Tonga is to spend more than NZ$4 million, - on the July coronation of ageing bachelor King George Tupou V. (other sources say the cost could climb to NZ$8 million.)

The big bash is said to include Elton John and Mick Jagger.

The Tongan Government is retaining its state of emergency fearing a repeat of the 2006 pro-democracy riots in which 8 people were killed and caused $86 million worth of damage to the capital.

In 2003 the Tongan government Tonga introduced a bill into parliament, radically changing the constitution to restrict press freedom and prevent ordinances passed by the king, or other specified laws, from being subject to judicial review in court. An (ex-pat) Tongan journalist declared the ban to be “an ill-disguised attempt ... to restrict the freedom of the press…and a declaration of dictatorship” by the government.

The law came just a week after the Tongan Supreme Court overturned, for the second time in two months, a government ban on the New Zealand-published Taimi ‘o Tonga (Times of Tonga) newspaper.

In the same report the New Zealand government resisted pro-democracy demands to cut aid to Tonga, as well as calls from the NZ Green Party for Tonga’s expulsion from the Commonwealth.

At the same time, NZ’s International Aid & Development Agency declares that the Foreign Affairs Select Committee is to hold an inquiry in New Zealand's relationship with Tonga, which will include looking at the aid New Zealand provides.

Since then, New Zealand aid to Tonga has more than doubled from NZ$5 million to NZ$11.5 million.

The Tongan King has become a multimillionaire by taking over state businesses, including electricity generation, mobile telephone services, Internet domain name registration and the Royal brewery.

According to a recent Radio New Zealand report, America's fourth largest bank,
Wachovia Corporation is under investigation by US authorities for alleged money laundering.

In 2003, Transpower set up a tax deal with the bank; transferring ownership of the grid to a company registered in the Cayman Islands and then leasing it back.

Wachovia obtained a tax break and Transpower was paid more than $NZ30m.

According to Sharia Finance Watch “Wachovia also had a banking arrangement with MBF Bank Tonga, which is majority owned by MBF Holdings Bhd of Malaysia should be of great concern. Evidence of relationship

The reason : Apart from its branches in Tonga, MBF Bank has 2 branches overseas; one in Rangoon, Burma, see and the other, in Pyongyang, North Korea.

The Pyongyang branch came to public attention in 1995 when BBC Monitoring reported the following: INDUSTRY SOURCE” SAYS MASTERCARD, VISA CARDS USED IN NORTH. Text of report by the South Korean news agency Yonhap

Seoul, 3rd June: International credit cards have been in use in the North Korean capital city of Pyongyang since 1991, industry sources said Saturday [3rd June].

Foreigners visiting North Korea are able to pay for goods and services at hotels and department stores in Pyongyang using their credit cards instead of cash, officials of Seoul branch offices of Mastercard and Visa card companies said.

An official of Mastercard’s Seoul office said, “Mastercard has been in use in Pyongyang since 1991 when MBF Bank, headquartered in Kuala Lumpur, opened its branch in Pyongyang.” (Source:7 June 1995 BBC Monitoring Service: Asia-Pacific
English)