Category: Legislation

Established on February 8 by French Polynesia’s assembly, the Tahiti Pearl Consortium (TPC) public-private venture—intended to revive the pearl industry—now struggles to secure the remaining 15% private investment needed to launch operations. With its future hanging in the balance, a decisive ministerial ruling is expected by week’s end, while the Pearl Producers’ Professional Union (SPPP) prepares legal action.

Critical Roadblocks:

• Funding Gap: Despite government covering 85% of the 590M FCFP capital, private stakeholders (mostly pearl farmers) have failed to raise their 90M FCFP share (reduced from initial 45M FCFP minimum)
• Legal Threat: SPPP’s impending administrative court challenge cites unfair competition with existing 30-year industry structures
• Leadership Void: Key investor Franck Tehaamatai (willing to contribute significantly) is currently incarcerated on unrelated charges

Controversial Approval & Operational Doubts:
✔ Passed by slim 28-24 assembly margin
✔ Complex mandate spanning entire pearl production chain alienated potential supporters
✔ Signed letters of intent (Feb/March) failed to translate into notarized financial commitments

Industry Backlash:
SPPP Vice President Aline Baldassari-Bernard states: “Small/mid-sized producers lack funds for this venture. The TPC threatens established systems without offering viable solutions.” Farmers view the SEM as redundant given existing frameworks like the Maison de la Perle.

With neither funding nor consensus materializing, the TPC risks becoming a stillborn initiative—whether through financial collapse or judicial intervention. The coming days will determine if this controversial project can overcome its existential challenges.

The Tahiti Pearl Consortium (TPC) public-private partnership, approved by French Polynesia’s assembly on February 8, now faces significant hurdles in its search for private investors to complete its 590 million FCFP capital structure (85% already held by the government).

Key Challenges Emerge:

• The “Hands Off My Pearl” collective has called for a boycott, citing lack of transparency
• No clear business plan has been presented to potential investors
• Even participating pearl farmers expressed reservations about the TPC’s operational framework

Industry Demands:
Influential producer Franck Tehaamatai outlined strict conditions for his support:
✔ Greater private shareholder representation on the Board
✔ Conversion from SEM (public-private partnership) to SAS (simplified joint-stock company) structure with majority professional ownership
✔ Simplified corporate purpose statement
✔ More prominent role for industry professionals in operations

Critical Financing Gap:
The remaining 15% private investment (90 million FCFP) remains unsecured, with:

• No clear fundraising timeline established
• Concerns about government’s project management experience
• Farmers awaiting concrete next steps

“This top-down approach ignores decades of industry expertise,” Tehaamatai noted, capturing the sector’s growing frustration. With trust eroding before launch, the TPC’s viability appears increasingly uncertain unless fundamental changes are made.

The Tahiti Pearl Consortium (TPC), a public-private partnership aimed at revitalizing the pearl industry, was officially established during a territorial assembly session with 28 votes in favor and 24 against. While approved, the decision has sparked significant reservations and questions among industry professionals and even within the political majority.

Marine Resources Minister Temauri Foster, a staunch TPC advocate, has struggled to build consensus. Skepticism persists about the initiative’s ability to revive a sector that has been in crisis for years. Opposition members and the collective “Hands Off My Pearl” openly express dissatisfaction, citing:

• Lack of prior consultation
• Rushed implementation
• Absence of concrete guarantees
• No solid business plan

Key Concerns:
✔ Influential producer Franck Tehaamatai demands greater private shareholder representation on the Board
✔ Critics highlight the project’s troubled history, including its December court rejection
✔ The collective remains firmly opposed, doubting French Polynesia’s pearl farming future

Next Steps:
The TPC is set to gradually replace the Maison de la Perle, with ambitious growth projections through 2018. However, the real challenge lies in attracting private investors to cover 15% of capital (90 million FCFP).

“This political decision ignores industry realities,” warned a collective spokesperson. With trust eroding, the TPC’s success hinges on addressing these concerns head-on.

The Economic Affairs, Tourism, Agriculture, Marine Resources and Transport Commission of French Polynesia’s Assembly approved the creation of the Tahiti Pearl Consortium on Wednesday afternoon, issuing a favorable opinion on the draft deliberation.

The proposal passed with 4 votes in favor and 3 against, and could be presented during an extraordinary Assembly session as early as Thursday.

Key Provisions of the Draft Deliberation:

• Establishes objectives for the Tahiti Pearl Consortium (a public-private partnership/SEM)
• Outlines capital participation terms
• Government to hold 85% stake (505 million FCFP investment) – a significant departure from the original 51%-49% public-private split proposal

Consortium’s Mandate (replacing EPIC Maison de la Perle by 2014):
✔ Tahitian pearl marketing
✔ New market development
✔ Price structuring
✔ Production classification/valuation
✔ Legal protection of pearl products
✔ Local/international promotion
✔ Production coordination with pearl farmers

“This marks a pivotal restructuring for our pearl industry,” stated a commission member, while opponents criticized the lopsided public ownership. The Assembly’s final vote will determine whether this controversial model proceeds.

The Papeete Administrative Court has nullified the service agreement procedure for creating the “Tahiti Pearl Consortium.” This ruling now requires the Maison de la Perle – despite its status as a Public Industrial and Commercial Establishment (EPIC) – to comply with public procurement rules to finalize the agreement. Mandatory steps will include:

• Launching a competitive tender process
• Publishing official notices
• Ensuring proper competition among bidders

The cancellation follows an emergency pre-contractual appeal filed by:
✔ The Tahitian Cultured Pearl Dealers’ Union
✔ GIE Tahiti Pearl Auction

The decision comes as a surprise, particularly since:

• 500 million FCFP for project financing
• Fees for international expert Gaetano Cavalieri
  had already been allocated in French Polynesia’s 2013 budget.

Budget Assembly Debate
The Tahiti Pearl Consortium controversy dominated budget discussions, with:

• Government defending the project
• Opposition unsuccessfully attempting to redirect funds
  Key concerns focused on:
• Frequent project modifications
• Financial implications
• Complex funding structure
• Management uncertainties under the new framework

“This ruling reinforces procurement transparency, but delays critical sector reforms,” commented an industry observer. The decision leaves the pearl industry’s restructuring at a crossroads, with legal compliance now dictating the timeline.

The Papeete Administrative Court ruled this morning in favor of pearl industry professionals, annulling the service agreement procedure between Maison de la Perle and international consultant Gaetano Cavalieri.

This decision follows an emergency petition filed by the collective “Hands Off My Pearl,” which raised significant concerns about:

• Lack of competitive bidding
• Absence of public tender process
• Failure to meet mandatory public procurement requirements

Key Outcomes:
✔ The Tahitian Cultured Pearl Dealers’ Union and GIE Tahiti Pearl Auction prevailed as legal parties
✔ Court ordered Maison de la Perle to pay 150,000 FCFP in damages
✔ Future consortium plans must comply with public tender regulations

The ruling fundamentally disrupts the Tahiti Pearl Consortium initiative – an ambitious project to revitalize the pearl sector. Should Maison de la Perle wish to proceed, it must now:

1. Launch proper competitive bidding
2. Adhere to public procurement rules
3. Ensure transparent candidate selection

“This validates our fight for fair industry practices,” declared a collective spokesperson. The decision sets a precedent for governmental accountability in Polynesia’s pearl trade.

The collective “Hands Off My Pearl,” opposing the Tahiti Pearl Consortium’s creation, filed a lawsuit with the Administrative Court on December 4th. They challenge the agreement the Maison de la Perle was preparing to sign with international consultant Gaetano Cavalieri.

During the December 11th hearing, the court examined whether this agreement constitutes a public or private contract, given the Maison de la Perle’s status as a public industrial and commercial establishment (EPIC).

Key Legal Arguments:

• For Maison de la Perle: Me Robin Quinquis maintains the agreement is a common law contract not subject to public procurement rules, emphasizing the court should only review the agreement’s formal compliance, not the Consortium’s validity as a pearl industry tool.
• For the Collective: Me Vincent Dubois contends the agreement qualifies as a public contract requiring competitive bidding procedures. He argues the Maison de la Perle, despite its EPIC status, should be treated as a public administrative body.

The court’s decision is expected within the next 24 hours.

The consulting firm Gaetano Cavalieri & Co, commissioned by the government, has presented its plan to reorganize Tahitian cultured pearl production and marketing.

The Maison de la Perle is preparing to sign an agreement with the consultant – a move already drawing sharp criticism from industry professionals. The 65 million FCFP (tax excluded) project, with payments scheduled through July 2013, proposes creating the Tahiti Pearl Consortium, a mixed-capital central purchasing organization.

Pearl farmers have raised concerns about:

• Government overreach into what they view as a fragile economic ecosystem
• The consultancy’s high cost
• Potential emergence of a state monopoly threatening commercial independence

Designed to revive a struggling industry, the Tahiti Pearl Consortium proposal has deeply divided stakeholders:
✔ Professionals question its ability to genuinely revitalize the sector
✔ Government officials attempt to reassure about their intentions

This debate highlights the critical economic and political challenges surrounding Polynesian pearl farming’s future.

Customs officials at Papeete Port have intercepted 108kg of prohibited pearl nuclei intended for oyster grafting—the fifth such seizure in six months, bringing the total confiscated to 543kg. This rigorous enforcement underscores the critical importance of nuclei quality control for French Polynesia’s pearl sector.

The seized giant clam nuclei produce low-quality, commercially worthless pearls incapable of proper nacre development. Their use violates Decree 1240/CM (August 30, 2007) governing authorized nuclei standards. These five seizures represent approximately 435,000 banned nuclei that could have severely damaged Tahitian pearls’ premium international reputation.

At the Marine Resources Ministry’s request, customs authorities have strengthened inspections covering:
✔ Imported nuclei
✔ Domestic pearl circulation
✔ Export shipments

Advanced material identification technologies now support these controls through close customs-marine resources collaboration. The repeated interventions demonstrate Polynesia’s commitment to:

• Protecting its US$167M pearl industry
• Maintaining “Tahitian Pearl” brand integrity
• Complying with international environmental conventions

“Each confiscation preserves both our economic lifeline and marine biodiversity,” stated a customs spokesperson. With nuclei fraud evolving, authorities vow to intensify surveillance ahead of the key September export season.

On June 10, 2012, customs officers at Tahiti-Faa’a Airport intercepted a major smuggling attempt on ATN Flight 78 bound for Tokyo.

A Chinese pearl oyster grafter was caught carrying 1,449 high-quality black pearls, skillfully concealed in liquid soap bottles and a powdered chocolate box. The seized lot, valued at over 1,343,000 XPF, resulted in confiscation and substantial fines.

Weeks earlier, on NZ Flight 41 to Auckland, inspectors discovered 3,739 undeclared black pearls in a professional pearl driller’s luggage – including over 400 rejects. These decisive actions safeguard Tahitian pearls’ international reputation.

Customs’ vigilance extends beyond pearls. Since January, 430 kg of prohibited nuclei have been intercepted in express parcels. These nuclei, made from protected giant clams (regulated by the Washington Convention), violate Decree 1240/CM of August 30, 2007.

French Polynesian customs reinforce their critical role as guardians of pearl excellence. Rigorous monitoring of pearl/nuclei imports, exports, and domestic circulation remains paramount. Nineteen pearl-related cases recorded this year demonstrate the scale of illicit activity and the importance of customs penalties.

Facing threats to this economic cornerstone, Polynesian customs reaffirm their absolute commitment to defending Tahitian pearls’ quality and global prestige.