The Supreme Court has ordered a multi-million pa’anga payout in a case involving the Tonga Development Bank and the Reserve Bank.
The Tonga Development Bank, CEO ‘Emeline Tuita and Board Chair Penisimani Vea sought damages from the Reserve Bank, its governor and media workers Katalina Tohi, Tevita Motulalo and Kalino Latu of the New Zealand-based Kaniva News.
The damages claim related to the broadcast and publication of extracts from a letter written by the Reserve Bank Governor to the Minister of Finance on May 17, 2024 on the subject of Regulatory Actions being taken by the Reserve Bank against the Tonga Development Bank, its CEO Tuita and Chairman Vea.
The letter reported on what were said to be serious concerns about the Reserve Bank and included an order to remove the CEO and Chairman from their roles in the TDB.
The plaintiffs sought damages for loss of profit, general damages and exemplary damages.
Action against Kalino Latu was not proceeded with.
Lord Chief Justice Bishop ordered the plaintiffs to file a defence within 28 days of the claim being lodged on August 6.
Because the plaintiffs did not file a defence in time, lawyers for the TDB and the other plaintiffs asked the court to issue a judgement in default against all the defendants except Latu.
The four defendants named in the writ of claim, who were ordered to pay the damages are the National Reserve Bank of Tonga and its Governor Tatafu Moeaki (total $15 million), independent Tongan broadcaster Katalina Tohi of Radio 89.5fm (total $4 million), and Nuku’alofa-based journalist and news editor, Tevita Motulalo ($1.2 million).
The Lord Chief Justice awarded general damages to the Tonga Development Bank, ordering payment of TP$5 million against Moeaki and the Reserve Bank, TP$1 million against Tohi and TP$300,000 against Motulalo.
Judge Bishop awarded general damages to be paid to Penisimani Vea, ordering payments of TP$2 million against Moeaki and the Reserve Bank, TP$1 million against Tohi and TP$300,000 against Motulalo.
General Damages were awarded in favour of ‘Emeline Tuita, ordering payments of TP$3 million against Moeaki and the Reserve Bank, TP$1 million gainst Tohi and TP$300,000 against Motulalo.
The Lord Chief Justice awarded damages of TP$5 million against Moeaki and the Reserve Bank, TP$1 million against Tohi and TP$300,000 against Motulalo.
Development Bank order
Meanwhile, as Kaniva News reported recently, the Supreme Court has ordered that the CEO and executive of the Tongan Development Bank are to remain in place.
The court ordered that the Development Bank not engage in any economic development activities and joint development agreements without the prior approval of the National Reserve Bank of Tonga.
The ultimate controlling interests of both banks are vested in the government of Tonga.
The National Reserve Bank of Tonga has all the functions of a central bank which includes important regulatory powers. Although the controlling interest of the Reserve Bank is the government it is a separate and distinct body from the Development Bank.
The National bank had sought to overide the Development Bank by issuing directives that, among other things, removed its CEO, Emeline Tuita and board chairman Pennisimani Vea.
Lord Chief Justice Malcolm Bishop KC, presiding, said the Reserve Bank’s actions were designed to ensure that it closely controlled the Development Bank and had a veto on any of that bank‟s activities.
The Development Bank asked for an interlocutory mandatory injunction restraining the National Reserve Bank from enforcing its directives.
The Lord Chief Justice said: ““I am not persuaded that the supervisory role of the reserve bank excludes supervision of the economic activities of the Development Bank.
“I accordingly order that will be the basis that the CEO and chairman continue in place pending the resolution of this matter at trial.”
