The Appeal Court has dismissed an appeal by Clarence Ngwele and Isleno Leasing Company Limited against the Republic of Vanuatu.

The decision was issued by the Appeal Court on Friday 14, August.

Clarence Ngwele is the Director and shareholder of Isleno, an aircraft leasing company that has business history with Air Vanuatu Limited.

The appellants had claimed damages over a 2018 Commission of Inquiry (COI) report and comments made by then Minister of Justice Don Ken when the report was released.

The Commission of Inquiry investigated allegations of fraud, theft and breaches of fiduciary duties involving Isleno Leasing and Air Vanuatu Operations Limited.

The Court found that the Minister’s comments were defamatory because they could give rise to an imputation that there were reasonable grounds to suspect the appellants had been involved in corruption.

However, the Court ruled the comments were made on an occasion of qualified privilege, given the public interest in the Commission of Inquiry and Air Vanuatu, in which the Government was the major shareholder.

“The public had an interest in receiving the Information provided by the Minister and the occasion was one of qualified privilege,” Chief Justice Vincent Lunabek stated in the Appeal Court written judgment.

The Court also found the appellants had failed to establish malice or an improper motive by the Minister.

“We reject the appellants’ case that the respondent owed them a duty of care. Even if it did, the appellants have not established a breach of duty,” the Judgement further stated.

It said there was no sufficient basis to establish such a duty and no plausible evidence that the inquiry was not impartial or thorough.

The Court therefore dismissed the appeal.