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Prime Minister of Tonga Lord Fakafanua says potential funds from an investment citizenship scheme could address and alleviate a lot of the problems and issues that the Kingdom's government are facing.

Photo/Supplied

Politics

Fresh warning as Tonga PM defends citizenship investment scheme

A lawyer says Tonga risks repeating past mistakes as the Prime Minister argues selling citizenship to foreign investors could help fix a billion dollar deficit.

A senior lawyer Tonga risks repeating one of its most damaging scandals, as the Prime Minister defends plans to sell citizenship to wealthy foreigners.

Teisa Pohiva, a pro-democracy advocate, says the proposed citizenship-by-investment scheme may bring quick cash but could expose the country to corruption, crime, and long-term damage.

She was responding to Prime Minister Lord Fakafanua, who says the proposal could help fix Tonga’s failing infrastructure and keep workers from leaving.

Under a leaked proposal reported by Kaniva Tonga, foreigners could buy Tongan citizenship for US$190,000 (NZ$330,000). Families of up to four would pay US$220,000 (NZ$382,000).

The government is estimated to earn almost NZ$700m over five years. Fakafanua says the scheme would create a new source of income for Tonga, which faces a billion-dollar shortfall in infrastructure such as roads, ports, and public buildings.

But Pohiva warns that selling citizenship is not a simple business deal and points to Tonga’s troubled history with passport sales in the 1980s and 1990s.

Lawyer and pro-democracy advocate Teisa Pohiva. Photo/supplied

That scheme reportedly raised more than $30m, but Pohiva says less than 10 per cent ever reached the Treasury.

Thousands of passports were sold, including to former Philippines President Ferdinand Marcos and his wife Imelda. Tonga was widely ridiculed and its reputation badly damaged.

“If people are willing to purchase Tongan passports at those high costs and Tonga doesn't have anything to attract them here, what are they going to use the passports for?,” Pohiva tells PMN News. “It'll be an opportunity for international criminals to use passports for purposes we don't want to think about.”

Tongan passport holders enjoy significant visa-free or visa-on-arrival access to numerous countries, with figures around 129-137 destinations as of 2025. Photo/Supplied

She warns the scheme could be abused by people wanting to hide their identity or move, putting Tonga at risk.

The new proposal is being promoted by Henley & Partners, a Swiss-based investment firm selected by Fakafanua.

In an interview with John Pulu on PMN Tonga, Fakafanua says the model includes stronger checks and balances than in the past.

He says wealthy applicants mainly want freedom to travel, not to live in Tonga and describes a second passport as an “insurance policy in case the country they live in is untenable for them, and they want to be able to move freely around the world”.

The Prime Minister also says the scheme could help the government keep skilled workers leaving public sector jobs to earn higher wages overseas, including seasonal work.

“There will be a very small percentage that in the end might look at Tonga and want to live there. The old scheme didn't have integrity.”

Watch Lord Fakafanua's full interview below.

He says institutions such as the Ombudsman and Anti-Corruption Commission can hold the government to account and reduce the risk of corruption.

Pohiva remains sceptical, saying Tonga’s past shows why strong warnings are justified. She also raises concerns about foreign companies handling national assets, pointing to the failed TongaSat satellite deal, where a private company kept the revenue instead of the state.

“We have good reason to be very sceptical about this proposal given our track record,” Pohiva says. “The people of Tonga need to be aware of these things and it's not a good look that the newly elected PM is already talking and pushing for this just a few days after his election.”

She also questions the timing, saying the proposal is being promoted just days after a new Prime Minister was elected.

Listen to Teisa Pohiva's full interview prior to the 2025 Tonga general election below.

Fakafanua says the deal is still at an early stage and cannot move forward without public consultation and approval by Parliament.

He says the debate should not be driven by fear alone. “I think there's a lot of scaremongering based on the negatives of the old scheme, but there's a lot of opportunity here that we shouldn't discount.

“I think if done properly, it would bring a lot of benefit to the country. And that's what we want in the end and so we shouldn't be scared to try new things, especially if the opportunity presents itself.”