was illegally spent and was indifferent to the initial loan agreement that the Tonga parliament agreed to, which was for the reconstruction of buildings that were burnt in the 2006 riots.
"Among projects the report claimed were illegally funded with the Chinese loan were the $31.9 million Vuna Wharf Project and the $13.7 million Royal Palace Extension Project".
In addition, the owners of the five properties rebuilt with the loan money from China had not signed loan agreements with the government of Tonga, the report said.
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