In 2020, the Ministry of Infrastructure (MOI) signed on a road works contract with Inter Pacific Ltd. In 2022, this contract was cancelled by MOI. Due to this cancellation, Inter Pacific Ltd took MOI to court where Justice Whitten KC on case CV66 2022, ruled that the Government of Tonga pay Inter Pacific Ltd for works done in accordance with the working contract. The Government of Tonga has not made any payments to today.
On the 27th April 2026, Justice Tupou KC, on case CV40/2022, delivered a verdict that Inter Pacific Ltd pay $2 million plus to Tonga Development Bank. This is related to a $4milion loan that the company took based on the road works contract with the Ministry of Infrastructure in 2020. Inter Pacific Ltd then appealed to the Court of Appeals of Tonga regarding the existing 2 different court verdicts on this same case. The appeal was submitted together with the application to ‘STAY’ the CV20/2022 verdict until the appeal case AC8/2026 is finalized.
On case CV66/2022, Justice Whitten KC delivered a verdict that the Government of Tonga makes payments to Inter Pacific Ltd for works completed. This has not been carried out by the Government of Tonga. On case CV40/2022, Justice Tupou KC delivered at verdict that Inter Pacific Ltd makes payments of $2milion plus to Tonga Development Bank as remaining balance of the $4 million loan that was based on the road works contract with the Government of Tonga. On the appeal case AC 8/2026 of the Court of Appeals, Inter Pacific Ltd is appealing, due to 2 court verdicts on the same case.
From the verdict delivered by Justice Whitten KC (CV66/2022), it is estimated that the Government of Tonga will be making payments to this company in several millions exceeding the $2 million plus that the Tonga Development Bank of Tonga is owed to by Inter Pacific Ltd.
The Court of Appeals has not finalized case AC8/2026 and due to this, it is with caution that details are provided at this point. But this has been put out as it has been brought up in the social media.
This however, brings up the same question – Is Tonga a country that can afford debts resulting from Government Performance, when currently at a Budget Deficit of $38 million for 2026 – 2027?
