An investigator from the Asian Development Bank (ADB) has arrived in Tonga to conduct an internal review of the Tonga Development Bank (TDB) following growing government concerns over its operations and management.
The move comes after Deputy Prime Minister Taniela Fusimalohi alleged that TDB had breached loan limit policies, while the Minister of Public Enterprises Piveni Piukala claimed that a $14 million investment, intended to support low-income businesses, had mostly been loaned to higher-income individuals.
Emeline Tuita, the CEO of TDB, previously refuted the government’s allegations against the bank.
The Prime Minister said the investigation was important, as the government wanted to ensure that any money it invested in institutions like the bank was secure and beyond doubt.
He confirmed the investigator’s arrival yesterday and stated that the assessment would cover the bank’s overall governance, including the role of its board of directors.
“The government sees this as urgent—to bring the bank back to its proper function,” the Prime Minister said in Tongan.
“The investigator has the experience, skills, and tools needed to assess the situation thoroughly.”
He said the Development Bank is government-owned, and people’s money is invested in it. He said the investigation aims to restore confidence in the bank’s ability to fulfil its core functions.
“The investigator will also examine how the board controls the bank and provide recommendations on any necessary changes,” the Prime Minister added.
The Prime Minister said public concern over TDB’s operations has been mounting, with critics arguing that the current situation could undermine its primary duty to serve citizens.
The ADB’s findings are expected to guide reforms to ensure transparency and accountability in the bank’s future operations.
The government has yet to announce a timeline for the investigation’s completion, but Eke said swift action is a priority to stabilise the institution.
Disputes
The probe follows a recent legal dispute between TDB and the National Reserve Bank of Tonga (NRBT), both state-owned institutions.
The Prime Minister expressed relief after the court allowed TDB to withdraw its lawsuit against NRBT, calling the legal action unnecessary and stating that it should not have happened.
