Tongasat allowed to proceed action against Kele'a and PSA [1]
Tuesday, May 26, 2015 - 17:58
The Friendly Islands Satellite Communications Ltd (Tongasat) was allowed to proceed with causes of action including defamation claims against Laucala Pohiva, Mateni Tapueluelu, the Public Service Association (PSA) and four others for publishing its tax documents.
The Friendly Islands Satellite Communications (Tongasat) Ltd., Semisi Panuve and Lucy Anna ‘Ilaiu brought the civil action against Laucala Pohiva, Mateni Tapueluelu, Paula Mafi, ‘Ofa Vatikani, Mele ‘Amanaki (PSA Secretary-General), the PSA and “John Doe” (an unknown person).
On 19 May, Lord Chief Justice Paulsen in a ruling did not strike out any Tongasat’s claims against the defendants but directed it to file a further amended statement of claim with 42-days from the date of this ruling to address the issues identified.
On the other hand, he struck out claims made by Panuve and ‘Ilaiu against all the defendants and dismissed the plaintiff’s application that the defendants be complelled to attend a cross-examination and preliminary discovery.
The causes of actions of defamation, malicious falsehood, conversion claim and breach of confidentiality are against the publishing of Tongasat's tax documents in various articles on the Kele’a newspaper and in PSA press releases.
The Chief Justice said Tongasat was the executive agent for Tonga in managing its orbital slot positions while the second and third plaintiffs were its Managing Director/Marketing and Finance Directors.
The first four defendants are involved in one way or the other with the Kele’a newspaper, while John Doe is a person unknown named in the proceeding in the expectation that his/their identity will be become known in due court, he said.
Complaints
He said a letter dated February 1, 2013 by the Deputy CEO at the Commissioner of Revenue’s office to a tax agent for Tongsat advising an objection by Tongasat to a 2010/2011 income tax assessment had been disallowed. The result was that Tongasat had owed $12,135,941.13 in income tax.
Prior to August 11, 2014 the letter was delivered to the Kele’a office by a person unknown who slipped an envelope containing the letter under the office door.
A copy of the letter with other documents relating to Tongasat and its tax affairs was separately delivered to PSA in the same manner. The person or persons who delivered the documents to the Kele’a and PSA is unknown to the plaintiffs and to the first to sixth defendants, he said.
The plaintiffs in their claims stated there were articles published in the Kele’a that included one detailing the content of the letter saying that Tongasat had unsuccessfully sought a tax exemption on money received from the sale of orbital slots and that the outstanding tax due for them to pay remain unchanged.
“The kernel of the cause of action is that the defendants falsely and maliciously published in the first, second and third matters complained of that Tongasat owed $12,000,000 in tax arrears. There is no pleading as to what Tongasat’s actual tax position was other than it was not as disclosed."
Chief Justice Paulsen directed the defendants to file a statement of defense to the plaintiffs’ further amended statement within 28 days of receipt.
“I will convene a directions conference immediately upon receipt of the defendants’ statement of defence or earlier upon application of either party,” he said.
The hearing was held on March 31 and April 1 this year at the Supreme Court in Nuku'alofa.