The Tonga Development Bank is trying to reassure its customers after police raided its headquarters and its CEO was sacked.
Tonga Development Bank. Photo/Kalino Lātū (Kaniva Tonga)
It said customers could be fully confident that the bank was financially well positioned and claimed “confidential communications” with the Reserve Bank had been deliberately leaked.
The National Reserve Bank has permanently banned Development Bank CEO ‘Emeline Tuita from holding any position with the TDB.
Any replacement appointment will have to be approved by the Reserve Bank.
In a statement last week the Reserve Bank said the Development Bank had breached the single borrower limit, had a high percentage of non-performing loans, had weak liquidity and was not complying with regulatory directives.
The Reserve Bank said if the Development Bank continued with these practices it would drain the bank’s profitability, threaten the safety of its customers and threaten the financial system.
The Reserve Bank said it no longer had confidence in the Development Bank’s management or board resolving these concerns.
Last Friday, May 24, Police raided the Development Bank.
Police said they were responding to a complaint about an alleged breach of the Banking act. They said it would not say anything further to protect the investigation.
In response, the Development Bank issued a statement reassuring its customers.
“We wish to assure our customers that your investments continue to be safe with TBD,” the bank said.
“TDB has filed legal proceedings against the police on the basis that TDB believes the warrant was obtained and executed unlawfully by the police.
“TDB has dealt with this issue through the proper channels and in a professional manner to ensure Tonga’s only locally owned bank continues to serve the kingdom and its people.”
The Development Bank said its liquid asset ratio was 15%, three times the required minimum.
It said it maintained a risk-weighted capital position of 23%, well above the required 15% minimum.
For more information
Police launch investigation into Tonga Development Bank after complaints
EDITOR’S NOTE: An earlier version of this story said the number of MPs who signed the “Parliamentary Resolution” was 14. The correct number is 18. It also said it was Parliamentary Resolution circular number 58/A-2018. The correct resolution number was 60A/2018.
The names of Tongan MPs who signed the controversial circular letter that approved a pay rise dating back three years to 2018 can now be revealed.
A copy of the Parliament Resolution document number 60A/2018, seen by Kaniva News, which was apparently issued to solicit the MPs’ signatures was dated May 22, 2018.
The document appeared to be an A4 sheet folded in half. One half contained a list of four points describing the requirements which sought the MPs’ approval.
It was signed by the Chief Clerk Gloria Pole’o and it bears two different stamps of the Legislative Assembly.
It suggested that MPs, whose names were listed in a table on the other half of the document tick boxes with labels “loto ki ai” (agreed) or “’ikai loto” (disagree). More boxes were made available beside their respective names for their signatures and dates.
Eighteen MPs who signed the circular were:
Lord Tu’ilakepa
Semisi Kioa Lafu Sika
Pōhiva Tu’i’onetoa
Penisimani Fifita
Semisi Tauelangi Fakahau
Sione Vuna Fa’otusia
Akosita Lavulavu
Lord Tu’ivakano
Lord Vaha’i
Lord Tu’i’afitu
Lord Tu’iha’angana
Lord Nuku
Lord Fusitu’a
Tevita Lavemaau
Mo’ale Finau
Siaosi Ofa Ki Vahafolau Sovaleni
Samiu Kiuta Vaipulu
Vātau Hui
Only one MP who rejected the resolution, signed and ticked disagreed was Losaline Mā’asi.
The rest of the 27 MPs did not sign the document and left the boxes blank. No reason was recorded for why they did not sign.
This included:
Lord Fakafanua
Samuela ‘Akilisi Pōhiva
Mateni Tapueluelu
Saia Ma’u Piukala
Poasi Mataele Tei
Tevita Tu’i Uata
Lord Ma’afu
Veivosa of Life Taka
Secretive approach
Parliament previously told Kaniva News that using the circular to seek MPs’ approval and endorsement outside the Legislative Assembly was a long-standing communication procedure used by the Speaker’s office.
However, after Kaniva News leaked details of the pay hike to the public, it triggered an outrage with many calling it an old-fashioned way of communication that should not be used anymore on matters that required decisions to spend millions of dollars of taxpayers’ money.
Many called the circular “secretive” and said Parliament should no longer use such procedure.
The most recent revelation came after the king called for transparency on government’s spending.
His Majesty also called on Parliament to monitor and check government spending and ensure that the grassroots benefited from all government services and projects.
“Government is answerable to the people who elected them into Parliament,” the king said.
“Parliament needs to monitor how government uses taxpayers’ money in accordance to the law”.
He also asked why the government was operating and managing its Lulutai airlines in “secrecy”.
Court decision
The pay hike has been recently the focus of the Court of Appeal after MP Māteni Tapueluelu fought unsuccessfully to declare it unlawful at the Supreme Court.
The Court of Appeal was told that the resolution approving the pay rise was passed by way of circulars in breach of the Rules of Procedure of the Assembly and Clause 62 of the Constitution.
It was argued that there was no provision in the Rules for the use of circulars and that the resolutions should have been put formally to Parliament via motion by an MP so they could be debated.
MP Tapueluelu argued that as a result the resolutions were unlawful and of no legal effect.
The Speaker and the Legislative Assembly applied for a declaration that the Supreme Court had no jurisdiction in respect of the MP’s claim. They contended that the Court had no jurisdiction to inquire into the internal proceedings of the Assembly and that, to do so, would breach common law privileges of the Assembly.
It was further argued that Clause 90 of the Constitution permitted the Court to inquire into the internal proceedings of the Legislative Assembly only where the Constitution had been breached. It was also argued that Clause 62 of the Constitution had not been breached.
However, as Kaniva News reported on Monday, the Appeal Court released its decision in favour of the Speaker.
It said the Supreme Court had jurisdiction in all cases in law and equity arising under the Constitution and the laws of the Kingdom of Tonga.
There was no justifiable basis for the intervention of the Court. The Assembly was given wide powers under Clause 62(1) to make its own rules for the conduct of its business and the Speaker had been given the primary role of interpreting and applying the Rules whenever any question arose. His decisions were final and it was not for the Courts to function as a form of review.
“Given the constitutional importance of Parliamentary supremacy and the doctrine of the separation of powers, we are satisfied that leave to bring judicial review proceedings in this context should only be given where a compelling case is established to warrant the grant,” the Court was told.
A Tongan man and a woman who died in a crash involving two cars colliding head-on have been remembered fondly by their families and friends.
Ofufangavalu’s relatives remembered her online as “forever young and beautiful … our first love”. Photo/Supplied
An elderly couple died in one car has been identified as Paul and Lois Grimmer, Stuff reported.
The three people in the other vehicle were Piata Ofufangavalu, Cheyene Love-Mitchell and Suliasi Lefai.
An online user by the name Asena Tautala Lefai, who identified herself on social media as Suliasi’s mother, lamented her son’s death.
“My son it is 2.38am now I just woke up thinking that you are sleeping for work, or you are still staying up gaming. ‘Oiauē! how it happened that you have left me”, she wrote in Tongan.
‘Asena said her son’s death has been a “horrible loss” to their family and one they struggle with daily.
“I felt overwhelming love for you”, she wrote on Facebook.
“Our home is absolutely silent my unforgettable son!”
One post said Otufangavalu was “forever young and beautiful… our first love”.
“Heartbroken for the whaanau, arohanui”, another comment read.
She was being taken to the high school’s O-Tāwhao Marae at 2pm, according to an outline of her tangi which will end with a burial in Ngunguru, near Tutukaka in Northland on Sunday.
It is understood ‘Otufangavalu’s father is Tongan.
“We will update you all as we finalise her arrangements”, another post said of ‘Otufangavalu.
“We ask for your patience and consideration as we work through this difficult time”.
Waikato road policing manager Inspector Jeff Penno told media on Wednesday morning that one of the cars had crossed the centre line, resulting in a head-on collision.
“We understand the time it happened, where it happened, how it happened – but we don’t know why it happened,” Penno said.
Suliasi’s mother said her son’s death has been a “horrible loss” to their family and one they struggle with daily.Photo/Supplied
Police would check whether either driver was impaired.
“While we always look at the environment, early indications are that roading factors on this particular piece of road are not at fault.
“Impairment is always something we look at, to ensure all drivers are sober, not just alcohol but illegal and legal drugs and that is certainly a focus of this accident.”
The Serious Crash Unit had conducted a “meticulous scene examination” on Tuesday night.
“And the findings from that examination and forensic evidence obtained will feed into a crash investigation, which is likely to take several months,” Penno said.
The crash happened at 4.44pm on Tuesday on State Highway 3 in Ōhaupō, about halfway between Hamilton and Te Awamutu.
Earlier, he said the cause of the crash could go unknown for months.
The Court of Appeal has dismissed an appeal against a ruling over a motion for a vote of no confidence in Prime Minister Hu’akavameiliku.
Hon Hu’akavameiliku
This is the second time the Court of Appeal has ruled on a legal action against the actions of the Legislative assembly.
On September MPs Dr. ‘Uhila-moe-iangi Fasi, Mateni Tapueluelu, , Dr. ‘Aisake Valu Eke, Paula Piveni Piukala, Kapeli Lanumata, Dr. Taniela l. Fusimalohi and Mo’ale Finau filed an application to bring judicial review proceedings against the decision of the Lord Speaker of Parliament, Lord Fakafanua and the Legislative assembly.
This followed the tabling of a motion of no confidence in the Prime Minister on September 5, 2023. The plaintiffs argued that:
They were denied their right to debate the motion on a vote of no confidence in the Prime Minister, which amounted to a breach of Clause 62 (2) of the Constitution.
The defendants broke their oaths to uphold the Constitution they were obliged to take pursuant to Clause 83 of the Constitution; and
That upon the vote on the Motion not to debate the vote of no confidence, unelected members voted, contrary to Clause 51 (6).
Judge Cooper dismissed their application for a judicial review on January 8, 2024. Judge Cooper accepted a submission that the Court had no jurisdiction to hear the application for judicial review by virtue of the doctrine of Parliamentary privilege unless there had been a clear breach of the constitution.
The appellants argued that in allowing the motion for the vote without debate on the motion the rules of procedure of the Assembly were not followed and, in consequence, there was a breach of clause 62 of the Constitution.
The MPs also argued that:
There was a breach of Clause 83 of the Constitution in relation to the obligation by Members to uphold the Constitution.
The Court failed to mention Clause 90 of the Constitution.
There was a conflict of interest by Hon. Hu’akavameiliku in introducing the verbal motion in the House seeking an immediate vote.
There should be a full hearing to contest the evidence.
The Court of Appeal found that there had been no breach of Clause 62 and that there was nothing to support any failure by Members of the Assembly to fulfil their oath. The court was satisfied that no purpose would be served by requiring a full hearing with further evidence.
None of the grounds of appeal were established and the appeal was therefore dismissed.
For more information
Supreme Court rejects Parliamentarians’ call for judicial review, but says House still has internal procedure to resolve dispute
A Tongan man has been identified as one of the five victims killed in two-vehicle crash on State Highway 3, north of Te Awamutu, near Hamilton, New Zealand.
Police confirmed the three occupants of one vehicle and two occupants of the other vehicle all died at the scene.
Various posts shared on Facebook this morning identified the Tongan victim by the name Suliasi Lefai.
Here is a screenshot of a post on Facebook which identified one of the victims as Tongan.
“Fly high Suliasi”, another post read.
The posters have been contacted for further comment.
Waikato road policing manager Inspector Jeff Penno said the crash was a “tragic accident”.
One of the cars had crossed the centre line, resulting in a head-on collision, Penno said.
“We understand the time it happened, where it happened , how it happened – but we don’t know why it happened”.
“At this stage, we don’t know why it occurred. We know one vehicle crossed the centre line and collided with the other. We know exactly where that happened, and it was clearly across the centre line, but we don’t know why,” Inspector Penno said.
Emergency services were called to the crash on State Highway 3 in Ōhaupō, between Te Awamutu and Hamilton, at 4.44pm yesterday.
Here is another screenshot of a post on Facebook which identified one of the victims as Tongan
“To lose five lives in these circumstances is heartbreaking, and our thoughts go out to all the families affected.”
And police are “well down the path” towards formally identifying the victims, Penno added.
“Out of respect for the families, who are starting a long and painful journey, I don’t wish to comment any further on that.
“But all family members have been advised.”
He echoed comments from Waipā Mayor Susan O’Regan this morning.
Waipā mayor Susan O’Regan said the road isn’t particularly dangerous – but it is busy.
She said it’s not a particularly dangerous stretch of road – but it is busy.
“It’s not a high-risk road in the Waikato,” Penno said.
“We have a number of high-risk roads… This piece of road is not one of those roads.”
Police will be investigating whether drugs or alcohol played a role: “Impairment is always something we look at.”
Asked about the cars themselves, Penno said “they were not five star [safety rated] vehicles”.
Early indications are that “excess speed was not a factor”, he continued, adding “the physical scene” meant police officers couldn’t determine if all occupants of the vehicles were wearing seat belts – though “some certainly were”.
The area is a 100km/h zone. Penno said “the question would be whether the speed limit is appropriate for that stretch of road”.
The crash occurred as the country gears up for a long weekend, celebrating the King’s Birthday holiday.
Penno urged drivers to be careful and warned that anyone breaking the rules this long weekend should expect to be caught.
The Court of Appeal has approved an appeal by the Speaker of Parliament and the Legislative assembly against MP Mateni Tapueluelu against two decisions of Parliament.
Speaker Lord Fakafanua. Photo/Fale Alea ‘O Tonga
Tapueluelu was granted leave to bring proceedings for a judicial review in the Supreme Court challenging the validity of two resolutions of the Legislative Assembly which granted MPS and Parliamentary staff a 14% pay rise backdate to 2018.
The resolutions were passed in 2018 and a decision to implement them was made on 14 June 2022.
The 2022/2023 Appropriation Act included an additional TOP$6.7 million to cover the pay rises and for a cost of living adjustment for civil servants.
Tapueluelu declined to accept the pay rise at issue.
The Court of Appeal was told that the resolution approving the pay rise was passed by way of circulars in breach of the Rules of Procedure of the Assembly and Clause 62 of the Constitution.
It was argued that there was no provision in the Rules for the use of circulars and that the resolutions should have been put formally to Parliament via motion by an MP so they could be debated.
Tapueluelu argued that as a result the resolutions were unlawful and of no legal effect.
The Speaker and the Legislative Assembly applied for a declaration that the Supreme Court had no jurisdiction in respect of the MP’s claim. They contended that the Court had no jurisdiction to inquire into the internal proceedings of the Assembly and that, to do so, would breach common law privileges of the Assembly.
It was further argued that Clause 90 of the Constitution permitted the Court to inquire into the internal proceedings of the Legislative Assembly only where the Constitution had been breached. It was also argued that Clause 62 of the Constitution had not been breached.
On August 24, 2024, the former Lord Chief Justice Whitten KC refused the challenge to the court’s jurisdiction. The judge granted the MP leave to proceed and required the Speaker to file a statement of defence by September 22, 2023.
The Speaker filed an appeal against the ruling and were granted a stay of execution of the proceedings in the Supreme Court pending the final determination of their appeal.
“In England, it is well established that the validity of an Act of Parliament is not open to challenge on the ground that its passage through the House was attended by any irregularity,” the Court of Appeal was told.
“This has been the case since at least the promulgation of Article 9 of the Bill of Rights 1689 which provides that the freedom of speech and debates or proceedings in Parliament ought not to be impeached or questioned in any Court or place out of Parliament.
“The principle that the courts do not intervene or adjudicate upon the internal proceedings of a Parliament is based on the supremacy of Parliament and consideration of comity between the legislature and the courts. Each is ordinarily expected to operate within their respective spheres.”
However, the Tongan Privy Council ruled that the Legislative Assembly did not have the privilege of supremacy over the courts enjoyed in the United Kingdom.
“It follows that in determining its jurisdiction to inquire into internal proceedings of the Assembly it must apply the English common law regarding the privilege of Parliament to determine the regularity of its own proceedings, provided of course the Assembly has not acted contrary to the provisions of the Constitution,” the Court of Appeal was told.
The Supreme Court had jurisdiction in all cases in law and equity arising under the Constitution and the laws of the Kingdom of Tonga.
There was no justifiable basis for the intervention of the Court. The Assembly was given wide powers under clause 62(1) to make its own rules for the conduct of its business and the Speaker had been given the primary role of interpreting and applying the Rules whenever any question arises. His decisions were final and it was not for the Courts to function as a form of review.
“Given the constitutional importance of Parliamentary supremacy and the doctrine of the separation of powers, we are satisfied that leave to bring judicial review proceedings in this context should only be given where a compelling case is established to warrant the grant,” the Court was told.
“To do otherwise would tend to undermine the wide powers for the Assembly to govern its own procedures under the supervision of the Speaker as well as the rationale for Parliamentary privilege.
“We understand the concerns of the respondent that the approval of expenditure at the very substantial levels involved in this case ought to have been debated in the Assembly.
“However, the opportunity under clause 62(2) to propose a motion for such a debate was available, but not pursued. Importantly, clause 19 of the Constitution provides that expenditure of public money must be authorised by the prior vote of the Assembly or by legislation. The latter occurred in this case with the passage of the Appropriation Act.
“We are satisfied that Clause 62(2) of the Constitution was not breached in this case for the reasons given. It follows that the application to dismiss the respondent’s proceeding on the ground that the Court has no jurisdiction by virtue of Parliamentary privilege must succeed.
“We observe however that if the practice of the use of circulars as described is to continue, it is obviously desirable that the Rules of Procedure be amended to authorise them and the circumstances in which they may be invoked.”
Emergency services are responding to a serious crash near Te Awamutu.
The two vehicle crash occurred on State Highway 3 / Ohaupo Rd just before 4.45pm.
Police said in a statement that multiple people have been injured.
Media including Stuff and Newshub are reporting several people have been killed.
St John said three ambulances, two rapid response vehicles and two operations managers have attended, but did not say how many patients were being treated.
Fire and Emergency said three trucks from Te Awamutu and Chartwell also responded, and one remains at the scene.
Ohaupo Road is closed between Jary Road and Ngaroto Road and motorists are asked to avoid the area.
Paramedics said it was obvious Karori man Rau Tongia had been dead some time when they arrived.
Tongia was killed on Percy Dyett Drive in the early hours of 20 December, 2020. A murder trial is under way in the Wellington High Court over his death, with five women accused of being involved. The Crown alleges Tongia was shot while he slept.
The Crown has begun calling witnesses.
Paramedics from Wellington Free Ambulance said they received a callout around 8am on the morning in question.
One of the first paramedics to respond said he observed that the patient’s jaw was stiff, indicating he had been dead for some time.
Another said his pupils were not reacting to light.
The paramedics also recalled seeing a significant amount of blood on Tongia’s mattress, the left side of his torso and a large wound on his back.
The police officer in charge of securing the scene where Tongia was found, Daniel Scott, said there were visible injuries and blood all over the body.
Scott said particles found in the torso during the postmortem indicated a shotgun had been used to kill Tongia, with shotgun wadding then found.
Environmental Science and Research scientist Dr Helen Poulsen, who examined a blood sample from Tongia’s body found the presence of alcohol, tetrahydrocannabinol and gamma hydroxybutyrate.
The alcohol was well above the legal limit, measuring at 143 milligrams per 100 millilitres. The legal limit is 50 milligrams per 100 millilitres.
Four of the five women accused – Shayde Weston, Breeze Hunt-Weston, Louise Kelly Hume and Pania Waaka – on Monday pleaded not guilty to murder. The fifth defendant was not present due to health reasons.
A man last year was convicted in relation to the Tongia’s death, found guilty possession of a firearm and sentenced to four-and-a-half months’ community detention and 12 months’ intense supervision.
Power cuts and damage are possible for the upper and western North Island from this evening, NIWA is warning.
MetService has issued strong weather warnings – Auckland, Coromandel Peninsula, Taranaki, and coastal Waikato will be worst affected.
Heavy winds, rain and possible thunderstorms are forecast for parts of the country into Wednesday.
And a NIWA spokesperson said winds of more than 100km/h were expected.
“The strongest gusts are likely over coastal & elevated areas,” a post on X said.
“Localised power cuts and damage are possible.”
MetService has issued nine warnings or watches affecting Auckland and a part of Waikao in the north and extending as far south as Stewart Island.
Souwesters may hit gale levels in exposed places in parts of Auckland, including Great Barrier Island, from 4pm tomorrow.
MetService said on X gusts could reach 110km/h and might be accompanied by “gusty thunderstorms”.
People were being advised to secure outdoor items such as wheelie bins and trampolines.
The strong wind watch also takes in the west coast of Waikato north of Kawhia Harbour, the Coromandel Peninsula and the Kaimai Range.
Western Taranaki from Urenui to Hawera may also be in for a similar dose of strong winds from 2pm tomorrow.
Heavy rain is forecast to move up the west coast of both islands also and reach Auckland and Northland later in the day.
There are snowfall warnings for three areas in the South Island also – Milford Road (SH94) from 10pm, Lindis Pass (SH8) and the Crown Range Road, both from 1am. Falls are expected to range from 1cm to 4cm.
Coastal parts of Clutha and Dunedin around the Otago Peninsula, coastal parts of Southland and Stewart Island are all expected to be affected by strong winds from around 8am.
A Police investigation is underway into Tonga Development Bank (TDB) following complaints, a statement said this morning.
Tonga Development Bank.Photo/Kalino Lātū
It said the Police are currently responding to a complaint regarding an alleged breach of Banking Act, though it is unclear which law was breached as the statement failed to mention any to back its claim.
However, it said the Police would provide no further details “in order to protect the integrity of the investigation and to ensure fairness.”
“This matter is under active investigation.”
The news was the latest twist in the TDB controversy.
As Kaniva News reported last week, reports claimed TDB chief executive ‘Emeline Tuita and board of directors chairman Peni Vea had been allegedly stood down.
We previously reported that the bank had faced speculation and controversy surrounding a proposal to construct a luxury centre on royal land in Tonga.
We reported claims that the Cost Low Company has filed an application for an Injunction on a Mortgage Notice issued by TDB.
The dispute appears to date from a meeting in March last year between Tonga Development Bank CEO Emeline Tuita and the head of Royco Group, owners of Cost Low, Charlotte Cocker Tu’i’ile’ila.
It is understood, the Governor of NRBT, Tatafu Moeaki, had proposed to bar Tuita and Veafrom returning to office.
Yesterday, TDB released a statement claiming it “Inquiries regarding interactions with National Reserve Bank of Tonga”.
It said the move was regrettably made after confidential communications had been leaked.
“We regret that confidential communications between NRBT and TDB have been deliberately leaked, causing grave misconceptions and unnecessary confusion among our customers and the public.”
“These matters should remain confidential and handled professionally and via the proper channels to ensure confidence in the stability of the country’s financial system is maintained.”
The bank claimed it is “on track for another year of strong profitability”, with a Liquid Assset Ratio of 15% and Risk-Weighted Capital position of 23% “well above the statutory minimum of 15%”.
They said: “TDB’s customers can have full confidence that TDB is financially well-positioned to continue serving the Kingdom as its only locally owned bank.
“TDB’s major shareholder has committed to injecting additional capital to support our growth strategy.”
