Former Prime Minister and current Chair of the National Reserve Bank of Tonga, Lord Sevele ‘o Vailahi
The recent panel discussion between the private sector and government stakeholders has brought a long-standing frustration to the fore—one that has crippled investment potential, delayed progress, and eroded confidence in Tonga’s public institutions. At the heart of the issue is a troubling disconnect: too many Chief Executive Officers (CEOs) of public enterprises do not understand their legal obligations, nor do they act with the urgency required to meet the needs of the private sector and the people they ultimately serve.
No one articulated this reality more clearly than the former Prime Minister and current Chair of the National Reserve Bank of Tonga, Lord Sevele ‘o Vailahi, whose remarks were as blunt as they were necessary.
“Too many cooks in the kitchen,” Lord Sevele stated, referring to the bloated civil service and the long trail of decision-making that often ends with a junior clerk rather than the CEO taking responsibility. “The CEO is not attending to what is needed. It goes down to deputy, another deputy, and then the junior clerk.”
This culture of passing the buck is not just inefficient—it’s destructive. Investors, both local and overseas, are willing to commit capital to Tonga. They’re knocking on the door, but nobody is answering. Whether it’s delays in issuing land leases, tax incentive policies for tourism, or approval of financial instruments such as the ADB local currency bond, the silence and indecision from public enterprises are costing Tonga valuable opportunities.
Public Enterprises: Gatekeepers or Gate Crashers?
Public enterprises were created to operate with business efficiency while serving the national interest. Unfortunately, many have lost their way. Rather than acting as enablers of economic growth, they have become bottlenecks—unaccountable, unresponsive, and increasingly politicized.
One only has to look at the decade-long stalemate surrounding proposed investments in a five-star hotel at Tuamotu. For ten years, investors have waited for a clear policy on incentives. Ten years of missed employment, tourism revenue, and local development—lost not because of a lack of money or interest, but because no one in authority would make a decision.
“I asked one of your senior officials, Prime Minister, Minister of Finance, a couple of weeks ago, what is the list of incentives that we have for investors? We did have one, but we don’t have one now,” Lord Sevele added, clearly exasperated.
What does this say about our readiness to support economic development?
The Burden of Delay
For the private sector, delays are not just frustrating—they are financially punishing. Unlike the public service, where salaries are guaranteed and budgets are often inflated, private businesses live or die based on timelines, cash flow, and responsiveness. As Lord Sevele noted, “We, the private sector, we don’t sleep at times at night wondering where we are going to get the next lot of funds to pay for our loans. You guys [in government] are OK.”
A loan delayed is a project delayed. A decision deferred is income denied. These are not just numbers on a spreadsheet; they are livelihoods, job opportunities, and futures for ordinary Tongans.
Accountability Begins with Leadership
We must return to the foundational principles of public service. The Public Service Act is not a symbolic document—it is law. Civil servants, including CEOs of public enterprises, must adhere to its principles: service, responsiveness, respect for the public, and the upholding of public trust.
Lord Sevele reminded us of the professionalism that once defined Tonga’s civil service in the 1970s and 1980s—a time when public servants acted as stewards of development, not as gatekeepers of delay. Today, that culture must be restored.
And it starts with leadership. CEOs of public enterprises must understand that their job is not to delay but to deliver. If they cannot uphold that duty, they should not remain in the role.
A Call to Action
The private sector is not the enemy. It is the engine of economic growth. Tonga has more than enough liquidity—over $300 million in excess funds according to Lord Sevele. What we lack is coordination, vision, and decisiveness at the highest levels of public administration.
To the government and the Prime Minister: we appreciate your efforts to listen and respond quickly where possible. But more is needed. The entire system must be re-aligned to deliver results, not rhetoric.
To the CEOs of public enterprises: step up, or step aside. Your job is not to stall but to serve.
The future of Tonga’s economy depends on it.
