Yama denies obtaining loan with BSP

National, Normal


MADANG businessman Peter Yama claimed on Wednesday that he never took a loan from Bank of South Pacific (BSP) in 1999 and denied owing it K9.6 million.
“I have never put pen to paper and signed any loan during that period as I never had access to my accounts,” he told the court.
He said he had had no access to Yama Security Services (YSS) Company’s accounts since 2001 after the bank placed it on receivership.
Mr Yama said the only time he signed for a loan was in 1997 when he bought Smugglers Inn Hotel in Madang.
He claimed Motor Vehicle Insurance Ltd (MVIL) had used some fix-floating charges against him and described them as “falsified documents”.
Mr Yama was testifying in an action he initiated against MVIL for failing to pay him K7.6 million as ordered by the Supreme Court for breach of contract.
He told the court that he had never operated an account with BSP at the time when the fix-floating charges were produced and had never signed any documents in relation to the charges.
He added that the fixed-floating documents were prepared by Garth Mcllwain, who was a director of BSP at the time.
During cross-examination, MVIL counsel Greg Egen contended that Mr Yama owed the bank about K9.6 million.
Mr Yama replied that he had never had access to YSS accounts since 2001 and had no knowledge of how the K9.6 million came to be.
When Mr Egen said the fix-floating documents bore his signature, Mr Yama claimed that it was taken from some earlier documents.