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KIRIBATI ELECTION UPDATE

MAAMAU PROMISED A CASH WINDFALL AND WON

By Rimon Rimon and Samisoni Pareti administration against cost blowouts.
“Caution is needed to minimise risks associated with cost
Kiribati gave Taneti Maamau a resounding victory at the is- blowouts allowed for by fishing revenues and reinforces
land nation’s presidential poll on 22 June, rewarding him with the need for a risk management framework to implement
a second four-year term. measures that support a sound fiscal framework,” said the
As the ruling Tobwaan Kiribati Party (TKP) leader, Maamau December 2019 Pacific Economic Monitor of the ADB.
polled 26,053 votes, about 59 per cent of total vote cast. His Opposition candidate Banuera Berina could not match the
rival Banuera Berina of the Boutokaan Kiribati Moa managed huge cash promises offered by his rival, which came close on
17,866 votes, winning majority votes in only seven out of the the heels of his complaints that the Chinese Government was
23 constituencies. publicly campaigning in support of Maamau.
Berina who was chairman of the TKP until he crossed the “China should respect our sovereignty as an independent
floor to the opposition late last year was no match it appears island nation,”Berina had told Islands Business in a telephone
to the promises of huge cash bonuses Maamau offered voters. interview on the first week of June.
The opposition gamble of putting up as their candidate “It should not be seen to be supporting and assisting one
someone who had been in the same party as Maamau back- particular political party in Kiribati. It appears that I am com-
fired, although there are others who would argue that the op- peting not against one but two opponents.”
position didn’t have much of a choice after its leader Titabu The Chinese Embassy in Tarawa refuted Berina’s claims
Tabane lost his seat in the parliamentary elections in April. saying that mainland China has as a matter of policy do not
Taking to national radio on the eve of the close of cam- interfere in any other countries’ internal affairs.
paign, the caretaker President unveiled a list of cash pay outs “China’s practice is upright and above board. Secondly, the
if voters renew his mandate to rule the central Pacific atoll embassy conducts official exchanges and promotes coopera-
nation. tion with the government of the receiving country.”
Voters responded in kind, giving him a clear lead of 8,187 Kiribati-China relations has been in the public limelight for
votes when the results of the vote was announced by Chief some time, since November last year when Maamau suddenly
Justice Sir John Muria on the morning of 23 June. announced that Kiribati was dumping Taiwan in favour of
With the new parliament not expected to convene for its recognizing China. He had accused Taipei of being unwilling to
first session until August, President Maamau has about one assist in the development needs of his atoll nation.
month to work on his numbers in parliament, as well as live Critics however say the i-Kiribati leader was angered by
up to his electoral promises. Taiwan’s refusal to buy one of two new single bodied Embraer
Civil servants will be entitled to a leave grant of AU$3000, jets his government had ordered from its Brazilian manufac-
whilst other employees in the private sector including commu- turer. China on the other had reportedly offered help.
nity and church workers qualify for a AU$1500 grant package, Going into the presidential poll, state radio had said that
and the expectations are that payment will be back-dated to both the ruling TKP and Berina’s opposition Boutokaan Kiribati
1 January. Moa had claimed equal support from the 44 members of
Copra producers (copra remains the main cash commodity parliament.
for i-Kiribati in the outlying atolls) were not left out in the Both leaders now face the challenge of keeping their num-
cash bonuses announced by Maamau. The new copra price will bers in the legislature intact, with President Maamau having
be $4/kg, up from the current $3.50 per kilo. What is called to face the added burden of delivering on his electoral prom-
the elderly fund will be paid out at $200 per month, and a ises, as well as avoiding a repeat of the widespread defection
$50 unemployment allowance will be available to those who in his party that saw the defeat of his budget on the floor of
qualify between the ages of 18 and 59. parliament in late 2019.
The ruling Tobwaan Kiribati Party also promised free educa- Helping the i-Kiribati leader has been the unprecedented
tion nationwide as well as free lunch for school children. growth in fishing license revenue from his nation’s large tuna
The last time the government doubled copra subsidies to fishing waters, and the Vessel Day Scheme (VDS) of the Parties
US$1.54 per kg in 2018, it ballooned government spending by of the Nauru Agreement of which Kiribati is a key member.
US$18.5 million, the Asian Development Bank said in its De- According to the ADB, prior to the VDS, average fishing
cember 2019 Pacific Economic Monitor. Increases in wages and license revenue was equivalent to 21.2% of Kiribati’s GDP. Post
salaries of government workers the same year also triggered VDS, this rose to 69.6% of GDP, pushing the country’s trust
a 30% increase in government spending, prompting the ADB fund known as the Revenue Equalisation Revenue Fund to soar
and the International Monetary Fund to caution the Maamau to over A$1 billion by late 2019.

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