The Tonga Amateur Sports Association and National Olympic Committee is bankrupt, according to the country's Prime Minister, 'Akilisi Pohiva.
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Radio Tonga reports that Mr Pohiva told the national parliament the government had lost faith in the operations of TASANOC, because it is has no money and is unable to function properly.
He said the association is unable to pay off its electric and water bills or any of its debts.
The Prime Minister also claimed TASANOC failed to report to international organisations on how they manage and use the funds allocated from international sporting committees.
The Minister of Internal Affairs and Sport, Fe'ao Vakata, told the house, that staff within TASANOC alerted the government to the issue.
But the Oceania National Olympic Committee rejected claims that TASANOC is bankrupt.
The Oceania National Olympic Committee's Secretary General, Ricardo Blas, was in Nuku'alofa as one of the observers during the Emergency General Meeting of TASANOC on Thursday.
He told Radio Tonga that any member of the Committee will never be bankrupted, because they operate under the wing of the International Olympic Committee, who provides funding for all operation of its member countries.