Tonga Supreme Court Upholds CEO and Executive Board of Development Bank Amid Dispute

The Tonga Supreme Court has ruled that the CEO and Executive Board of the Tongan Development Bank will remain in their positions despite an ongoing dispute with the National Reserve Bank of Tonga. The court also imposed restrictions on the Development Bank, prohibiting it from engaging in economic development activities or joint ventures without prior approval from the National Reserve Bank.

The ruling stems from a conflict between the two financial institutions, both of which are under the control of the Tongan government. The National Reserve Bank of Tonga, functioning as the country’s central bank, holds significant regulatory authority, whereas the Development Bank operates separately but under government oversight. The National Reserve Bank had sought to assert control over the Development Bank by issuing directives that included the removal of the Development Bank’s CEO, Emeline Tuita, and its board chairman, Pennisimani Vea.

Presiding over the case, Lord Chief Justice Malcolm Bishop remarked that the Reserve Bank’s actions aimed to closely monitor the Development Bank’s activities and maintain veto power over its decisions. In response, the Development Bank sought a legal injunction to prevent the Reserve Bank from enforcing its directives.

In his ruling, Chief Justice Bishop acknowledged the complexity of the situation, noting that any decision would likely lead to difficulties. He expressed concern about the potential for friction between the two banks, stating that the challenge was not about balancing convenience but rather about minimizing inconvenience. Despite the risk of strained working conditions, he concluded that the CEO and chairman of the Development Bank should remain in their roles until the case is resolved at trial.

While recognizing the possibility of tension, the judge expressed confidence that both the National Reserve Bank and the Development Bank would handle the situation professionally. The ruling underscores the court’s cautious approach to ensuring continuity in leadership while the broader legal conflict unfolds.

Have you read?
World’s Best Countries To Invest In Or Do Business.
World’s Most Startup-Friendly Countries.
World’s Best Countries For Quality of Life.
Largest Economies Europe In 2024.
GDP of the BRICS countries (2000 to 2028).