The Government of the Kingdom of Tonga says it is confident with the level of due diligence that it carried out before executing the agreement with the Ngati Tahu Ngati Whaoa Trust (‘the Trust’) from New Zealand.
In a statement, the government says it sees no justifiable basis to change that position now.
The statement was issued in response to issues raised by the media in regards to the investment agreement recently executed by the Tongan Government and the Trust.
In respect of the judgment made by the New Zealand High Court against the current Chairman of the Trust, this was a private matter which does not in any shape or form relate to, or affect the Agreement that exists between the Trust and the Tongan Government.
The Government says it understands that the members of the Trust have full confidence in the current Chairman and his leadership and managerial abilities, and so the Tongan Government will continue to respect the office holders of the Trust.
The Trust has committed to the terms and conditions of the Agreement.
The Tongan Government says it is confident that its interests under the Agreement are protected, and that both parties have rights to remedies if required.
The Trust has been granted land leases and at least 50 years control over the former public enterprise Tonga Forest Products Limited.
The Trust represents two iwi and had agreed to pay just over US$4.4 million in return for management of the company for 50 years, with the option to renew for a further 25 years.