Tonga Export Quality Management Limited

Board of Directors

Name Position Term Expiry
Mr. Tsutomu Nakao Chairperson 22nd Aug 2017
Mr Viliami Manu Member 21st Aug 2017
Mr Lamipeti Havea Member 20th Aug 2017

Activities

Tonga Export Quality Management Limited (TEQM), was established in 2011 to take over the ownership and operation of the heat treatment facility located adjacent to the international airport on Tongatapu.

The ownership and operation of the heat treatment facility was formally under the control of the Ministry of Agriculture, Food, Fisheries and Forests (MAFFF), but Cabinet determined in 2009 that the activity should be transferred to a commercially focused SOE. The original mandate anticipated that once the SOE had proven commercial and operational viability it would be sold to a group representative of local growers.

Due to operational challenges produce throughput has been below the required level to ensure commercial sustainability. A lack of confidence in the operation of the facility has deterred growers from undertaking the initial planting required to develop the crops that would then be treated through the facility prior to export. The New Zealand biosecurity agency has been working with the SOE and MAFFF through most of 2016 to agree process protocols; by October 2016 these have not been finalized, limiting the ability of the facility to treat produce for export.

TEQM’s ongoing viability is being assessed by the board and shareholder. The New Zealand Government, in conjunction with the Tongan Government and SOE’s board, has commissioned Deloittes to undertake an assessment of the SOE’s ongoing commercial viability. The outcome of that assessment, expected to be complete before the end of 2016 calendar year, will have a significant impact on the SOE’s future structure and operations.

Financial Highlights

Financial Highlights (T$’000) 2014 2015 3-yr Average
Revenue 101 176 96
Net Profit After Tax -5 18 -10
CSO payments 0 0 0
Total Assets 118 305 177
Total Liabilities 84 241 132
Shareholders’ Funds 34 64 46
ROE % -16.0% 28.0% -31.1%
ROA % -5.0% 6.0% -12.2%
Asset Utilization 86% 58% 54%
Cash / Current liabilities 0.033 0.701 0.447

Important Documents