25 Aug 2004

PNG court orders suspended MP to pay bank US$4m

1:13 pm on 25 August 2004

A Papua New Guinea court has ordered a suspended MP and his two wives to pay almost four million US dollars to the Papua New Guinea Banking Corporation.

MP Peter Yama and his wives had failed to repay a bank loan taken out in September 1997.

The terms of the loan named the three as guarantors and agreed that the bank, now called Bank South Pacific, could debit their accounts to pay back the money.

Mr Yama's lawyer, has challenged the National Court's judgement in the Supreme Court on the grounds that the presiding judge did not have the authority to enter such a judgement.