23 Mar 2016

Sport: Tonga Rugby working with govt to address debts

1:11 pm on 23 March 2016

The Tonga Rugby Union says it is working with the government to address debts of more than $US300,000 that has left it unable to pay staff and World Rugby to suspend all financial support.

The Tonga Rugby Union says it is working with the government to address debts of more than $US300,000 that has left it unable to pay staff and World Rugby to suspend all financial support.

The Union's Interim CEO, Chair and President, Fe'ao Vunipola, said Tonga Rugby receives an annual grant of $US850,000 from World Rugby towards its high performance unit and development fund, but that money has been withheld since the start of the year.

The TRU owes about 700,000 Tongan Pa'anga, or $US320,000, to Carinat Sport Marketing, Mount Smart Stadium in New Zealand and former 'Ikale Tahi international Finau Maka.

Finau Maka playing for Tonga at the 2007 World Cup.

Former captain Finau Maka is owed money by the Tonga Rugby Union. Photo: PHOTOSPORT

Fe'ao Vunipola said when he began working for the Union last year it had been in receivership since October.

Interim Chair and President of the Tonga Rugby Union, Fe'ao Vunipola, packing down against the All Blacks in the 1999 World Cup.

Interim Chair and President of the Tonga Rugby Union, Fe'ao Vunipola, packing down against the All Blacks in the 1999 World Cup. Photo: PHOTOSPORT

He says the previous arrangement was to repay the money in full by the middle of March but that was not possible.

"By the 15th there was no money coming from anywhere and there was no funds available in the TRU's bank account, so there was no money to pay the debt. I was concerned about it when I first came [to the Union] so I made the approach to our Prime Minister and informed him of TRU's situation and started asking for help from our government. The only option available other than that is to sell the land that we have so that we can pay the debt and then we re-establish ourselves by buying another, cheaper piece of land."

Fe'ao Vunipola said the government has been receptive to their request and both parties will meet with World Rugby officials in Nuku'alofa next month to determine the best way forward.

"At the moment they are drawing up a plan - shall I say a rescue plan or takeover plan. It sounds good, it sounds favourable and we are currently talking of the best way forward for Tonga Rugby, in association with our government helping us out in the long run. It's about first trying to settle the debt and then it will be treated as a soft loan through our government and then our government helping us out to move out of this crisis and moving forward."

Fe'ao Vunipola said the he has been in constant contact with the businesses waiting on payment from the TRU, keeping them informed on where they are at.

The Tonga Rugby Union is currently without a CEO, high performance manager or national head coach and Fe'ao Vunipola said the Unions four staff members have not been paid since the second week of January.