New Director to head Tonga Timber Ltd recovery

New Director to head Tonga Timber Ltd recovery

The Government is pleased to announce that on Wednesday the 16th of March 2011 His Majesty’s Cabinet appointed Mr David Edwards as the new Director/Chair for the Tonga Timber Limited (TTL).

David is a graduate of Otago University in New Zealand, holding a Bachelor’s Degree in Commerce, specializing in marketing and business re-structuring.

He is a businessman with several business interests in Tonga. He has experience in business set-up, including setting up the Fishing Industry Association of Tonga. He was an alternate Director of the Tonga Development Bank Board of Directors and has been on interview panels for senior government officials.

Tonga Timber Limited is in considerable financial difficulty with unsecured and secured debts to the vicinity of TOP$350,000.

There is an undetermined amount of receivables with unaudited accounts and significant non-compliances with the Public Enterprises Acts. Nevertheless the Company represents a considerable amount of Government Investments which has been expended in questionable manner with significant assets to realize, but without a comprehensive business plan, this is not possible.

To protect staff, asset and Government investment it has been decided to restructure the Company and to undertake a recovery program.

Government as thus has chosen Mr David Edwards to spearhead TTL restructuring and recovering program with the assistances of two other existing directors: Mr Viliami Tiseli and Mr ‘Anau Falekakala. Like other Managing Directors of Public Enterprises Mr Edwards performance will be closely monitored and has been given 3 years to turn TTL around or his appointment will be terminated.

Government believes that if the new Business Plan, which is being undertaken by the new directors and a consultant (there being no proper management in place yet), is successful TTL will return to normal and the Company will have a bright future.

ENDS

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