The Supreme Court has made a garnishee order that all debts due or to be gained by Siosaia Moehau from Tonga Power Ltd up to a sum of $860,077.59 plus interest be paid directly to Westpac Bank of Tonga for his debts.

The application was filed by Westpac (applicant and judgement creditor) against Moehau (judgement debtor) and Tonga Power Ltd (garnishee).

Moehau is one of the Board of Directors of Tonga Power Ltd, a public enterprise. The order is being made to secure his earnings from the directorship for repayment of debts to the bank.

On 2 April, Lord Chief Justice Paulsen in Chambers made the garnishee order after having heard the bank’s application on March 26, 2015, for: “All debts due or accruing from the garnishee to the judgment debtor of up to the sum $860,077.59 together with interest at a rate of 10.40% from the date of this order until the said debt is paid in full.”

He said this was to satisfy an initial judgement obtained by Westpac on February 2, 2010 in the sum of $987,077.59 plus interest at the rate of 10.40% from October 26, 2012 to the date of payment of the judgement debt in full.

Tonga Power Ltd. was also ordered to appear before the Chief Justice on 1 May to show any reason why it should not pay to Westpac the debts due.

The Chief Justice ordered $600 pa'anga for the costs of the proceedings.

Public Enterprise

The board of Tonga Power Ltd. has six Directors and the Company Secretary. The appointment of directors to a public enterprise board is made with the consent of the Minister of Public Enterprises, Hon Poasi Tei and the Cabinet.

The Public Enterprises (Amendment) Act 2010 states the Minister with consent of Cabinet shall appoint persons as directors of public enterprises who in the opinion of the Minister will assist to achieve its principal objective.

Other requirements under the law are that a person who is an undischarged bankrupt shall be disqualified from being appointed as a director of a public enterprise. A director may also be removed from office by the Minister for reasons of incompetence, incapacity, bankruptcy and neglect of duty or misconduct among others.

However, because Tonga has no bankruptcy law, it is not possible for a person to be an undischarged bankrupt. At the same time public disclosure from board members is not a requirement for a seat on the board. This means that questions of whether the board member has been a director of any company which has been placed into receivership or liquidation, has any unpaid judgement debts, or has been a part to any legal proceedings for recovery of debts, are not answered before a person takes up a position of public responsibility.