The Fiji Development Bank has demanded that the Native Land Trust Board pay $3 million to the FDB which was loaned by businessman Ballu Khan and the company Vanua Development Corporation.

Prime Minister Commodore Frank Bainimarama said he has been informed about the matter and the case has been taken to court after FDB demanded NLTB to repay the loan because the NLTB, which is supposed to be the trustee of native land, acted as the guarantor for the loan.

Bainimarama raised his concern on why the former administrators of NLTB guaranteed the loan to only one individual who does not own native land.

While speaking in Dawasamu, the Prime Minister said the current NLTB administration does not want to repay the loan as it said that they are not the ones who guaranteed the loan in the first place and the legislation which they operate under does not allow the guaranteeing of such loans.

The NLTB has now taken the matter to court.

Meanwhile, Bainimarama also revealed that a known provincial council building currently rented by the government only belongs to 4 chiefs from that province and the land belongs to a few Indo-Fijian businessmen.

This has come to light after the government made the decision to move out of the building soon.

The chiefs then raised concern that the government's decision to vacate the building will lead to losses for the provincial council.

However, Bainimarama said when the government conducted the check on the ownership of the building, it was then discovered that the people from the province do not own the building and it is a private deal amongst some chiefs and businessmen.