Kumete Wrote:Anyway, let's look at your case stated :
TEPB to Shoreline Power -- was a proposal from People Rep to be privatize and it was leased by Shoreline.
No, that is not correct.
The government was advised my the ADB to privatise as many of the government owned entities as possible, including the TEPB since it was making a loss of around 3 million dollars.
The ADB recommended that the government introduce competition as a part of the privatisation.
Contrary to the ADB's recommendation, the (now) king advised parliament that he would be the only contender for the power, so therefore there would not be any competition. And whats even more disturbing is that the king leased the assets for free, never paid any commissions on those government owned assets, the government kept the debt and people received higher energy prices.
Kumete Wrote:-- return of Shoreline Power to Govt -- again was the call from the People Rep ..... Is this the kind of democracy you are seeking? Took a step forward and take five steps backward after testing of your thoughts?.
Yes you are correct. The peoples reps along with many others advocated for the return of the power to the hands of the government. If you read the comments I made above, it will come abundantly clear to you why this had to happen. Shoreline was ripping the people off. There was no transparency, and shoreline was making a killing out of the deal.
Kumete Wrote:-- bear in mind there was out of Court settlement by Shoreline & some of People Rep on behalf of Electricity Consumers. Did the consumers received any financial benefits from this settlement/s?
The court case was between the peoples reps and Shoreline. I have not seen anything that states that this action was done on behalf of the people. As far as I was aware, it was the peoples reps that funded thier own court case, not the people.
Now, if the people did not receive any benefits out of this, then you need to contact Shoreline for this info since the out of court settlement sought by Shoreline prevented the peoples reps from releasing any details.
Kumete Wrote:-- Govt act as a guarantor of the Shoreline loan to development power generation. Do you understand being a Guarantor? Did Govt paid directly any money for the loan before the handover with Tonga Power?
The Tongan government exposed its own people to a huge risk by acting a guarantor to a private company (shoreline). This risk resulted in the government having to buy its own assets back at a huge cost increase and without any commissions paid on the use of those assets. Moreover, Shoreline had not even maintained the assets that it leased. it returned them in a poorer condition despite making millions of dollars from their use.
Anyway, the guarantor issue was a bad mistake. This allowed a private company (shoreline) to have access to bank loans, of which it was not responsible for. Yes, if shoreline defaulted on its loan, then the people (by way of the gov't) would have to pay for this.
When the government went guarantor, it allowed Shoreline to take a (Risk free) $30 million dollar loan to build Tonfon and the Tonfon TV network...it was not used to improve or benefit the peoples power assets at all.
The end result was the King held the government to ransom. If he failed to pay back his 30 million, the bank would take it from the people by means of thier taxes off the government. Shoreline would still be debt free.
So that then raises the issue of why the government had to pay a ridiculous high price for the power assets that it already owned. It had no choice but to pay out the Shoreline loan since it (the government) was the guarantor of that loan. It was a trap and the government fell face first into it and the people paid the price.
Kumete Wrote:Was the settlement between Shoreline and Tonga Power unlawful?
That’s like asking Robert Mugabe of Zimbabwe if his election is lawfull. Of course it is!! He made the law and he passed the law! Now he has the right to continue to plunder his own people....lawfully!
Ask Bainimarama of Fiji if his coup is lawful. He will answer you OF course! It has been passed buy the current government! Now Bainimarama can sack the judges, the PM and devalue his own currency...legally.
Ask China is their occupation of Tibet and the innocent killing of Tibetans is lawful. Of course its lawfull! This has been sanctioned by the Chinese government!
Kumete Wrote:There was a negotiation, an independent evaluator and a final price of about US$17 millions agreed as settlement.?
No you are wrong.
There was no "Independent" evaluation conducted. The government contracted Price Waterhouse Coopers (PWC) to review documentation itself provided to PWC. that documentation together with the Terms of Reference (TOR) given to PWC ensured that the "valuation" based on the information provided would result in a figure of USD$17 million.
But that does not mean the power assets that Shoreline had leased (and did not own) were in fact worth USD 17 million. No!
it means the documentation and instructions provided to PWC would result in a valuation of USD $17 million. BIG DIFFERENCE!
If the government was honest, it would have engaged a power engineering consultant to properly come up with a transparent valuation of what the assets are worth. Not an accountant.
What Sevele did was like having a car and asking the farmer to provide him with a formal valuation of it!
PWC are not engineers, they are accountants and are not qualified to make an assessment of the value of existing power assets. And they NEVER DID! They are however qualified to make an
accounting assessment based on what ever information is given to them (in terms of receipts, expenses, initial costs etc).
If you remember the price that North Power wanted to pay for the assets? it was far less than official government valuation. That is because North Power understood and was qualified to make such an assesment. North Power was right! The assets were not worth what the "Official Valuation" stated.
This Shoreline issue has made 3 or 4 people very very rich at the expense of people of Tonga. Tongas paid the highest cost of power in the Pacific. And if you add onto that cost the USD$19 million the people also paid to buy it back....It will show you when Shoreline owed the power, Tonga's electricity is worth more than Gold!
The peoples reps were right to ask for the power to be taken back out the hands of Shoreline. This arrangement was a noose around the neck of the government and its people. The peoples reps need to be congratulated for looking after the peoples interest in this very complicated matter.