SOE Financial Snapshot 2015
|State-owed Enterprise||(T$ ‘000)||Ownership %||Total Assets||Total Revenue||Total Liabilities||Net Profit / (Loss)|
|Tpower||Tonga Power Limited||100||127,298||51,809||71,462||1,904|
|TML||Tongatapu Markets Limited||100||3,617||572||2,100||(59)|
|FISA||Friendly Island Shipping Services||100||5,798||6,087||4,398||288|
|TDB||Tonga Development Bank||100||96,869||8,341||76,177||1,404|
|TBC||Tonga Broadcasting Commission||100||4,961||1,987||2,383||(80)|
|TCC||Tonga Communications Corporation||100||72,611||28,631||25,451||2,187|
|PAT||Ports Authority Tonga||100||23,703||9,145||5,708||1,971|
|TWB||Tonga Water Board||100||18,088||7,219||13,794||1,381|
|WAL||Waste Authority Limited||100||2,507||1,784||2,417||151|
|TAL||Tonga Airports Limited||100||38,708||10,068||3,363||1,872|
|Tpost||Tonga Post Limited||100||4,200||660||927||(47)|
|TAMA||Tonga Assets Managers and Associates Ltd||100||9,406||943||1,664||314|
|TCL||Tonga Cable Limited||100||46,125||4,717||199||1,502|
|TEQM||Tonga Export Quality Management Limited||100||305||241||176||(18)|
The SOE portfolio performance steadily declined through the period 2002 to 2009, but has since partially recovered. Average portfolio ROE was 6.4% and average ROA was 3.3% in the period 2002-2009 and fell to 3.9% and 2.6% respectively in 2010-2014. The declining returns through 2002-2009 were matched by the decline in Tonga Communication Corporation’s (TCC) finical performance which represented 80% of total portfolio profits at one stage during that period. TCC’s ROE fell to 1% in 2009 and bottomed out at -6% in 2011. Tonga’s economy was also significantly adversely impacted by the Global Economic Crises in 2008/09. Average portfolio ROE has been slowly recovering from the low of 0% in 2009. The improvement follows the Government’s implementation of a broad based reform program supported by the adopted of a much strengthened SOE Act in 2010. In 2015 portfolio ROE had increased slightly to 4% and ROA to 3.3%.
More detailed analysis on the Tongan SOE portfolio can be found in:
Government’s Management of SOEs
Government exercises SOE ownership oversight through the application of the Public Enterprise Act. The Act was strengthened in 2010 – establishing a clear commercial mandate; improving accountability and reporting requirements; removing ministers from boards; establishing a robust CSO framework and enhancing governance. The Minister of Public Enterprises is solely responsible for all SOEs, although Cabinet must be consulted on certain matters, such as the appointment of directors and approval of CSOs.
The Public Enterprise Act (PE Act) requires summaries of SOEs’ annual reports, including reports on how successful the SOE has been in achieving the objectives and targets set in its business plan, to be published in local newspapers. This practice has been followed since 2010 when the requirement became effective. 90% of Tonga’s SOEs produce their audited financial accounts within the time frame established in the PE Act; with six months of the end of the preceding financial year.
The Establishing Acts for the SOEs are listed on their respective pages under the “Important Documents” heading.
SOEs are monitored by the Ministry of Public Enterprises.
Periodically the Government approves policies to provide guidance to the SOEs and assist the Government effectively manage its ownership interest. The following are key policies adopted by Government relevant to SOEs.