Financial Investigation Procedures Stalled in Tokelau Amid Corruption Concerns

A long-standing backlog of unaudited government accounts has stalled an investigation into allegations of corruption in Tokelau, adding to a growing list of governance woes facing the New Zealand territory.

Background

The concerns were raised by Mario Volk, Tokelau’s former Finance Director, who alleged that Jovilisi Suveinakama, a former General Manager of the public service, had engaged in misconduct. Suveinakama was fired last year after an investigation into the spending of millions of dollars of government funds on property in Samoa and two helicopters found that he had acted without proper approval.

Allegations

Volk alleged that Suveinakama received a 14 percent salary increase in 2014, despite a government-imposed freeze on pay rises in the public service. He also authorized salary increases to three employees, including his wife Lise, who works as a legal advisor, and approved $US3,500 in daily allowance payments to her, even though she was not eligible.

Investigation Stalled

The Office of the Auditor-General has been unable to investigate the allegations because Tokelau’s financial statements for the period have yet to be audited. The Ministry of Foreign Affairs and Trade (MFAT) is committed to improving financial management in Tokelau, but critics say it has moved too slowly and failed to take responsibility for the territory.

Criticism

Volk accused MFAT of being slow to respond to the allegations and failing to hold its officials accountable. He also criticized the New Zealand government for not doing enough to address the corruption concerns.

Political Division

The case has caused political division in Tokelau, with some calling for greater transparency and accountability from the government. In recent months, the territory has amended its constitution to empower the Taupulega and put in place checks and balances for the government.

Ongoing Lawsuit

Suveinakama is suing Tokelau’s government, Ulu Gaualofa, and MFAT official Ross Ardern over his removal from government last year. A hearing in the High Court at Tokelau has been set for next February.