By Katalina Siasau

No official statements have been issued by the Tonga Development Bank or the National Reserve Bank of Tonga (NRBT) regarding a reported move to sack the two top officials of the TDB this week.

The Governor of the National Reserve Bank of Tonga, Tatafu Moeaki, is understood to be invoking sections of the Banking Act to barr the TDB CEO, 'Emeline Tuita from holding any positions in the bank, and also to remove the Chairman of the TDB Board, Peni Vea.

Radio and social media in Tonga has reported that the Governor was concerned that the TDB was failing in its financial capacity and not meeting its obligations.

Radio Tonga reported today that the Chairman of the Board of TDB confirmed there was a letter from the Governor of the National Reserve Bank of Tonga to remove the officials. Broadcom 87.5 radio also reported on the letter.

However, when Matangi Tonga contacted TDB today, the Operations Manager Lata Kava said, "We are still working on the matter."

"What I know is that there was a letter from the NRBT Governor addressed to the Minister for Finance."

When Matangi Tonga asked about the context of the letter and what was directed, she said, "No further comment."

PM on state of TDB

Earlier the Prime Minister Hon. Hu'akavameiliku made a comment regarding the state of the Tonga Development Bank.

Answering questions about a perceived shortage of funds, he told reporters at a media briefing on Friday, 17 May, “It has not come to a point where the bank should be closed down, or for the Reserve Bank to take over.”

He said the Reserve Bank would make recommendations to the shareholders “on serious matters” regarding the Tonga Development Bank that they should look at.

TDB's main shareholders include the Government of Tonga, the National Retirement Benefit Fund Board, and the Retirement Fund Board.