The latest information on pearl farming in Tahiti

It is one of the strangest episodes in Polynesian pearl farming. In 2012, the government triumphantly announced a technological revolution: a one-of-a-kind sorting machine capable of automatically grading Tahitian pearls. Five years later, the dream has turned into an administrative nightmare.

“We are facing a textbook case of mismanagement,” denounces Marcel Tuihani, spokesperson for the current government. The General Inspectorate of Administration (IGA) has been tasked with shedding full light on this embarrassing affair.

The Secrets of a Phantom Contract

Investigations reveal:

• 40 million XPF committed for a prototype never delivered
• 20 million XPF already paid to the American company Ritco
• No patent filed and no proof of concept validated

“No one has ever seen this so-called machine in operation,” confides a senior maritime official.

2012: The Year of Suspicious Payments

Payment timeline:

• 14 million XPF in May 2012 (35% of the contract)
• 6 million XPF in October 2012 (an additional 15%)
• 50% paid before any proof of feasibility was provided

The minister at the time, Temauri Foster, still defends his initiative: “We had to innovate to maintain our technological edge.”

An Investigation That Promises to Be Explosive

Key points under review by the IGA:

• Absence of a technical specification document
• Lack of control over advance payments
• Possible undeclared conflict of interest

“All those responsible will have to be held accountable,” warns the public prosecutor.

A Scandal That Tarnishes the Maison de la Perle

This fiasco adds to a series of setbacks:

• Structure dissolved in 2013 after only three years of existence
• 200 million XPF in cumulative deficit
• 7 employees laid off amid controversy

“This machine was our last hope to justify our existence,” laments a former executive.

Toward International Legal Action?

Options under consideration:

• Filing suit in the U.S. against Ritco
• Legal action against the contract signatories
• Recovery of misused public funds

“We will use every possible legal recourse,” assures the current Minister of Finance.

Scandal by the Numbers

→ 40 million XPF committed → 0 machine delivered → 5 years of investigation ahead → 1 pearl sector still seeking credibility

Contrary to some circulating reports, the closure of the institution will take place in December 2013 — not in August. This additional delay gives employees five months to prepare for their professional transition.

Regarding the 2013 budget allocated to the institution, the announced 735 million XPF includes a special subsidy of 500 million XPF. This funding had originally been earmarked for the creation of the SEM Tahiti Pearl Consortium under the previous administration. The Ministry recalls that the autonomist groups Tahoeraa and A Ti’a Porinetia voted for the dissolution of this SEM, which was deemed too costly given the country’s current budgetary constraints.

Today, the Maison de la Perle employs eight people. Among them, one person is seconded from the administration and will soon be reinstated in their original department. The other employees are undergoing dismissal procedures that will strictly comply with labor law, with special care given to ensuring each person is treated fairly and respectfully.

The Ministry emphasizes its commitment to managing this transition in accordance with social regulations and pays tribute to the dedication of the teams who have worked to promote Polynesian cultured pearls through this organization.

This decision, led by the Minister of Marine Resources Tearii Alpha, was validated during a recent session of the Council of Ministers.

Charged with promoting and legally protecting the Tahitian pearl, the institution was also tasked with sorting, classifying, and evaluating pearl production. However, many industry professionals had expressed reservations about its effectiveness. With an annual budget ranging between 250 and 300 million XPF — peaking at 735 million in 2013 — the usefulness of the institution had been seriously called into question.

The dissolution of the Maison de la Perle is part of a broader desire to “rationalize public action,” explained Vice President Nuihau Laurey. He reminded that the majority of the institution’s functions had previously been handled by the Directorate of Marine Resources, which will now take over these responsibilities. In a context of fiscal austerity, the government opted for this reassignment to keep public spending under control.

The Vice President also announced that other public institutions are currently under review for potential cost-saving measures. Three entities are receiving particular attention for possible dissolution or partial privatization. The executive intends to complete this review before the end of the year as part of the Growth Pact discussions with the State. Reducing public spending has been set as a priority, and targeted privatizations could be implemented depending on the conclusions of the ongoing evaluations.

More than 250,000 pearls were sold, generating revenues close to 330 million XPF.

Organizers celebrated an impressive success rate, with 83% of the lots sold and a total of 255,250 pearls purchased — a level never reached in previous editions. This success confirms the growing enthusiasm for Tahitian pearls in international markets.

The final day, Tuesday, July 30, marked the culmination of an entire year’s work for the dedicated players in the pearl industry. The auction recorded a turnover of 325.4 million XPF, representing a gain of over 6% compared to the initial reserve prices.

On the buyers’ side, Polynesian purchasers dominated transactions, accounting for 34.84% of sales, closely followed by Hong Kong at 34.48%. Japan completed the podium with 25.29% of the purchases.

A total of 47 buyers registered for this seventh edition, 38 of whom completed purchases. The majority were from small pearl farming operations, illustrating the vitality and diversity of this key sector for the local economy.

Buoyed by this resounding success, organizers and buyers are already set to meet again from November 10 to 12 for the 8th edition of this auction, which promises to be just as promising.