Cook Islands Times Weekly | Issue 178 27 November 2006

DEMO Bully boys push out rivals
Moves to restrict Aitutaki businesses hit all other Cook Islanders

An Aitutaki business cartel has bullied the Island Council to shut out all outside investors – unless they give up 50% shares in the business to Aitutakians.
The cartel – dubbed the ‘Aitutaki Mafia’ by some locals – is squirming in fear and using thug tactics to keep out foreigners and any non-Aitutakians.
At least 12 Aitutaki businesses (named below) have put the fear of foreign takeover into the minds of their Island Council by scaring them with cases of Filipinos, Indians, and Fijians, who have invested or developed businesses in Rarotonga.
What’s really scaring the ‘Dirty Dozen’ businesses, is local businessman George Pitt, who has embarked on a new venture in the wake of the recent snap election.
The discriminatory move stinks of political influence because of the Democratic Party-linked Aitutaki businessmen behind it.
It is protectionism and clearly goes against private sector development by shutting off open enterprise and competition. It puts everyone, who wants to pour money into Aitutaki, in the same boat.
A letter seeking restrictions, dated last Tuesday 14 November, was apparently rushed through and approved at an Aitutaki Island Council meeting held Thursday, just two days later.
The letter (see full details below) is signed by some but not all local businesses.
It says: “We must not allow outsiders and foreigners to start businesses here as we are putting unfair competition on our local businesses.”
Businessman Pitt is about to open an Aitutaki retail store at Amuri, offering competition and lower prices.
He is challenging the business stranglehold of what Pitt describes as local ‘mafia’ who have watched “The Sopranos”, the TV series about Mafia in America.
The campaign they have launched to block competition is “shamefully illegal, vicious and downright mafia-like,” Pitt said.
“It’s about time competition was allowed with the net result being the customer will be better off,” he said when asked for comment on Friday (see his full comments below).
Pitt said Democratic Party parliamentarian and businessman Junior Maoate leads the “local bully boy group” behind the moves against him and to restrict others opening businesses in Aitutaki.
“People in Aitutaki are fearful of his bully boy tactics and have told me that they had no choice but to sign the petition,” Pitt said.
Pitt, a Cook Islands Party election candidate, said the moves also have a political thrust. He has been “categorically told they are seeking a way to have me deported from Aitutaki altogether”.
Pitt said he was not advised of Thursday’s Island Council meeting which apparently approved the restrictions the letter wanted. Nor was he given a chance to respond to the claims made in it.
The information was manipulative and totally fabricated to create a fear motivation among the businesses, said Pitt.
Pitt said: “One council member told he had no problem with me operating a business in Aitutaki but that he was opposed to the two papaa men who I was in partnership with. That’s why he agreed to the strong-arm to oust me.
“Another council member I spoke to sarcastically laughed about it and claimed he was just going along with the ‘Ku Klux Klan’ mentality of the business group present at the meeting.”
Pitt said both council members pointed the finger at Democratic Party men Junior Maoate, Ron Maki and the Mayor Tango Herman as being the instigators of the move to have him banned from operating a business.
Legal adviser to Pitt, Kiikore Charlie, told the Cook Islands Times the business group seeking Pitt’s banishment has no legal basis. It could result in litigation against those involved.
Pitt was in Rarotonga on Friday seeking legal redress.
Pitt, who is also a church pastor, moved to Aitutaki from Rarotonga and challenged the Democratic Party power and business elite entrenched there.
FIRST he stood against Democratic Party Minister Kete Ioane in the general election, in Vaipae-Tautu, the least developed area of Aitutaki. Pitt lives in Vaipae and promised to help the people of the district.
THEN after cutting Ioane’s majority he took Ioane to court with an election petition alleging unlawful practises. A decision on this is still being considered by the Chief Justice.
NOW he is in the final stage of preparations to open his retail store at Amuri, a move which he says will bring competition and lower prices on Aitutaki.
Here in full is what the letter to the Island Council says and the response by Pitt to it and the apparent decision by the Island Council to approve what the letter wants:
1. WHAT
LETTER SAYS AND WHO SIGNED IT
The letter to the Mayor and Island Council on Aitutaki is signed by representatives of the following businesses:
- Maina Traders Superstore,
- R and R Maki,
- Poko Store,
- Aquila’ Store,
- Neibaa Trading,
- Te Ivi Maori Store,
- Oly’s Store,
- Spider’ Internet Café,
- Moana Creations,
- Blue Nun,
- MangoTrading
- Vonnia’s Nouvelle.
Two other companies whose names are typed at the bottom with space for their signatures have not signed. They are:
- TNM Ltd
- Four Square.
The letter says:
“It has come to our attention that there is in progress a retail food store opening in the Village of Amuri and possibly other areas of the island.
“We also heard this retail store is part of a proposal for a chain of retail food stores and similar to Seven Eleven in Rarotonga.
“George Pitt, who is not of Aitutaki descendants, and definitely an Outsider will own it.
“There are many dangers that will occur when this man is allowed to own and conduct business within our tiny island of Aitutaki.
“As an elected body of leaders in our community, this should be a concern to all of you as well.
“We should protect the interest of our local citizens and the role they play in keeping our economy growing. We must not allow outsiders and foreigners to start businesses here as we are putting unfair competition on our local businesses.
“These businesses are part of the backbone to our local economy and they must be protected.
“Almost 100 percent of local businesses have bank loans and other commitments that they have set up to establish themselves.
“These are done at high risk and many sacrifices. Foreigners coming in with possibly unlimited funds is like ‘cutting our own peoples’ throats’.
“We should always protect our local businesses and eliminate possible issues that will stop local businesses from succeeding.
“Rarotonga is an example of what is happening whereby Filipinos, Indians now and Fijians have set up businesses already established by locals, and some businesses have failed because of this.
“Aitutaki should learn from the mistake made in Rarotonga where this is happening.
“We request that this person George Pitt and any other foreigner that have attached themselves to the island, whether they have been given privilege of having PR or not, not be allowed to set up any business in Aitutaki.
“However, we realised that some of these foreigners are genuine and will support the development of the island and give back to the community.
“However, we suggest that the only way they can be allowed to do business in Aitutaki is to partnership, 50/50 ownership with a local partner.
“This should apply to all areas of the business sector whether it be retail/wholesale stores, lagoon cruises, accommodation and so forth.
“We must ensure that we protect and encourage our local people to develop our industry as it belongs to Aitutaki and Aitutakians should benefit from it.”
2. WHAT GEORGE
PITT SAYS
Pitt said Junior Maoate had recently been masquerading as a charitable do gooder when in fact his current actions are a clear demonstration that reveals the opposite.
“I am told he drafted the letter to the council and had his administrative manager take it around the businesses for their support and signature.
“People in Aitutaki are fearful of his bullyboy tactics and have told me they had no choice but to sign the petition.”
Pitt said he was not advised of the Island Council meeting prior to it being held and was never invited to answer some of the “so-called facts aired to the council.”
“In fact I was categorically told they are seeking a way to have me deported from Aitutaki altogether,” Pitt said.
“They have made contact with whoever in Rarotonga, including the Development Investment Board, to conjure up a way to achieve their corrupt intentions.
“I am grateful to those, who though few, stood up for what is right in the council meeting.
“It shows not all Aitutakeans are regenerated and power addicted.
“I’ve been told Junior Maoate and Ron Maki have suggested cutting off supply by their connections with wholesalers and the shipping operators.
“This shows how low those two men who have used their wives to front the anti-George Pitt campaign will go.
“I’m told there is a political thrust from the predominantly Democratic Patty businessmen.”
Business in Aitutaki is not in the exclusive ownership of self righteous thugs, said Pitt.
“It’s about time genuine competition was allowed with the net result being the customer will be better off.”
Pitt said: “Self appointed judge and jury Junior Maoate and Ron Maki along with Mayor Herman should be ashamed of themselves for using their positions to corruptly manipulate fearful people.
“Their anti-George Pitt campaign is shamefully illegal, vicious and downright mafiosa.
“It think they’ve been watching the Sopranos television series.
Member of Parliament Junior Maoate’s despicable efforts will not deter him, said Pitt.
He said: “Junior and Ron plus their devoted followers should just resign themselves to the fact I will reside and carve out a living for myself in Aitutaki as long as it suits me.
“Their self-appointed Godfatherhood doesn’t scare me. What we are now seeing is the real Junior Maoate, a greedy, vicious and vindictive person.

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