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December 6, 2021
Business News

Madang Businessman Peter Yama Files K2.7b Lawsuit

 By Mickey Kavera – EMTV News, Port Moresby

Madang businessman Peter Charles Yama on Friday last week filed a lawsuit against Bank South Pacific (BSP), alleging that the bank has been involved in corporate fraud.  

This has resulted in Yama losing most of his business assets under the Yama Group of Companies.

He said the bank, without his knowledge, imposed fixed and floating charges on all his business assets in the year 2000.

Yama said then Managing Director, Garth McIlwain, was charged by the state to enforce two allegedly fixed and floating charges on May 6, 1999.

However, the National and Supreme Court in its earlier decisions in 2011 and 2014 found that due process was not followed in executing the fixed and floating charges, and that Mcllwain did not have the authority to sign the documents, as he was not an employee of the bank at that time.

The matter was settled, with BSP paying Yama K7.6m in damages.

He is now pursuing the matter by suing the bank for a further K2.7 billion.

His lawyer, Ben Lomai, said the writ of summons covers in detail particulars of defamation or injury to reputation, negligence, ill-will and malice by the bank towards Yama.

BSP has responded saying the claims made by Yama and his group of companies arise out of events which first came about in 2000.

They have already been the subject of numerous court proceedings and this claim, like the earlier claims made by Yama, will be vigorously defended.

The bank considers the further claim to be vexatious and all allegations of wrongdoing are denied. 

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