K3 billion UBS loan

A five-man Supreme Court bench delivered its ruling on Thursday over the reference that was put to the high court for interpretation of 11 questions.

The 11 questions referred for interpretation was over the alleged improper borrowing of K3 billion from the Union Bank of Switzerland by the government to buy shares in Oil Search Ltd as well as the alleged improper tender and procurement of consultants in relation to the borrowing taken out by the government in 2013.

A three-man Supreme Court bench consisting of Deputy Chief Justice Sir Gibbs Salika, Justice David Cannings and Justice Stephen Kassman in a unanimous decision ruled that Polye has standing or the legal capacity to challenge the government’s decision in court through a Supreme Court application filed under section 18(1) of the Constitution.

They were of the view that Polye raised significant constitutional issues. They said he has the right to challenge the decision as he holds a public office and is a member of parliament.

This application was moved by Polye’s lawyer, Loani Henao before a three-man Supreme Court bench, asking the court to allow a Constitutional application to be heard saying he has standing or rights as an MP and citizen to bring such applications.

Henao made submissions before the court today saying Polye has sufficient interest in bringing such applications which raises significant constitutional issues.

 This is in the case Opposition Leader Don Polye re-filed, challenging the legality of the government’s decision to acquire the K3 billion from the Union Bank of Switzerland.

Polye’s lawyer, Loani Henao, appeared before Chief Justice Sir Salamo Injia today for directions.

The Court was told the appeal books that would be used in the case had not been filed yet.

Sir Salamo issued directions for parties to compile the application books before the court hears arguments on whether Polye can bring such application before the Supreme Court.

The PM’s lawyer, Emmanuel Asigau of Pacific Legal Group, this morning appeared before the Supreme Court for directions with Polye’s lawyer Loani Henao.

Asigau told the court his client filed his response statements last week which will be served on Polye’s lawyer today.

Polye will now have two week to respond to the PM’s statements. Parties will return to court on Oct 3 for further directions.

State was granted leave to join in court on Monday during directions hearing. Other parties in the case are Prime Minister Peter O’Neill, the Ombudsman Commission, former Chief Ombudsman Rigo Lua, Acting Chief Ombudsman Phoebe Sangetari and Attorney-General Ano Pala.

The matter is expected back in court on Sept 5 for further directions, before a date for the hearing can be set.

On Aug 1, the high court received facts surrounding constitutional questions in the K3 billion UBS loan reference.

The reference is now before the fast track list of the Supreme Court and Chief Justice Sir Salamo Injia says he wants to see the case come to finality.

He told the court during directions hearing today that the referral judge has finalised the referral by signing off and providing facts surrounding the reference under section 18(2) of the Constitution. 

Certain constitutional questions surrounding the alleged improper borrowing of the K3 billion UBS loan by the government was referred to the Supreme Court for determination by the National Court on Jan 28, 2015.

The judge was requested to provide a statement of facts with the questions referred to the Supreme Court before the formal process begins for the reference.

The K3 billion UBS loan reference is before the high court under section 18(2) of the Constitution.  

Chief Justice Sir Salamo Injia today issued directions requesting Justice Catherine Davani to formalise the process, after the referral was made by the National Court On Jan 28, 2015.