MALAITA Premier Peter Ramohia has refuted claims his Government illegally borrowed $12.6 million and is repaying the loan with a 20 percent interest.

In Parliament last year, the Minister for Provincial government and institutional Strengthening, David Tome, informed the House that Malaita Province had “illegally borrowed $12.6 million since 2013.”

Mr Tome also said Malaita “continues to repay up to now with $1.9M still outstanding, interest rate by the lenders of 20 percent.”

No action has been taken against members of the provincial government, the Minister said.

Former Governor of the Central Bank and Chairman of the Public Accounts Committee, Rick Hou said “it’s a serious matter, as the lenders are not registered.

“Only registered lenders like bank can lend money. If any man convicted on this kind of borrowing, you can pay a fine of $3000/day for each day the business continues

Attorney General James Apaniai said at the time the “(province cannot use grants to repay illegal borrowing because its purpose is different.”

He said while there is no law to “criminalise” Members of the Provincial Government, the only remedy “is for the minister to suspend the province or take … actions under the Leadership Code Commission.”

But Premier Ramohia hit back at his critics yesterday, accusing Minister Tome of “misinforming Parliament and the people of Malaita Province and this nation on our real situation.”

In a message posted on the social media network, NATIONAL MALAITANS, the besieged Premier said:

“As far as Malaita Provincial Government is concerned, I can honestly and truthfully say that we have NOT illegally borrowed any $12.6M and paying off this amount with 20 [percent] interest rate (how am reading this post). I deny this as TRUE,” he said.

“Unfortunately our good Minister has misinformed Parliament and the people of Malaita province and this nation on our real situation. It is very SAD when the Ministry responsible for our Provincial affairs can come out publicly with untrue information about our Province. Clearly our Minister and his PS (Permanent Secretary) have not consulted us on this matter to get the right figures before informing Parliament and the nation.

“Anyway, I appreciate all your comments frens (friends). Rest assured Malaita Province is getting over this situation very soon,” he said.

While many are still cynical of Premier Ramohia’s explanation, others have rendered their support.

“Me surprise lo people no savvy duim basic research before talk talk…what kind school of thought na oketa graduate lo hem???…Speculation and secondary information that are not real are killing us all day long…Thank you premier for taking your time in this informal forum to have conversation with us,” one supporter said.

Sources said the amount of $12.6 million comprised unpaid statutory charges such National Provident Fund contributions, PAYE tax and so on.

Malaita Province has lagged behind in meeting these costs because of late payments of provincial government grants by successive National Governments.