Latest / IMI Podcasts / Tonga’s Likely PM Candidate Backs $190,000 CBI Proposal

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Tonga’s Likely PM Candidate Backs $190,000 CBI Proposal · IMI Podcasts

• 0:00
  SPEAKER_00: Three weeks after Tongans went to the polls to elect a new parliament, the Pacific Nation is preparing to choose its next leader.
• 0:06
  SPEAKER_00: Nominations for Prime Minister closed Friday afternoon, with two candidates having submitted their names as of Friday morning.
• 0:13
  SPEAKER_00: The leadership contest comes at a critical moment for Tonga, as a leaked proposal to establish a citizenship by investment program has sparked debate about the country's economic future.
• 0:24
  SPEAKER_00: The proposal, which promises to raise up to 400 million US dollars over five years, has revived memories of a 1980s Tongan passport program that ended in financial disaster.
• 0:35
  SPEAKER_00: Noble MP and Legislative Assembly Speaker Lord Fatafehi Fakafanua has been involved in promoting the CBI proposal, raising speculation about whether he might be among the PM candidates when the 26-member parliament votes by secret ballot on Monday.
• 0:51
  SPEAKER_00: His potential candidacy would break with recent precedent, as nobles have not participated in premiership elections for the past three governments.
• 0:59
  SPEAKER_00: Tonga operates as a constitutional monarchy with a unicameral legislative assembly featuring 26 members, 17 representatives elected by the general population, and nine nobles' representatives selected by the nobles in a separate process.
• 1:14
  SPEAKER_00: The parliament can also include up to four ministers appointed by the king.
• 1:19
  SPEAKER_00: The king serves as head of state and retains significant powers, including the ability to veto legislation and appoint some ministers.
• 1:27
  SPEAKER_00: Following democratic reforms in 2010, the prime minister is now chosen by MPs from within the assembly and leads the government and cabinet.
• 1:36
  SPEAKER_00: The identities of the PM candidates remain confidential until Monday, when parliament convenes to select a prime minister.
• 1:43
  SPEAKER_00: The constitutional process requires the successful candidate to secure a parliamentary majority with repeated rounds and the elimination of the lowest polling candidate if necessary.
• 1:53
  SPEAKER_00: The winner will then select a cabinet subject to the king's approval.
• 1:56
  SPEAKER_00: The CBI program, reportedly designed by investment migration veterans Henley and Partners, would allow foreigners to obtain Tongan citizenship through substantial financial contributions.
• 2:07
  SPEAKER_00: Single applicants would pay$190,000, while families of two to four members would pay$220,000 as non-refundable contributions to a government fund or charitable donation.
• 2:19
  SPEAKER_00: Fakafanua told Kaneiva Tonga News that his involvement aimed to introduce, quote, a potential solution to the government's over-reliance on aid dependency, budget deficit, and lack of foreign investment opportunities for Tonga, end quote.
• 2:32
  SPEAKER_00: He acknowledged that the term passport sale carries political sensitivity given Tonga's history, but said the new proposal differs from past attempts.
• 2:42
  SPEAKER_00: The scheme, he said, includes safeguards such as rigorous multilayer vetting, depositing all funds into government accounts, and revoking citizenship for false applications.
• 2:52
  SPEAKER_00: A senior official, speaking on condition of anonymity, told Kanava Tonga News that Fakafanua and lobbyists approached the current cabinet, headed by Aisa Ke Valu Iki, with the proposal and lobbied ministers individually, but the cabinet ultimately rejected the plan.
• 3:07
  SPEAKER_00: The now defunct passport scheme began in 1982, when Hong Kong entrepreneur George Chen, who became honorary consul of Tonga in China, persuaded King Tao Fahao Tupo IV, who passed away in 2006, to authorize passport sales.
• 3:23
  SPEAKER_00: The program initially issued Tongan protected person passports, which conferred neither citizenship nor residence rights before moving to actual citizenship in 1983.
• 3:34
  SPEAKER_00: The funds from that program became the center of an investment scandal, forcing ministerial resignations and contributing to riots during the 2000s.
• 3:43
  SPEAKER_00: In 2008, King George Tupu V ceded much of his powers, ushering in democracy in Tonga.
• 3:50
  SPEAKER_00: A former prime minister, Lord Tu Ivakano, was convicted in 2020 on charges related to a separate passport scandal involving false claims that Chinese nationals were naturalized citizens.
• 4:01
  SPEAKER_00: Lord Fakafanua maintains the new scheme includes proper oversight mechanisms and would enable investments in health, education, crime prevention, and infrastructure.
• 4:12
  SPEAKER_00: He stated there is an opportunity to alleviate the local taxpayers and lift the population from poverty and hardships.
• 4:19
  SPEAKER_00: Monday's vote will determine whether the CBI proposal moves forward under new leadership.
• 4:25
  SPEAKER_00: This episode first appeared as an article by Mostafa Daily on IMIDaily.com.
• 4:31
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• 4:37
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