The Tonga Development Bank (TDB) has been granted Court permission to challenge the Governor of the National Reserve Bank’s decision to dismiss its CEO and Chairman, the bank has claimed.
As Kaniva News reported previously, the Tonga National Reserve Bank (TNRB) has permanently banned Development Bank CEO ‘Emeline Tuita from holding any position with the TDB.
The Reserve Bank also wanted to remove the Development Bank’s chairman, Peni Vea.
The Development Bank said this evening it believed the decision on May 17 to sack Tuita and Vea was unlawful.
“We are pleased to advise that the Court has granted leave for the Court to review the directives”, the TDB said in a statement.
“Additionally, the Court has issued an injunction prohibiting the Governor and the National Reserve Bank of Tonga from disseminating any further information to the media or any other third parties regarding these directives”.
It was just the latest in a string of controversies and disputes.
As Kaniva News reported previously the Reserve Bank accused the Development Bank of endangering the economy.
It said the Development Bank had behaved imprudently.
“One of the primary functions of the NRBT is to regulate and supervise banks and to ensure that they promote and conduct sound and safe banking practices,” the Reserve Bank said.
“The NRBT is also responsible for keeping the prices of goods and services stable and inflation low, managing of the foreign reserves and exchange rates and combating money laundering.”
The Reserve Bank said earlier the TDB was conducting unsafe and unsound banking practices which could threaten the financial system.
Police raided the Development Bank on May 24.
Police said they were responding to a complaint about an alleged breach of the Banking Act.
In turn, the Development Bank said it was taking legal action against the police.
