Government received TOP$6,976,799 dividend from Common Utility Board Featured
5 December, 2018. The Minister for Public Enterprises, Honourable Saia Piukala was presented with a cheque of TOP$6,976,799.00 by the Common Board of Directors, as the Combine Utility Dividend for the year 2018.
The Government of Tonga, being the sole shareholder of power, water and waste utilities and the subsidiary companies Tonga Gas/Home Gas, is the sole beneficiary of this dividend.
This dividend declaration was presented during the Common Utility Board’s Annual General Meeting on the 4th of December 2018. It comes off a successful financial performance by Tonga Power Ltd, Tonga Water Board, Waste Authority Ltd and Tonga Gas Ltd/Home Gas Ltd for the year ended 30 June 2018 where the utility companies posted a combine Dividend of $6,976,799 pa’anga.
(Tonga Power Ltd, Tonga Water Board, Waste Authority Ltd and TPL subsidiaries -Tonga Gas & Home Gas). This also marks another record for the amount of tax payable to Government for $2,353,791.00 with is the collective tax payable from all three utilities including Tonga Gas and Home Gas Limited. The Tax Payments are being paid individually to the Ministry of Inland Revenue from each utility’s annual return.
Hence, the Total Payment to Government for the year 2017/2018 from the dividend ($4,622,988.00) PLUS Tax Payable ($2,353,791.00) is $6,976,799.00.
The dividend payment is among the major achievements of the common utilities and the gas companies. This portrays the positive outcome of having one Common Utility Board that enable and encourages the Companies to use excess capacity to share services, improve efficiencies and reduce costs with a strong emphasis on improved service delivery and profitability.
Despite major damages caused by TC Gita & TC Keni to Tongatapu & Eua during the year, including holding the electricity price for the whole year, TPL still managed to reach a good profit at the end. This strong performance from the utilities highlights sound governance and policies implemented by the Common Board with clear guidelines from the Shareholding Ministry (Ministry of Public Enterprises) CEO Sione ‘Akauola and its staff, all lead by the Hon Minister Dr Saia Mau Piukala.
The Hon Minister of Public Enterpriseshas brought to the Ministry through the Governments reform agenda and the structural changes put in place, a strong emphasis on Customer Service while maintainingfinancial success as declared today.
It shows how a business sensitive and determining Chair can help empower a board and install confidence on CEOs to utilize the best skills available from managements and staff.
The establishment of the combined Board of Directors was successfully implemented in October 2015, an initiative identified as world class practice by the Ministry of Public Enterprises and Cabinet, the results of which are highly evident in today’s dividend presentation.
- TPL
