In a stinging letter from Prime Minister Rev. Dr. Pohiva Tu’i’onetoa threatening to terminate the appointment of TPL Board Director John Paul Chapman, he accused him “for incompetence, neglect of duty, misconduct, or failing to assist the public enterprise to act in accordance with the principal objective.”
“To date, you have missed four TPL Board meetings and that you have indicated your willingness to voluntarily resign provided that you be paid the full director fee to the end of your appointment,” the Prime Minister, who is also the Minister of Public Enterprises, wrote.
He gave Chapman 14 days upon receipt of his letter (written on June 11th) to respond and to explain the allegations against him. He also denied Chapman of payment of any director fee “pending my final decision on receiving your response.”
This is the same Prime Minister who is going out of his way to risk his political career and wavering integrity by uncritical advocacy for his friends ‘Etuate and Akosita Lavulavu, recently convicted by the Supreme Court for fraud.
He is now going after a member of the TPL’s Board whom Chairman ‘Aisake Eke has “found guilty” of insubordination.
Chapman has been perceived by the TPL Board as someone who is not only a dissenter when he does not see things eye to eye with them, but can also be direct in his communication. This was the case in his letter to Board Chairman, Dr. ‘Aisake Eke, immediately after the Supreme Court judgment was released finding the Lavulavus guilty on three counts of fraud.
Eke who was a key witness for the defendants was found by Justice Nicholas Cooper to be without credibility, that “ he was not desirous of telling the truth.”
Referring to the Judge’s ruling, Chapman was direct in his communication to Eke. “I think these are reflective of poor leadership and that, I have experienced under your chairmanship.”
He continued: “As much as I understand you do advise that you are a strong Christian and believer in those values – issues like this article and my experience on the Utilities Board showcase to me otherwise. That’s my honest opinion.”
“I would sincerely hope that with due respect to legal process, perception of honest leadership, your public intention to be an elected member of Parliament – you should resign as the Chairman of the Utilities,” Chapman said.
If Eke’s integrity in terms of not being a good leader was in question, the statements by Chapman confirmed he was not as innocent or even “Christian” as he says he is or as his supporters have given him credit.
It has been some time since the formation of the new TPL Board and the chairmanship of Eke, that trouble on a number of fronts have broken out at the enterprise. Eke’s leadership has come under serious questioning, and as referred to by Chapman’s letter, he has experienced poor leadership under Eke.
It is therefore of no surprise that the Board was seeking to rid of Chapman, and the Prime Minister himself came to Eke’s aid by personally being involved to get him out of the Board. Chapman was a Board member not only of TPL but also of Tonga Gas.
If that was not enough trouble for Eke in dealing with the irregularities at TPL, he opened the door wide to possible contempt of court by putting out a press release defending his innocence in giving false witness, as well as questioning the judgment of Justice Cooper.
Again, it was obvious that the Prime Minister and Eke were two leaders who were united in their support of the Lavuavus, and openly questioned the ruling made at the Supreme Court.
Whatever was allegedly planned secretly for TPL by the PM, Eke, and some of the Board members, they found difficulty in getting it passed Chapman. They had to get rid of him, even at the huge risk of appearing unjust and contemptuous to the public.
It was also a fact that Chapman was rooting for the employees, and for whatever it was to their benefit rather than standing by to watch abusing practices carried out at TPL. He was one who took the side of the staff and workers in their protest for the cancellation of the Life and Accident Insurance. He was one who stood up for the top ranking staff who were suspended and then later returned because of fear by the Board of legal action by these mistreated staff.
But there are issues that Prime Minister Tu’i’onetoa brought up in his threatening letter to Chapman that needed to be addressed. He had accused Chapman of misconduct and even illegal actions as to do with the TPL retirement fund; charges that Chapman has denied vehemently.
There is a current plan by the Board, a decision passed down from the Government that TPL staff and workers retirement funds be transferred to be part of the National Retirement Fund.
The Staff’s Retirement Fund Trustee of which Chapman is chairman approved unanimously to loan out staff retirement to the staff before carrying out the TPL Board’s direction, to join the National Retirement Fund. This was done in good faith as Trustees are the authority over the staff retirement fund.
It is understood that the National Retirement Fund does not do loan schemes, and so provision was given to the staff of TPL and Tonga Gas to do so before the move to the National Retirement Fund.
Chapman who is also a member of the National Retirement Fund had been liaising with them on the plan for the TPL retirement funds, and the plan to join the NRF.
It is reliably reported they were happy to have TPL join their retirement fund rather than the civil Servant Retirement Fund. This was something directed by the previous Government but stopped short of implementation as legislations need to change.
The PTL retirement fund paid retirement to staff who retired. Those who migrated were loaned 100% of their retirement, especially those who received work contracts from North Power Limited in New Zealand.
There were also loans of 50% of retirement to staff who needed, those who were facing hardships after Cyclone Gita.
The TPL Board claim that under the Retirement Fund’s regulations, the Trustees must seek approval of the Board for any payout. The Trustees argued, they have carried out the Board’s wishes to join the National Retirement Fund but the Trustees all agree to first pay out the retirement funds, prior to joining. These discussions were finalized in December of 2020. But the dissension between the Board and the Trustees continued, and have come to play as Eke’s credibility has been challenged by Chapman.
No illegal actions; no theft; no loss of money; and no action that can be deemed inappropriate. The beneficiaries in this decision by the Board of Trustees were the employees, and especially those who were facing retirement soon.
The Trustees consist of one Board member who is the Trustee Chairman; the CEO, the CFO and three representatives from the staff. It can be said the staff will always have the majority vote among the Trustees.
The retirement fund as up to 30 June 2020 was audited by reputable audit organization KPMG. A clean bill of health was issued. But at the direction of the Board, the Tonga Audit Office was engaged to audit the funds from the period of 1 July 2020 to 31 January 2021. And once again a clean bill of health was issued.
The TPL Board met and fired Chapman as chairman of the Board of Trustees, replaced by Ipolito Lasalo who is deputy Chair to Eke on the TPL Board. Eke and Ipolito wrote to the Prime Minister who is Minister of Public Enterprises, to terminate Chapman’s directorship in February.
In the meantime protest letters from the staff and workers are being followed by another one. A huge rift exists between the staff and workers of PTL on one side and Eke, Ipolito, and other Board members on the other side.
TPL is such a convenient distraction for the Prime Minister, Eke, and their friends, the Lavulavus. They want the focus of public attention to shift to TPL. Chapman is the convenient victim in this most recent exercise of poor leadership by those who defend the bad against the good.
Tonga’s most profitable company continues to experience incredible difficulties, now made more complex by the leadership of Eke and Prime Minister Tu’i’onetoa in the Lavulavu defense saga.
