3 Aug 2016

Tonga bank to mount legal challenge

10:43 am on 3 August 2016

Reports from Tonga say the Pacific International Commercial Bank will mount a legal challenge to the cancellation of its licence.

Last week the Tonga National Reserve Bank revoked the licence of the bank which is a partnership between Chinese shareholders and Princess Pilolevu Tuita.

Matangi Tonga reports the commercial bank's general manager Mishka Tu'ifua said it will urgently take legal action against the Reserve Bank over the cancellation because proper procedures hadn't been followed.

Tonga Reserve Bank

Tonga Reserve Bank Photo: Kaniva Pacific

According to the website, Mishka Tu'ifua said the Reserve Bank had reactivated a termination notice that it issued in January last year which was subsequently cancelled.

She had also sought to assure depositors their savings were secure.

The Governor of the Reserve Bank, Ngongo Kioa, earlier told Matangi Tonga the Pacific International Commercial Bank had failed to to honour a business plan, and had not submitted an audit report.

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