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CORRUPTION AND COVERUP BY THE PRIME MINISTER IN WESTERN PROVINCE.

June 19, 2017, 2:59 pm
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by WILLY GOINARENG

Nothing much has changed about the Character and nature of Peter  “ O’Steal” O’Neil  and Mr Jimmy “Gimme” ( or else I will screw you up!) Maladina, Philip “ Ever Elusive” Eledume, except a few grey fringes and receding hairlines.

Perhaps a little older and a little wiser , in the art and craft of deception and stealing from the public purse, a little smarter at using public offices for private gain. Same old dancers in their same old shoes.
The recent PNG Blogs article about Peter O’Neil  appointing Brian Pebo, his cousin as Administrator to Western Province was and is and will remain a subject of bad humor. Brian Pebo is from Pangia and is a cousin to Peter ONeill. He is named Brian after Peter ONeill’s own father Brian O’Neill. Peter appointed cousin Brian to look after the Western Province loot so that they can in the pretext of good government and administration loot the whole lot, or at least most.
Well, why not? No one is looking, and what people don’t know cannot hurt them, can it? That being the logic the same trio from NPF days in Jimmy Gimme Maladina, Peter O’Steal O’Neil and Philip “ Ever Elusive” Eledume, team up once again for a swan song at the expense of the people of Western Province before the fate of the government at the polls ever known.

What has been revealed by PNG Blogs is nothing short of breath taking. It shows a typical Jimmy Maladina operation, wherein the bureaucracy in Shadrack Himata and Daniel Rolpagarea are happily compromised by promises of more cash and trips to open the golden doors to the loot, only for Gimme Jimmy to carry it all away...of course not too far away, because standing and hovering right above Size 29 Gimme Jimmy and monstering everything in his trademark innocence is the ever distant Peter O’steal,  waiting for the lion’s share of the loot. Why? Because he is Prime Minister!
O’Neill has taken enough from the people of Western Province. He has taken full control of the massive Oktedi  Copper-Gold mine. He has taken over most of the lucrative contracts that he could easily lay his hot sticky fingers on. In the pretext of fighting PNG sustainable Development Company Limited over off-shore funds, he deported Dr Ross Garnaut and took over and politicized this massive mine for his personal gain.

Peter O’Neill was even prepared to turn a blind eye to the massive stealing that was taking place in Western Province revealed by PNG Blogs in around April 2014 under the caption “Massive Corruption in Western Province”,  simply because Ati Wobiro was his own Party man.
 Finally it took a no nonsense cop like Mathew Damaru to prosecute Wobiro, May and Dr Gumoi, and send them to jail.

What is more revealing about that PNG Blogs item by Tugiri Reida is that the people involved in that massive corruption in Western Province, reported in detail included Mrs Ruth Undi and Mr Wroxon  Undi of Ialibu Pangia,  and Mr Lohia Samuel of HanuaBada village, who, between them stole more than K7 Million from the people of Western Province. Tugiri Reida asked the question then in 2014, will Peter O’Neill prosecute Mrs Ruth “ Missing tooth” Undi and Mr Wroxon “Smiley” Undi, his relatives or protect them?

Well it has become clear the PM made up his mind not to take Ruth and Wroxon to court or hold them accountable for  Trust Funds they corruptly stole . He would probably say its not his job. Its the Police who are supposed to do that. A fair call?
Really??? Who exactly in the Police Force?  Mathew Damaru and his mob who were part of the “Sweep” Team? They were the team who successfully prosecuted and jailed the former Governor and his Provincial Administrator.  Damaru’s guns have been silenced in the process. The arrest warrant against the PM has been buried in unholy compromises. Everyone involved got paid out.

Word on the Street is that Wroxon Undi and Ruth Undi got to the Police Force with bags of cash to save themselves and one Mr Lohia Samuel from ever being prosecuted as a logical flow on from the jailing of Wobiro, Gumoi and May. If Wobiro Gumoi and May are in jail for corruption involving certain public funds, part of which went to the Undis and Mr Lohia Samuel, then Wroxon Undi, Ruth Undi and Lohia Samuel should be in jail too. There is no reason why these people would run around free while Wobiro Gumoi and May who are part of the same looting operation are in jail. It makes no sense.

Be that as it may, the compromising of the Police was an absolutely necessary development for Gimme  and  O’Steal  to set the stage, and clear the way for the next move, which was to rip off the Non CMCA Trust Funds under the Department of Mines and Shadrack Messach and one bloody bad Negro called Himata!

But where the hell are the Jettys Jimmy, his wife and Philip Eledume built in Western Province?
Answer me Jimmy Maladina, as you go to the polls in Milnebay Province, holding yourself out to people that you are a worthy candidate for Leadership of this country, tell us voters, what Jetty did you and Philip Eledume build in Western Province, say in Oriomo?

There is NO Jetty there Jimmy!

 So how can you demand Millions and Millions of Kina of money (over K51 Million) belonging to the poor people of Western Province be paid to you, your wife Janet Karl and Philip Eledume as outstanding contract dues for some fictitious Jettys and fictitious jobs done?  You deserve to go to jail and stay in jail Jimmy! Haven’t you people done enough damage to this country already?

You ,“Gimme” Jimmy, Ever Elusive Eledume and Peter O’Steal have stolen so much in NasFund, and got away with it. Thank God for Warner Shand Lawyers ( Counsel for Inquiry) and Sir Hugo who made it possible for the Inquiry to effectively cover up for Peter ONeill’s role in stealing from Nasfund.  Yes Prime Minister, we know what you did and who you paid off to cover up for you, and shift the blame to few hapless amateurs.  Dont worry your secrets are safe with us.

So Peter,  are you, Jimmy and Philip so determined to use Brian Pebo to screwed the welfare and future of the people of Western Province up once again for Millions of their money?
You turned a blind eye while Ati Wobiro was stealing.  You failed to prosecute Kerenga Kua whose law firm stole tens of Millions from Western Province, only because he was in your Cabinet.
You have now failed to prosecute Wroxon Undi and Ruth Undi  who stole millions from the people of Western Province to start an airline and insurance company because they are your relatives from Ialibu Pangia.

Mr Prime Minister, have you no shame? You are the conductor orchestrating the stealing of TRUST funds and covering up for past corruption.  You pay lip service about corruption, but it seems you should take a good look at yourself.

Tell me, why should this nation of 8 Million people trust you, and make you Prime Minister again?
How can we the people trust you with our and our children’s future Prime Minister?
No matter how the politics play out in a few weeks, the fact of the matter, known as the TRUTH, will stand out in the minds of all Papua New Guineans is that YOU AND YOUR FRIENDS NAMED HERE ARE NOTHING BUT COMMON THIEVES!

If you wish to differ from this view offered, then you are free to explain or respond with a counter perspective for the sake of the readership. However, be assured, that from what I have seen you will never change my mind.

You Peter,  Jimmy, Philip, Rolpagarea, Himata and even Lohia Samuel; the 8 million people of this country do not deserve you  slimy slithering snakes!  Call yourselves leaders? My very black fat arse!
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PNC CANDIDATE & FORMER NHC CEO FILMED WIFE HAVING SEX WITH COUSIN IN NHC CEO'S OFFICE

June 20, 2017, 3:57 pm
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PNC Party has been rocked again this week after a video has surfaced online which involves the wife of the former National Housing Corporation CEO and now PNC candidate for Sinasina Yongomugl, JOHN DEGE, who is having sex on camera in the office of the National Housing Corporation CEO's with another man being filmed by the former NHC CEO himself.

The sex scene took place inside the Office of the Managing Director and furnitures that are in the office are correctly identified. The voice of the man behind the camera is John Dege himself directing his wife MARIAH SUCKLING DEGEhow to go about with the man who has been identified as her cousin.

The PNC Party list of sexual infidelities and perverted mentality includes theDeputy Prime Minister and East New Britain Regional Member, Leo Dion, who  has a formal police complaint laid against him on allegations of incest, abuse of trust and persistent sex. The complaint was formally laid against him with the Sexual Offence Squad (SOS) in Kokopo, at the Kokopo Police Station on February 7, 2017.  However, he has not been formally arrested and charged. This is because the East New Britain Provincial Police Commander Joseph Tabali has allegedly refused to effect the arrest and formally charge him in accordance with the police protocol requirements involving prominent figures and leaders. Tabali has instead reprimanded the OIC SOS Kokopo, Sergeant Joe Bimaru for attempting to bring in Dion for questioning.

Samarai Murua MP and PNC candidateGORDON WESLEY had sexual relations with his own two daughters. He abused his two girls when they were much younger. With a constant supply of cash as MP for Samarai-Murua and with o electoral duties or responsibilities, he has the wit and charisma to charm his own blood daughters to perform sexual favours for him. Over time the younger one became pregnant twice and has two kids from her own father and PNC Candidate and sitting Member for Samarai-Murua Mr. Gordon Wesley.

The former Parliament Clerk and Attorney General Ano Pala took over his son's wife, chasing out the son and taking over his wife marrying her and becoming the father to his own grandkid and now fostering a healthy relationship with his son's wife. 

Jim Simatab, who is also Correctional Services Minister seems to be very busy having extra marital affairs with young Tolai girls who are young enough to be his child or grandchild.

VOTE THEM ALL OUT IN 2 WEEKS FROM NOW
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THE MIDAS TOUCH: HOW PETER O’NEILL AND HIS ASSOCIATES HAVE MADE A KILLING – PART 1

June 21, 2017, 3:29 pm
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by PNGI
In tandem with his political career, Peter O’Neill has built an extensive business empire with interests in almost every sector of the economy and assets worth many hundreds of millions of Kina.
The Midas Touch is an in-depth investigation by PNGi into the Prime Minister’s business empire and how it has been interwoven with his political career.
The Midas Touch is based on months of digitally assisted analysis of several thousand corporate records, hundreds of official documents and media reporting.
The Midas Touch is presented in four parts:

  1. The Secret Millionaire: Inside the O’Neill Empire
  2. The Snag: Peter O’Neill Inc meets Don Sawong and Tos Barnett
  3. Lift Off: High office is good for business
  4. Contagious Good Fortune: Who else has profited?

THE SECRET MILLIONAIRE: INSIDE THE O’NEILL EMPIRE

Like no other contemporary political leader, US President Donald Trump has focused global attention on the tensions that emerge when a billionaire, possessing a vast business empire, assumes high political office.
But what happens when this vast business empire is largely hidden from the public eye?
For over a decade, Peter O’Neill has built a prolific public profile in Papua New Guinea, which has become synonymous with his ascendancy to the peaks of political power. Beyond these political feats, the public is broadly aware O’Neill enjoys sizeable corporate interests – few know, however, the full depth and breadth of his business empire.

An in-depth investigation conducted by PNGi has uncovered over 100 different corporate entities, directly or indirectly linked to Peter O’Neill. The most conservative estimates value O’Neill’s business empire at over K250 million.[1]
Even then, caution must be exercised. Evidence presented by two commissions of inquiry indicate that O’Neill, and his legal team, use proxy shareholders and trust arrangements, which have the effect of concealing his beneficial interests from public view.
The network map below gives a visual impression of the scale and extent of O’Neill’s corporate connections, which have been uncovered.

Network Map: Peter O’Neill’s business empire.
This expansive network of companies, and associated business partners, has put the Prime Minister into situations, where his political position and private interests appear to converge in ways that prompt a range of questions.
In the past, some of these questions have been explicitly raised by legal authorities, mandated to oversee commission of inquiries. The answers delivered cast Peter O’Neill as an adept businessman who – in league with a network of close affiliates – has illegally exploited governance weaknesses within state and statutory bodies, to ingratiate his own businesses; nefarious activities which he hides through proxy shareholders. They also portray a man who has benefited from having allies in key positions of public and private power.
O’Neill rejects these accusations. And would point to a failed prosecution attempt in 2007. His critics on the other hand, would argue an underfunded and inexperienced prosecution service was simply unable to execute commissions of inquiry findings, produced by well-resources, and far more experienced, judicial authorities, including Tos Barnett and Don Sawong.
Nevertheless, the fact remains Peter O’Neill has until very recently enjoyed business interests in a diverse range of sectors, including:

  • Aviation
  • Retail
  • Property management
  • Funeral services
  • Construction
  • Information Technology
  • Mining support services
  • Hotel management
  • Financial services
  • Hospitality
Managing such a wide range of private interests, while steering government, is a task fraught with complex governance challenges.
Set against this backdrop, PNGi’s special investigation aims to illuminate the vast business empire belonging to one of Papua New Guinea’s most successful Prime Ministers. The investigation does not contest the right of politicians to have private interests outside public office.
However, it does look to concentrate attention on the complex ethical questions that emerge when these interests are so vast and largely hidden, they become entangled with the exercise of political power.
It also questions whether Peter O’Neill has judiciously ensured that his own private empire, and close personal network, conduct their affairs in a way that upholds public respect for the Prime Minister’s office.
The first instalment in this investigative series – The Secret Millionaire – takes us inside the O’Neill Empire and reveals for the first time something of the nature and extent of his business interests, his key associates, his brushes with the law and how his private interests may have benefited from political decision making.

The presentation is divided into three parts:

  • Act I Getting by with a little help from his friends: O’Neill’s education, first forays into business and how his first political appointments, under Prime Minister Bill Skate, almost led to his downfall.
  • Act II On the rise – the O’Neill empire has a growth spurt: How, post Skate, O’Neill’s business network flourished and then continued to grow after he entered Parliament and served in various Ministerial positions.
  • Act III Having your cake and eating it too! How O’Neill’s businesses have profited from government decision making and the largess of foreign actors during O’Neill’s second and third terms in Parliament as he ascended the heights of political power.
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Footnote
[1] The Midas Touch – Part III
ACT I: GETTING BY WITH A LITTLE HELP FROM HIS FRIENDS
First Steps
Peter O’Neill was born on 13 February 1965, in the Ialibu-Pangia district of the Southern Highlands Province. His father, Brian, was an Australian ‘kiap’ from Melbourne. O’Neill’s mother, Awambo Yari, was a local woman from Pangia.[2]
O’Neill grew up in his mother’s village, Paiyomari, and attended schools in Pangia, Ialibu and Goroka. After high school he left for Port Moresby to study at UPNG. He completed a Bachelor of Accountancy and Commerce degree in 1986. [3]
A year later, O’Neill initiated his business career, at the age of 22. Initially, this occurred under the tutelage of another former Australian ‘kiap’, Virgil Counsel, who had arrived in PNG during 1948, a year before Peter O’Neill’s father.[4] Counsel made O’Neill a minority shareholder in Trans PNG Services Pty Ltd in August 1987. Two-years later O’Neill was appointed director and secretary, positions he held until 1996, according to Investment Promotion Authority (IPA) records.
In August 1987, O’Neill also became a director and company secretary at Pangia Enterprises Limited. IPA records do not reveal the original shareholders, but by January 1989 Peter O’Neill is listed as a shareholder and in 2009, he acquired sole ownership.
In 1996, Oscar Wandi Yamuna joined the company as a director, marking the beginning of a fifteen-year business relationship, according to IPA records. Yamuna is referred to in a 2007 commission of inquiry report as Peter O’Neill’s ‘alleged…first cousin’.[5]O’Neill’s then wife, Cheryl, also joined the company as Director.[6]
While the seeds of O’Neill’s future business empire germinated, he cultivated a professional career. During university, O’Neill worked at the international accountancy firm Coopers & Lybrand[7] (now Price Waters Coopers), before joining Maurice Pratley and Associates[8]  in 1988.
O’Neill qualified as a certified accountant the following year. He then became a partner in Pratley and O’Neill.[9] During 1990, O’Neill was appointed President of the PNG Institute of Certified Accountants.[10]
In 1993, Pratley and O’Neill was dissolved.[11] O’Neill began to focus on running his own businesses, splitting his time between Goroka and Port Moresby, with interests in trade stores and real estate.
During this period Peter O’Neill forms key business relationships with a number of allies, some of whom will stay with him during his entire business and political career. The evidence from commissions of inquiry suggest this is part of a pattern of behaviour. O’Neill surrounds himself with close friends and family, creating a trusted network of allies spread across public and private positions, which is then leveraged to gain competitive advantages.

Network Map: Peter O’Neill’s key business associates 1987-2001

In 1992, for instance, Peter O’Neill set up, Hunter Real Estate Limited in Port Moresby. He is listed as the company’s director, shareholder and secretary.[12] O’Neill’s close family friend, Maurice Sullivan, acted as Hunter’s General Manager.
O’Neill also acquired or set up Mecca No.36 Pty Limited[13], which in 1998 changed its name to South Super Stores Limited, a wholesaler and retail business in Goroka with an annual turnover of K20 million.[14] Although the IPA records do not provide a clear picture, in his evidence to the National Provident Fund (NPF) Commission of Inquiry during 2001, O’Neill confirmed that he jointly owned Mecca No.36/South Super Stores Limited[15], through Pangia Enterprises, along with Nathaniel Poya [see PNGi’s Power Profile for Nathanial Poya].[16]
However, IPA records indicate that in 1998, the Pangia Enterprise’s shares in Mecca were transferred to Jack Awela – O’Neill’s alleged uncle. Although that information was not lodged with the IPA until 2000. If O’Neill’s sworn evidence to the NPF Commission of Inquiry is accurate, and in 2001 he was still owner of South Super Stores Limited, presumably Awela acted as his proxy. This is further supported by related findings of the NPF Commission of Inquiry, which concluded Jack Awela held shares in various companies, including Mecca No.36 and Nama Coffee Exports, as a proxy for Peter O’Neill.[17]
O’Neill is also listed in IPA records as a director (1996-1998) and secretary (1996-97) of Mecca (No.36)/ South Super Stores.
Through Mecca No.36/ South Super Stores, Peter O’Neill formed a number of enduring business partnerships. One is with Nathaniel Poya, his alleged relative,[18] who joined as a director in 1996 and became a shareholder in 1998. Poya is himself connected to Maurice Sullivan, through the company PNG National Stevedores Limited, which Poya part owns. According to IPA records, both Poya and Sullivan have been directors there since 1994.
A second long-standing partnership is with Joseph Bakri Kup, who worked as Mecca No.36’s accountant in 1998[19] and was the company secretary from January 1997 to May 1998. He then moved on to another alleged O’Neill company, Port Moresby First National Real Estate.[20] Subsequently, Kup acted as an accountant in many of O’Neill’s business ventures.
A third key relationship is with Jack Awela, who was just mentioned. According to O’Neill’s account, they were introduced by his long-standing family friend, the Australian manager of Hunter Real Estate, Maurice Sullivan.[21]  However, it is alleged in media reports that Jack Awela is in fact Peter O’Neill’s uncle.[22]
As was noted above, the NPF Commission of Inquiry argued that Awela has acted, alongside others, as a key proxy or nominee shareholder/director for Peter O’Neill, in several private companies while O’Neill headed state-owned entities,[23] a contention O’Neill has strenuously denied.[24]
This brings to a close the first phase of O’Neill’s ascendency. The preamble to O’Neill’s career, which spans from 1987-1996 contains many of the reoccurring themes which would be observed in years to come. We see evidence of an ambitious young man, with drive, determination, and a nose for business. Also, O’Neill is a cautious entrepreneur, one who operates through a core set of close associates and confidents, ties that are cemented through close friendships and familial connections. In a competitive, cut-throat commercial world, trust and strict confidentiality are towering assets to have.
Crucially this core network acts as a loyal team. And in subsequent years, this clique O’Neill surrounded himself with in these early days, will assume managerial reigns in a range of public and private organisations.
Accusations soon emerge, however, claiming this tight-knit network were acting as corporate pirates, raiding vulnerable organisations, using positions of power to loot them of their assets, for private gain, with O’Neill allegedly being one of the principal beneficiaries.
Table: Peter O’Neill’s company network pre 2000
Table 1: Peter O’Neill’s corporate network 1987-2001

Skating into power
The big break for Peter O’Neill, and his network of associates, occurred in July 1997. Bill Skate – himself a former accountant – was elected Prime Minister. Skate’s two year Prime Ministership became synonymous with poor fiscal management, allegations of corruption, and the widespread appointment of political clients and “protégés” to head the state’s most important entities and statutory bodies – a behaviour that brought many of them close to collapse. [25]
Peter O’Neill figured heavily among these nominations. Between January 1998 and August 1999, according to IPA records[26] he was appointed director in no less than 25 different state entities and statutory bodies. Key positions include, Executive Chairman of:

  • The Finance Pacific group of companies (the ancestors of the Independent Public Business Corporation; the Rural Development Bank and Village Finance Limited)
  • The Papua New Guinea Banking Corporation (and its different registered entities)
  • Port Moresby Private Hospital
  • Motor Vehicles Insurances Limited; and
  • Pacific MMI Insurance Limited.
Table 1 ONeill appointments to SOEs

Table 2: Peter O’Neill’s appointments to state enterprises 1998/99
One of O’Neill’s business associates and alleged first cousin, Oscar Wandi Yamuna, was another beneficiary of Skate’s appointment spree. During February 1998, Yamuna was made Managing Director of the Investment Corporation of Papua New Guinea (ICPNG).[27] ICPNG, at the time, also acted as trustee and manager of the assets held by the Investment Corporation Fund of PNG.[28]
However, arguably the most infamous Skate appointment from this period, involved Jimmy Maladina. During January 1999, Maladina was appointed Chairman of the National Provident Fund (NPF), a compulsory pension fund for private sector employees in PNG.[29] Peter O’Neill states that he met the Maladina family while at University but did not know Jimmy until 1994.[30]

Network Map: The connections between Peter O’Neill and Jimmy Maladina
Peter O’Neill’s alleged relative10, Nathaniel Poya, is appointed to the NPF board as a trustee, representing employers.[31]
These appointments, and the blurred line between the public responsibilities of Peter O’Neill, Jimmy Maladina and Oscar Wandi Yamuna and their private interests, would become the subject of two commissions of inquiry. The first, was NPF Commission of Inquiry led by Rtd Judge Tos Barnett which published its findings in 2002, while the second was the Commission of Inquiry into the management of the Investment Corporation of Papua New Guinea (ICPNG) and the Investment Corporation Fund of Papua New Guinea (ICFPNG), led by Judge Don Sawong, which published its results in 2007.
Both reports allege a vast web of corruption, fraud and malpractice, enacted through private companies connected to O’Neill, Maladina and Yamuna.
A full survey of the inquiry findings will form the focus of Part II. However, to prelude that discussion, O’Neill alleged use of his public role to strengthen and grow his emerging business empire, will be summarised here.
At the centre of both scandals is Port Moresby First National Real Estate Limited (PMFNRE), a successful real estate venture. PMFNRE had hundreds of clients, and a reported annual turnover in 2000 of K60 Million.[32] Its inception as a corporate entity, syncopated closely with O’Neill and Yamuna’s rise to public prominence.
The NPF inquiry observed there was a ‘clear and true and documented relationship between Mr. O’Neill and PMFNRE’. This included Peter O’Neill using PMFNRE as his banker, receiving funds for his personal benefit, borrowing large sums of money, and giving requests or directions to company staff. The Commission concluded,  ‘there is overwhelming evidence that the true owner of PMFNRE is and was Mr. Peter O’Neill’[33]and Jack Awela, who held 90% of the shares, as a proxy or nominee for Mr O’Neill.[34]
According to the NPF Commission of Inquiry both Jimmy Maladina and Peter O’Neill benefited from the Waigani Land and NPF Tower frauds that were at the centre of the investigation. The Commission found that the proceeds, some K4.5 million, were laundered through Jimmy Maladina’s law firm, Carter Newell, and PMFNRE.[35]PMFNRE is also said to have benefited through being awarded the ‘lucrative contract’ to manage the NPF Tower and being appointed agent for the sale of 50% of the Tower. Both appointments were allegedly made outside the lawful tender process.[36]
In his testimony to the NPF Commission of Inquiry, Yamuna’s predecessor at the Investment Corporation, John Ruimb, recalled a meeting he allegedly had in his office with Peter O’Neill and Fabian Pok (then the Minister for Forests and shortly to become Minister for Public Enterprises) late in 1997:


Further conversations were a follow up on various other project that Peter O’Neill had made to me suggesting that all the Investment Corporation properties be given to Port Moresby First, sorry, it was Hunter Real Estate at that time to manage the properties. And in that meeting, in the presence of Dr Pok he talked about the need for them to make more money enough to sustain the members they had in Parliament to remain in government. And that if I did not cooperate they would determine my future.[37]
Ruimb also implied to the inquiries, that his reluctance to award Hunter Real Estate (another O’Neill company) management contracts outside proper tendering process, led to his termination – just seven months into a three year contract – and replacement by Wandi Yamuna.[38]
Once Wandi Yamuna was appointed Managing Director of the ailing ICPNG, exclusive contracts were granted to PMFNRE for the management and sale of ICPNG and ICFPNG assets. This appointment allegedly occurred, ‘in questionable circumstances’ and ‘without following proper processes in most cases’.[39]
According to the ICPNG inquiry, Yamuna as Managing Director was directly responsible for the sale of the ICPNG’s four substantial properties.[40]  This saw PMFNRE accrue sizable commissions.[41] Furthermore, Peter O’Neill is said to have personally benefited from the direct acquisition of at least one of these commercial properties – the Manamatana apartments,  a seven-story building with 24 apartments. According to the Commission, the latter property was sold to O’Neill’s newly registered real estate company Bluehaven No. 42 Limited on ICFPNG’s behalf by PMFNRE, who received an inflated fee of 3.5%.[42] The sale price was K2 million.
The ICPNG inquiry found the sale was made at K245,000 less than the latest valuation with no transparent bidding process.[43] The Commission of Inquiry also concluded the sale was negligently approved by the then two Ministers in charge, Fabian Pok and Iairo Lasaro – it will be recalled Pok was alleged to have pressured Yamuna’s predecessor to improperly appoint PMFNRE. O’Neill testified that his wife personally received K40,000 from the sale by way of commission, paid by her employer PMFNRE.[44]
This Manamatana sale was one of the key transactions that led to the dismissal of Oscar Yamuna as the Investment Corporation’s Managing Director. [45]
The Investment Corporation Fund is not the only state entity alleged to have given benefits to O’Neill linked entities. While Peter O’Neill was the Executive Chairman of the PNG Banking Corporation (PNGBC), there is evidence to suggest a series of loans were given to private companies belonging to O’Neill and his associates:

  • In July 1998, PMFNRE received a PNGBC loan of at least K146,231.[46] It was claimed by the NPF Commission of Inquiry that O’Neill is the true owner of this company [see references above].
  • During May 1999, South Super Stores registers a PNGBC loan worth 4 million Kina.[47] By his own admission O’Neill still owned shares in the company (formerly known as Mecca No.36) and was trying to find a buyer for it at this time.[48]
  • Nama Coffee Export – a coffee export company as its name indicates, with shares owned by Jack Awela and Ken Fairweather among others, but which O’Neill testified in the NPF inquiry he actually owned[49] – received a 4 Million kina PNGBC loan in March 1999.[50]
  • Bluehaven No. 41 Limited, a merchant and retail company freshly incorporated in June 1999 and owned by O’Neill,[51] was given a loan facility worth K341,000 in July 1999.[52]
In his evidence to the Commission of Inquiry O’Neill claims these were all legitimate business loans, approved through the normal bank processes and that he played no part in the approvals, despite being Executive Chairman.
Finally, in the last days preceding his dismissal from PNGBC and the Finance Pacific Group over the NPF scandal, Peter O’Neill, according to the NPF Commission of Inquiry, managed to purchase one of Finance Pacific’s assets, the insurance company Resources & Investment Finance Limited, through a company Bluehaven No.67 in which O’Neill ‘held a very substantial interest’. The Commission alleges it was O’Neill who signed the sale agreement on behalf of the State and the purchase was made using proceeds from the NPF fraud – ‘the other interested party was Jimmy Maladina (through Ferragamo Ltd)’. [53]
The Commission of Inquiry concluded the ‘lure’ that motivated O’Neill and Maladina ‘was that it was a cash rich company available for a very cheap price which could subsequently be stripped of its assets’, they ‘would then have acquired a licensed financial institution for virtually no cost.’[54]
O’Neill’s role as head of numerous state companies also landed him hefty directorship fees. Following his dismissal from PNGBC, for example, O’Neill received K1,390,000 in ‘final entitlements,’ from that one company alone.[55]
Under Skate’s tutelage, 1998-1999 represented a watershed moment for Peter O’Neill. In less than 24 months he was appointed to senior positions in 25 state entities, while close affiliates found themselves in command of the ICPNG and NPF.
According to Judges, Don Sawong and Tos Barnett, who led the two commissions of inquiry, executive power was used to rig market transactions, so illegitimate benefits could be distributed to O’Neill and his network of conspirators.
Tos Barnett, in particular, alleges the proceeds of these illegal activities was laundered, and then used to acquire assets, such as Resource & Investment Finance Limited. In addition to this, IPA records suggest millions in PNGBC funds were loaned to O’Neill entities, while he was Executive Chairman.
While the veracity of all these allegations levelled by the two former National and Supreme Court judges, can not be verified here – nevertheless, it is certainly apparent O’Neill soon went from a modest businessman, to one of Papua New Guinea’s first oligarchs.
And on this strong foundation, a promising political career was launched.
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Footnotes
[2] Callick, R. (2011) ‘Highlander with big shoes to fill’, The Australian, 16 September 2011 (accessed 6 March 2017)
[3] National Parliament of Papua New Guinea, Hon. Peter O’Neill Biography (accessed 6 March 2017)
[4] Trans PNG Services Pty Ltd, Company extract, Investment Promotion Authority (IPA) and Virgil Baden Counsel biography, (accessed 3 March 2017)
[5] Sawong, D. (2007), Report of the Commission of Inquiry into the Management of the Investment Corporation of Papua New Guinea and the Investment Corporation Fund of Papua New Guinea and all matters relating to the Conversion of the Investment Corporation Fund of Papua New Guinea to Pacific Balanced Fund, p249
[6] Pangia Enterprises Limited, Historical directorship, IPA. Oscar Wandi Yamuna kept a directorship in Pangia Enterprises until its 2010 merger with several of Peter O’Neill’s companies into Paddy’s Hotels & Apartments Limited.
[7] Callick, R. (2011) Ibid.
[8] Barnet, T. (2001), Commission of Inquiry into the National Provident Fund, Transcript of Proceedings 10 May 2001, at p8
[9] Pratley & O’Neill was a registered Business Name. Maurice Pratley & Associates was another registered Business Name and there was a registered company with the same name. IPA
[10] Papua New Guinea Treasury Department, Peter Charles Paire O’Neill Bio-Data  (accessed 3 March 2017)
[11] Pratley & O’Neill, Business Name Extract, IPA. The filing of an application for the registration of the business name was lodged the day of the cessation of the activity, on 21 August 1993.
[12] Hunter Real Estate Limited, Company Extract, IPA;  Hunter Real Estate Limited, Annual Return 1998, IPA.
[13] From the public records it is impossible to tell if Peter O’Neill acquired/ purchased the shares or started the business himself because there are no records between 1992-1996. The business was incorporated in 1992.
[14] South Super Stores Limited, Company Extract, Investment Promotion Authority; South Super Stores Limited, Historical directorship, IPA as shown on 06/03/2017; South Super Stores Limited, Historical secretary positions, IPA as shown on 06/03/2017 ; South Super Stores Limited, Notice of Change of Shareholder, IPA; South Super Stores Limited, Annual Return 1997, IPA. The annual return indicates that SSS started trading in January 1992. The ownership of South Super Store itself has been the subject of much controversy detailed in the National Provident Fund Commission of Inquiry. 
[15] At that time, O’Neill has stated “Mecca employs about 250 people with an annual turnover of approximately K20 million. It operates a chain of supermarkets, wholesaling, distribution and property owner.” Commission of Inquiry into the National Provident Fund, Transcript of Proceedings 10 May 2001, at p11
[16] Barnet, T. (2001), Commission of Inquiry into the National Provident Fund, Transcript of Proceedings 10 May 2001, at p9
[17] Barnet, T. (2001), Commission of Inquiry into the National Provident Fund, at p218, “At paragraphs 12.5.2.5 and 12.5.2.6, the commission has found that Mr Awela (if he exists as a real person at all) is holding his shares in all these companies for Mr O’Neill. The result is that Mr O’Neill is the beneficial owner of PMFNRE and this accords with the overwhelming weight of other evidence ­ as set out in paragraphs 12.5.2.2, 12.5.2.3, 12.5.2.4 and 12.5.2.6.”
National Provident Fund Executive Summary p241, “At paragraph 12.5.2.4 the commission describes how Mr O’Neill gave detailed directions to PMFNRE’s accountants on accounting matters. At paragraph 12.5.2.5, the commission reports on Companies Office records which show Mr Awela as owning 90 per cent of the shares in PMFNRE. Granted the commission’s previous findings that Mr Awela is a nominee for Mr O’Neill in Mecca No.36 Ltd, and Nama Coffee Exports Ltd, it is quite clear that Mr O’Neill himself owns the 90 per cent of shares in PMFNRE attributed to Mr Awela.”
See also Commission of Inquiry into the National Provident Fund Transcript for 4 February 2002 at p16-19
[18] RNZ, 24 May 2013, accessed on 04/03/17 at 
[19] Barnet, T. (2001), Commission of Inquiry into the National Provident Fund, Transcript of Proceedings 10 May 2001, at p9
[20] Barnet, T. (2001), Commission of Inquiry into the National Provident Fund, Transcript of Proceedings 10 May 2001, at p9
[21] Barnet, T. (2001), Commission of Inquiry into the National Provident Fund, Transcript of Proceedings, 27 November 2001 at pages 18,24 and 32. 
[22] Krau, D. (2006), PNG Post- Courier, 12 January 2006
[23] Barnett, T. (2002), Report of the Commission of Inquiry into the National Provident Fund, Executive Summary Schedule 6,
[24] Barnet, T. (2001), Commission of Inquiry into the National Provident Fund Transcript of Proceedings, 27 November 2001, at p14.
[25] Standish, B. (1999), Papua New Guinea 1999: Crisis of Governance – Parliament of Australia. (Accessed 6 Mar. 2017).
[26] According to IPA records the first appointment was in January 1998 but Peter O’Neill has stated he started as Executive Chairman of PNGBC in August 1997. Commission of Inquiry into the National Provident Fund, Transcript of Proceedings 10 May 2001, at p20
[27] Sawong, D. (2007), Ibid 
[28] Sawong, D. (2007), Ibid at page xi
[29] Barnet, T. (2001), National Provident Fund Commission of Inquiry, p37: “The Act established the NPF as an accumulated benefits superannuation fund for private sector employees. All private employment establishments employing 25 or more employees are required to join the fund, with employers and employees all contributing a percentage of the employee’s wages to be received by the fund and credited to the member’s account.”
[30] Barnet, T. (2001), Commission of Inquiry into the National Provident Fund, Transcript 10 May 2001 at p22.
[31] Barnet, T. (2001), Commission of Inquiry into the National Provident Fund p45
[32] Barnet, T. (2001), Commission of Inquiry into the National Provident Fund, Transcript of Proceedings, 14 December 2000, at p64, available at  (accessed 07 March 2017)
[33] Barnet, T. (2001), Commission of Inquiry into the National Provident Fund, Transcript of Proceedings 18 October 2001, at p342 to 346. To more fully understand the relationship between PMFNRE and Peter O’Neill, see also, Transcript 27 November 2001, p32 to 34 and Transcript 4 February 2002, P14 to 19
[34] ‘Not a single witness said anything about the legal holder of 90% of the shares Mr. Awela being the owner of PMFNRE, and it is clear he holds those shares in trust. This is the same Mr. Awela who is the legal owner of the shares in Nama Coffee Exports Limited and Mecca No. 36 Limited which Mr. O’Neill says he owns – one directly and the other through Pangia Enterprises Limited. It is also the same Mr. Awela who appears as a director of Chelsea Security Limited.’ Commission of Inquiry into the National Provident Fund, Transcript of Proceedings 18 October 2001, at p346
[35] “The commission also traced the way the moneys obtained by the NPF Tower fraud were “laundered” through the books of Carter Newell and PMFNRE. This showed up the involvement of Peter O’Neill as one of those who benefitted from the Waigani Land and NPF Tower frauds” p6 of the Commission of Inquiry into the National Provident Fund
“In essence, the commission has found that the money was “laundered” through the books of account of Carter Newell Lawyers and PMFNRE.
The investigations showed that PMFNRE is actually beneficially owned by Peter O’Neill and that he and Mr Maladina obtained substantial benefits from the proceeds of the NPF Tower frauds, either personally or through their companies and families”. p22 of the Commission of Inquiry into the National Provident Fund
“Further investigation of this fraud and other suspicious activities are reported upon in Schedule 6 which also relates the full history of the frauds perpetrated by Jimmy Maladina, Herman Leahy and Angelina Sariman in early 1999 whereby they illegally obtained K2.5 million from NPF and attempted to benefit from a K2 million commission to Port Moresby First National Real Estate (PMFNRE). It also reports upon the involvement of Peter O’Neill, Maurice Sullivan and Ken Barker. Schedule 6 presents the results of the commission’s investigation into the money trail, which traced the “dirty money”, as far as possible to its eventual recipients.
The trail leads through the bank accounts of Carter Newell Lawyers and PMFNRE to the intended beneficiaries who include Mr Maladina, Mr Leahy and Ms Sariman as well as the directors of PMFNRE Ken Barker and Maurice Sullivan and Peter O’Neill, executive chairman of the PNGBC and Finance Pacific and the secret “owner” of PMFNRE” p77 of the Commission of Inquiry into the National Provident Fund.
[36]“Mr Fabila and Mr Leahy intervened in the lawful tender process for awarding contracts for managing NPF properties, which included awarding the lucrative contract to manage the NPF Tower to PMFNRE (Schedule 9, paragraph 5.6.1(c). Agreeing to appoint PMFNRE as NPF’s agent to sell 50 per cent of the NPF Tower to the Papua New Guinea Harbours Board (PNGHB) and to pay a 5 per cent commission worth K2 million to Mr Sullivan ­ without the knowledge or approval of the NPF board (Schedule 6, paragraphs 13 to 13.1.4).” p33/34 of the Commission of Inquiry into the National Provident Fund pdf
[37]Barnet, T. (2001), Commission of Inquiry into the National Provident Fund Transcript of Proceedings, 31 January 2001, available athttps://web.archive.org/web/20080318063157/http://www.pm.gov.pg/pmsoffice/pmsoffice.nsf/pages/FF91B9E68397E29A4A256C3D002DCB6A?OpenDocument
[38] Barnet, T. (2001), Commission of Inquiry into the National Provident Fund Transcript of Proceedings, 31 January 2001, at p23-25
[39] Sawong, D. (2007), Report of the Commission of Inquiry into the Management of the Investment Corporation of Papua New Guinea and the Investment Corporation Fund of Papua New Guinea and all matters relating to the Conversion of the Investment Corporation Fund of Papua New Guinea to Pacific Balanced Fund, p71-73
[40] Cascade Apartments, Investment Haus, ANG Haus and Manamatana Apartments
[41] Sawong, D. (2007) Ibid. at p109 and 111 (Cascade, 2%+ 3% sale tax);  page 115 (Investment Haus); p117 and 120 (ANG Haus. 2% + 4% sales tax – in that case PMFNRE’s actions amount to “theft.” -page 121); p122 and 125 (Manamatana). Also, p179 to 182, PMFNRE received a large commission for the non-existent sale of the Ilimo farm
[42] The usual fee was 2% according to the evidence presented in the Commission Report. At p122 it reads: “Mr Yamuna stated further in the letter that the sales commission would be 3.5%, an increase of 1.5%.”
[43] Sawong, D. (2007) Ibid. p122, 124 and 125.
[44] Barnet, T. (2001), Commission of Inquiry into the National Provident Fund, Transcript of Proceedings, 4 February 2002 at p20
[45] Sawong, D. (2007) Ibid. p97
[46] Port Moresby First National Real Estate Limited, Annual Return 1998, Investment Promotion Authority
[47] South Super Stores Limited, Notice for registration of charge, Investment Promotion Authority, 22 July 1999
[48] Barnet, T. (2001), Commission of Inquiry into the National Provident Fund, Transcript of Proceedings, 27 November 2001 at p34 and 35. “I sold Mecca No.36 Limited to Mr Awela in 1998 because of both family issues and management problems. In 1998, my then wife decided to move to Australia and my accountant decided to pursue his own business interest and left around the same time. I had crisis situation for several months until I sold my shares to Mr Jack Awela in May 1998 on a deferred settlement basis. This was arranged by Mr Sullivan who is known both to myself and Mr Awela. A copy of the sale agreement is attached. In March 1999 I was getting concerned that there was no payment forthcoming and had several discussions with Mr Sullivan who in turn told Mr Awela that he must make some form of payment to me. Mr Awela was having problems both with finance and staffing issues. These issues were not to be easily resolved and problems were compounding by each day. It was then decided that I should try and rescue the business by looking for other trading companies to acquire the business from Mr Awela, who still owns shares in Mecca No. 36 Limited. Mr Awela agreed to transfer the shares in Nama Coffee Exports Limited and Toanamo Apartments Limited as part payment of the purchase price of K2 million. In December 1999 I concluded a deal worth K2 million with a group of Malaysian/Chinese traders, Highlands Traders Limited, where payments due to Mecca No. 36 Limited were to be diverted to me to pay for my shares sold to Mr Awela. These funds received from Highlands Traders Limited have been included in the reconciliation of funds received by PMFNRE into their trust account. It is for these reasons that I state that I still own the shares in Mecca No. 36 Limited.”
[49] Barnet, T. (2001), Commission of Inquiry into the National Provident Fund, Transcript of Proceedings, 27 November 2001 at ‘Transcript 9105’.
[50] Nama Coffee Exports Limited, Notice for registration of charge, IPA, 21 April 31 March 1999
[51] Bluehaven No. 41 Ltd, Notice of Change of Shareholder, Investment Promotion Authority, 25 June 1999. Transfer occurs 21 June 1999 to Peter O’Neill and Lynda Babao.
[52] Blue Haven No. 41 Limited, Notice for registration of charge, Investment Promotion Authority, 2 August 1999
[53] Barnet, T. (2001), Commission of Inquiry into the National Provident Fund Executive summary at pages 233, 234 and 238 and Transcript of Proceedings, 1 November 2001 
[54] Barnet, T. (2001) Ibid.
[55] Barnet, T. (2001), Commission of Inquiry into the National Provident Fund, Transcript of Proceedings, 27 November 2001

ACT II: ON THE RISE - THE O’NEILL EMPIRE HAS A GROWTH SPURT

From 1999 until 2007, O’Neill expands a business empire, established during the preceding decade under controversial circumstances. Notably O’Neill establishes commercial ties with an elite strata of international businessmen and lawyers, along with a number of notable local heavyweights of politics and business.
In effect O’Neill becomes a man with formidable commercial, legal and political connections – which he uses to grow his commercial and political empire.
Critically, between 1999 and 2001, O’Neill invests over two million kina in LBJ Investments Limited[56], a company named after three of his children (Loris, Brian and Joanne). It has become the main holding company for many of his businesses.[57]
To this day, LBJ Investments sits at the centre of O’Neill’s business empire.

We know the lawyer Gregory James Lay, set up LBJ[58] on behalf of Peter O’Neill and held the shares as a trustee for O’Neill’s children[59] until at least December 1999.[60]

Network Map: LBJ’s position at the centre of O’Neill’s empire

Lay later went on to serve as a National Court judge from 2004-2009[61] and also served, in 2015, as the chair of a committee looking into the appointment of a new Chief Ombudsman.[62]

Australians Maurice Sullivan and James Dawson, the latter worked under O’Neill at the PNG Banking Corporation,[63] and more recently Kenneth Harvey and John Beattie,[64]have all served as LBJ directors.

Network Map: James Dawson’s links to the Peter O’Neill network

Harvey and Beattie are also involved in O’Neill’s Remington group (see below), as directors and, in Harvey’s case, through a minority shareholding[65].
Outside of this, Harvey currently sits on the board of Air Nuigini and its subsidiary Link PNG,[66] while Beattie has been a partner in the Pacific Legal Group since 2000[67] and is involved in many companies linked to the construction and mineral industries.
Network map showing Ken Harvey's links to O'Neill companies
Network Map: Kenneth Harvey’s corporate links

Network Map: John Beattie’s corporate links
Between 1999 and 2002, O’Neill also acquired interests in various other businesses including:

  • The wholesalers Value Plus Stores Ltd[68] and Highland Traders Limited;[69]
  • Chelsea Security Limited[70], in association with the current leader of the opposition Sam Basil[71] (who acquired one of his shares from Jimmy Maladina);
  • Toanamo Apartments Limited[72] and Toanamo Developments Limited[73]; and
  • PRD Realty Limited.[74]

Another notable O’Neill investment involves the bar and casino company Omerta Limited. O’Neill initially acquires a 30% stake in 2000, before fully taking over the company in 2007.[75] Through Omerta, Peter O’Neill strengthens his association with:

  • Jimmy Maladina, who owns 30% of the company, through Ferragamo Limited.
  • Australian/Pakistani businessman Mohammed Sultan and Indian executive, Sanjay Shah, who initially own 39% of Omerta through their company Supreme Industries Limited and Amender Ltd, a company they acquired from Jimmy Maladina in August 2000.[76]
  • The Australian James Kenneth Dawson, who serves as a director of Omerta from 2000 – 2006. Dawson is also a director of Resources & Investment Finance Limited from 1999 – 2012.[77]
Via Omerta, Peter O’Neill further diversifies his business interest, with the acquisition of the IT company Remington Limited,[78] from an Australian concern, Baradeen Holdings Pty Ltd.[79]
In 2003 we also know that all the shares in a separate company, Remington Technology Limited, of which Remington Limited owned 50%, were transferred to LBJ Investments.[80] Today, Remington Technology is one of Peter O’Neill’s biggest and most valuable companies, with declared assets of over K58 million.[81] O’Neill owns over 92% of the shares and Kenneth Harvey a little under 8%.[82]
An industry magazine observes, Remington Group ‘provides PNG businesses, governments and AID organisations with business services, document solutions, printing, business equipment and after-sales support’. According to the CEO of one Australian partner firm, FileBound Australia, the Remington Group ‘have tremendous relationships with corporate and government organisations’ in Papua New Guinea.[83]
O’Neill also has interests in consumer finance. During 2001, O’Neill’s company LBJ Investments Limited[84] acquires 55% of the shares in the financial company NIU Finance Limited, a provider of consumer loans.[85] His business partners in the venture at the time were:

  • Amender Limited, a company associated with Jimmy Maladina, as an original shareholder and James Dawson, as a director from 2000 – 2004, and owned by Mohammad Sultan and Sanjay Shah through Supreme Industries;
  • Arturo Limited, another company originally registered by Jimmy Maladina; and
  • Nexus Capital Limited, a company linked to James Kenneth Dawson, as director from 2000 until 2006.
NIU Finance share records reveal fluctuations in company ownership and control over the years. As of May 2017, O’Neill owns 78% of the company, while the political identities, Michael Nali and Ken Fairweather own 10% each, through Kwadi Inn and Piskulic Limited, respectively.[86]
As O’Neill expanded his network of business interests during 2000 and 2001, the NPF Commission of Inquiry, conducted its hearings. The inquiry concluded in 2002, the same year that Peter O’Neill is elected to Parliament for the first time as the member of Ialibu-Pangia.
He is quickly elevated up the Ministerial ranks by the Prime Minister Michael Somare, serving in a range of senior roles, including:

  • Minister for Labour and Industrial Relations from August 2002 to December 2003,
  • Leader of Government Business from March 2003 to May 2004, and
  • Minister for Public Service from August 2003 to May 2004.[87]
O’Neill is then dumped from government after he led an unsuccessful bid to oust Somare, with Moses Maladina (one of Jimmy Maladina’s brothers,[88] Jimmy’s other brother, Harvey, is a partner in the law firm, Young & Williams, alongside the Australian, Greg Sheppard, who has acted for O’Neill over many years).[89]
O’Neill became leader of the opposition for the remainder of the government’s term.

O’Neill’s career suffered further political turbulence during August 2005, when he was charged with seven counts of misappropriation and one count of conspiracy relating to his earlier involvement in the NPF scandal.[90]
In spite of the evidence collated by the Commission of Inquiry, the charges against O’Neill were dismissed by magistrate Mekeo Gauli at the committal hearing in January 2006. He upheld a submission of no case to answer made by O’Neill’s then lawyer Rimbink Pato.[91] Pato currently serves as the Minister for Foreign Affairs and Immigration in the O’Neill government. Previously he succeeded O’Neill as Executive Chairman on the PNGBC board[92] and at Finance Pacific.[93]

O’Neill was successfully re-elected in 2007, becoming Minister for Public Service under a coalition government again led by Michael Somare.[94] It is at this juncture that some new and important actors enter O’Neill’s business circle.
_____________________________________________
FOOTNOTES
[56] The money is  invested through O’Neill purchasing three tranches of newly issued shares -01/12/1999 – Issue of 1,799,999 for 1 Kina each – 05/01/2001 – Issue of 300,000 for 1 Kina each – 05/02/2002 – Issue of 50,000 at 1 Kina per share
[57] LBJ Investments Limited, Notices of issue of shares, Investment Promotion Authority, 4 June 2004; LBJ Investments Limited, Notice of issue of shares, Investment Promotion Authority, 11 August 2004.
[58] The company registration documents filed with the Investment Promotion Authority are all signed by Lay and he was the initial director and listed shareholder of the company. Investment Promotion Authority, website accessed 31 May 2017
[59] In 2001, Peter O’Neill told the National Provident Fund Commission of Inquiry “LBJ is a company formed in late 2000 to hold a number of investments on behalf of my children Loris, Brian and Jo-Anne. Mr Gregory James Lay formerly of Young and Williams Lawyers now Norton White Lawyers incorporated the company and held its shares in trust for my children” [paragraph 41 of O’Neill’s affidavit given in evidence on 10 May 2001]
[60] LBJ Investments Limited, Notice of change of shareholder (share transfer), Investment Promotion Authority, lodged 4 June 2004
[61] https://www.linkedin.com/in/gregory-lay-93160147/ accessed on 29 May 2017
[62] LOOP PNG ‘Appointment of a Chief Ombudsman Stalls’, 12 August 2015. Article accessed on 29 May 2017 
[63] Commission of Inquiry into the National Provident Fund, Transcript of Proceedings 10 May 2001 at p21
[64] LBJ Investments Limited, Company Extract, Investment Promotion Authority; LBJ Investments Limited, Historical directorship, Investment Promotion Authority as shown on 6 March 2017 at www.ipa.gov.pg;
[65] Beattie and Harvey are directors of Remington Technology Limited and Harvey is a minority shareholder with 13% of the shares. Harvey is also, since 2001, a director in Remington Limited since 2001.
[66] Air Nuigini company website (accessed 6 March 2017); Link PNG Limited, Company Extract, Investment Promotion Authority
[67] PLG Ltd, Company extract, Investment Promotion Authority
[68] Value Plus Stores Ltd, Company Extract, Investment Promotion Authority
[69] Highlands Traders Limited, Company Extract, Investment Promotion Authority
[70] Chelsea Security Services Ltd, Company Extract, Investment Promotion Authority
[71] National Parliament of Papua New Guinea, Hon Sam Basil MP (accessed 6 March 2017)
[72] Toanamo Apartments Limited, Company Extract, Investment Promotion Authority; Toanamo Apartments Limited, Notice of change of shareholder (share transfer), Investment Promotion Authority, 13 July 2000
[73] Toanamo Developments Limited, Company Extract, Investment Promotion Authority
[74] PRD Realty Limited, Company Extract, Investment Promotion Authority
[75] Omerta Limited, Notice of issues of shares, Investment Promotion Authority, 24 February 2000.
[76] Amender Ltd, Notice of change of Shareholder (share transfer), Investment Promotion Authority, 8 November 2001
[77] Resources & Investment Finance Limited, Company Extract, Investment Promotion Authority
[78] Although, the ownership details in official IPA records appear not to have been updated – Remington Limited is still listed as being owned by Baradeen Holdings by the IPA. Remington’s 1999 annual return held by the IPA indicates an upcoming sale to Omerta. Furthermore, Peter O’Neill told the NPF Commission of inquiry [See variously in the Commission of Inquiry into the National Provident Fund, Transcripts of Proceedings, 18 October 2001 at page 17, page 315 and page 316 and Peter O’Neill’s statement of 10 May 2001 (point 40 on p24) and the transcript for 27 November 2001 – O’Neill’s statement at p 49.] that he had acquired the company, although in his testimony O’Neill said it was through LBJ, not Omerta, for K200,000.
[79] Baradeen Holdings Pty Ltd. Current & Historical extract, Australian Securities & Investment Commission, accessed on 1 November 2016.
[80] Remington Technology Limited, Annual Return 1999, Investment Promotion Authority; Remington Technology Limited, Notice of change of shareholder (share transfer), Investment Promotion Authority, 30 November 2005.
[81] Annual return for 2015 accessed via the Investment Promotion Authority website, 30 May 2017
[82] Remington Technology Limited, Company Extract, Investment Promotion Authority
[83] ‘A digital revolution in PNG’ article on the Image and Data Manager website accessed on 29 May 2017
[84] In 2001, Peter O’Neill told the National Provident Fund Commission of Inquiry “LBJ is a company formed in late 2000 to hold a number of investments on behalf of my children Loris, Brian and Jo-Anne. Mr Gregory James Lay formerly of Young and Williams Lawyers now Norton White Lawyers incorporated the company and held its shares in trust for my children” [paragraph 41 of O’Neill’s affidavit given in evidence on 10 May 2001] But according to documents filed with the IPA Peter O’Neill himself purchased the single share in LBJ from Lay in December 1999.
[85] Notice of share issue in September 2001 accessed via the Investment Promotion Authority website, 30 May 2017
[86] Niu Finance Company Extract, Investment Promotion Authority
[87] National Parliament of Papua New Guinea, Hon. Peter O’Neill Biography (accessed 6 March 2017)
[88] Callick. R (2003), ‘Maladina returns to face his accusers’, The Australian Financial Review, 18 July
[89] Young & Williams Lawyers company website (accessed 6 March 2017)
[90] International News, (2005), ‘PAC’s opposition leader charged with misappropriation,’ AAP Newsfeed, 18 August
[91] Krau, D. (2006), ‘O’Neill cleared of NPF charges,’ PNG Post-Courier, 12 January
[92] PNGBC Ltd, Notice of change of directors and particulars of directors, Investment Promotion Authority, 26 January 2000.
[93] National Provident Fund Commission of Inquiry at Page 84 and page 85 and Transcript for 4 February 2002 at page 6.
[94] National Parliament of Papua New Guinea, Hon. Peter O’Neill Biography (accessed 30 May 2017)

ACT III:  HAVING YOUR CAKE AND EATING IT TOO

While a Minister, in September 2008, Peter O’Neill become director and minority (10%) shareholder in the company PNG China Business Consultants Limited, alongside the prominent couple, Australian Luciano Cragnolini and his Chinese wife Ni Yumei Cragnolini.[95]
When O’Neill originally joined PNG China Business Consultants Limited, the majority of shares (80%) were held by Hong-Kong resident, Sing Yun Lin, and Ni Yumei Cragnolini (10%); the company’s declared activities are consulting and wholesale trade.[96] In 2014, both O’Neill and Sing Yun Lin transferred their shares to the Cragnolini’s, leaving them with sole ownership. However, the registry of foreign enterprises still lists Peter O’Neill as a shareholder.[97]
Luciano Cragnolini has earned a colourful reputation in PNG, and has extensive business interests. During November 1995, he was dubbed “Dirty Larry” by the Australian media. The Sun Herald described him as a hero for ‘shooting down a gang of 11 robbers’ in a Clint Eastwood style stand-off in a PNG restaurant, killing two of them and critically wounding two others with his .38 semi-automatic pistol.[98] Years later, in May 2008, Luciano’s right-hand man at his company L&A Construction was murdered outside the company offices.[99]

Network Map: The Cragnolini business empire

As well as being successful business people, the Cragnolinis have also served in a number of public positions:
Luciano as:

  • Deputy Chairman of the National Capital District Building Board, representing the construction industry; and [100]
  • Chairman of the National Capital District Liquor Licensing Board.[101]
Ni Yumei as:

  • Commissioner for the PNG Sports Foundation.
  • Member of the National Gaming Control Board; and
  • Chair of the PNG China Business Council.
Ni Yumei has also acted as the Chair of the PM O’Neill Foundation,[102] and is the joint owner of the PM O’Neill Foundation business name.[103]
The Cragnolini’s business association with Peter O’Neill strengthened further in May 2009, when O’Neill’s LBJ Investments and L&A Tile Merchants (PNG) Limited each acquired a 45% stake in the funeral company, Dove Funeral Services.[104] L&A Tile Merchants is part of the Cragnolini group of companies.[105] Three-years later O’Neill and the Cragnolini’s acquire full ownership of the company, after they acquire the final 10% of the shares from Australian, Kevin Bender.
In February 2010, a new O’Neill company is registered, Claredale Limited.  LBJ and Remington Technology are the owners, each holding 50% of the shares.[106]
During July 2010, Peter O’Neill’s political career also gets a boost when he is appointed Finance and Treasury Minister, in addition to his role as Minister for the Public Service.[107]
Following his political promotion, in September there are further additions to O’Neill’s business empire and growing links to the Cragnolinis.
First, is the acquisition by Remington Technologies of a 34% stake in yet another Cragnolini company, Melanesian Travel Consultants Ltd. The Cragnolini’s had purchased the company just three months earlier. Remington did not maintain its shareholding for long. Just 6 days later it transfers them to another O’Neill vehicle, LBJ Investments[108].
Second, is the merging of three O’Neill real-estate companies:

  1. Pangia Enterprises Limited,
  2. Omerta Limited; and
  3. Bluehaven No. 42 Limited
Together they form Paddy’s Hotels & Apartments Limited. The company’s main asset is the Paddy’s Hotel, Shamrock pub and Reef ‘n Beef restaurant complex in the Port Moresby suburb of Boroko, built for O’Neill by the Cragnolini’s L&A Construction Ltd.[109] The hotel was opened in September 2012.[110]
While the Paddy’s hotel complex was under construction, Peter O’Neill took the Prime Ministership in August 2011. This followed complex political maneuvers which toppled the acting Prime Minister Sam Abal, while Michael Somare was away for medical treatment in Singapore.[111] The ousting of Somare was later ruled unlawful by the courts.[112] This precipitated an enduring constitutional crisis. It was finally settled after O’Neill was re-elected Prime Minister by Parliament in August 2012, after a national election.[113]
As Prime Minister, O’Neill became a shareholder in a range of state enterprises and entities. For instance, he is made one of three shareholders in the National Airports Corporation Ltd (NAC) from 2012 until 2015.[114] Peter O’Neill is also appointed, in August 2012, sole shareholder of the newly created Kumul Minerals Holdings Limited (KHM),[115] an umbrella entity in charge of all the state’s minerals assets (the successor of Petromin). Kumul Minerals Holdings is parent to a range of state subsidiaries. In October 2016, O’Neill announced the appointment of Peter Taylor as KMH’s Chairman. [116] Taylor has served as Managing Director for Ok Tedi and ExxonMobil.

Network Map: Kumul Minerals’ subsidiaries

O’Neill’s ascent into the highest political office, did not place a brake on his business interests. Both bloomed, often in symbiotic ways.
For example, O’Neill patronized his own businesses in March 2012, when he opened, as Prime Minister, ‘state-of-the-art’ premises for Dove Funeral Services.[117] While the Prime Minister is reported to have congratulated L&A for their success, he remained circumspect about his own stake in the business.


Network Map: Peter O’Neill’s business connections to the Cragnolinis
During May 2012, the O’Neill-Cragnolini funeral company, acquires Beachmere Limited, from the prominent lawyer, New Zealander, Jeffery Shepherd.[118] It is unclear what the nature of Beachmere’s business is. More details exists, however, on O’Neill’s next investment.
In January 2014, LBJ Investments acquired Wild Cat Developments Limited[119](previously Carson Pratt Services and, in October 2016, briefly renamed Construction and Procurement Services Limited and now TGC Limited).[120] Wild Cat (now TGC) is described as the ‘leading mineral and petroleum exploration and support company in the PNG highlands’.[121] 
Following its acquisition by LBJ Investments, the company enjoyed considerable success.
During 2016 the company explained its significant expansion during the preceding year, which occurred it would appear on the back of major government contracts. This dependence on government contracts, the company’s CEO claims, has in fact created serious challenges: ‘…A great deal of our civil infrastructure work has been with the Government and their reduced revenue makes it difficult to: one, get paid for work completed; and two, continue working on Government-funded work in the absence of any guarantee of getting paid’.[122]
He adds, ‘to attempt to counter this, Wild Cat Developments is pursuing work that is not directly or completely funded by the Government; for example, ADB, JICA or World Bank funded projects and/or privately funded projects’.[123]
A few months after the Wild Cat Development deal, LBJ acquired a Wild Cat sister company, the airline South West Air, through Remington Limited.[124] South West Air is a ‘charter aviation company providing both fixed wing aircrafts and rotary wing services across Papua New Guinea’.[125]
O’Neill also acquired, through Wildcat, stakes in two additional businesses:

  • 50% of the joint venture Koroba Wildcat JV Limited,[126] a company registered in September 2015, which involves a number of local level governments; and
  • The Wildcat Golding Joint Venture [127] registered in December 2014. It is a partnership with Golding PNG Limited, a subsidiary of the Australian company Golding Pty Limited ‘one of Queensland’s largest privately owned civil infrastructure and mining services company’, according to their website.[128]
The formation of the Wildcat Golding Joint Venture (JV) saw the company awarded at least one major construction contract.
In December 2014, it was awarded a K84.5 million contract to construct bridges in West New Britain. The contract was almost completely[129] funded by the Asian Development Bank.[130]

Network Map: Peter O’Neill’s connection to ADB funding
Last, but not least, is LBJ Investments’ acquisition of 407,000 shares in the insurance brokers Insurance Partners (PNG) Limited,[131] during June 2014, giving O’Neill a 37% stake in the business. LBJ purchased its shares from Barry and Jason Tan. Additionally, O’Neill’s accountant,  Joseph Kup, owns 16% of the shares in the company, which he acquired in 2004, giving the two a controlling interest.[132]
According to its annual return for 2015 Insurance Partners has 20 employees, gross assets of over K20 million and net assets of about K3.5 million.[133] In both 2014 and 2015 the company made an operating profit of around K2.5 million.[134] According to market analysts, Oxford Business, Insurance Partners is a firm known for ‘specialising in government business’.[135]
Selling off some jewels from the crown?
Towards the end of 2016, nine moths out from a national election, we see the first ever apparent contraction in O’Neill’s business empire. In this period Peter O’Neill sold off a number of his more recent acquisitions to a company called Iaraguma Limited.
Iaraguma is owned by Theophilus George Constantinou.[136] Constantinou is a descendent of one of PNG’s wealthiest and most influential migrant families, whose fortune has been made over a period of decades, in PNG’s building, construction and hospitality industries, with interests also in Queensland and the Solomon Islands.[137]
The Panama Paper investigation, also revealed that Constantinou is linked to a company incorporated in the British Virgin Islands, a jurisdiction famed for its opaqueness.[138]
The businesses sold to Constantinou have declared net assets of over K22 million, although much of the financial information is seriously outdated and net assets do not normally reflect the true or full value of a business. The companies sold include, Insurance Partners Limited, Wild Cat Developments (since renamed) and Southwest Air.
Table showing some of Peter O'Neill's recent company sales
Table 3: Peter O’Neill’s recent asset sales to Iaraguma

In December 2016, O’Neill also sold his interest in Melanesian Travel Consultants to the Chinese national, Yuewei Ni.[139]

_____________________________________________
FOOTNOTES
[95] PNG China Business Consultants Limited, Notice of issue of shares, Investment Promotion Authority, 17 September 2008
[96] PNG China Business Consultants Limited, Annual Return 2008, Investment Promotion Authority
[97] PNG China Business Consultants Limited, Foreign Enterprise Certification as at 7 March 2017, Investment Promotion Authority
[98] Abbot, G. (1995), ‘Dirty Larry,’ The Sun Herald, November 12
[99] Safihao, J (2008), ‘Firm boss shot dead,’ PNG-Port Courier, May 28
[100] National Capital District Commission website (accessed 6 March 2017)
[101] L&A Group of Companies company website, Company profile (accessed 31 May 2017)
[102] L&A Group of Companies company website, ibid.
[103] Entity extract accessed on the Investment Promotion Authority website 31 May 2017
[104] Dove Funeral Services Limited, Company Extract, Investment Promotion Authority
[105] L&A Group of Companies company website, www.laconstruction.com.pg (accessed 31 May 2017)
[106] Claredale Limited, Company Extract, Investment Promotion Authority
[107] Kelola, T. (2010), ‘O’Neill is Treasury, Finance minister,’ PNG-Post Courier, 27 July
[108] Melanesian Travel Consultants, Company Extracts, Investment Promotion Authority and share transfer documents.
[109] L&A Group of Companies company website, Company brochure (accessed 6 March 2017)
[110] http://www.paddyshotelpng.com/ accessed 12 March 2017
[111] Callick, R. (2011), ‘PNG vote weakens link to Michael Somare era,’ The Australian, August 3.
[112] https://www.theguardian.com/world/2011/dec/14/papua-new-guinea-prime-ministershipaccessed on 31 May 2017
[113] http://www.smh.com.au/world/oneill-elected-png-prime-minister-20120803-23kjr.htmlaccessed on 31 May 2017.
[114] National Airports Corporation, Historical shareholding, Investment Promotion Authority as shown on 6 March 2017
[115] Kumul Minerals Holdings Limited, Company Extract, Investment Promotion Authority; Petromin PNG Holdings Limited, Notice of change of shareholder (Share Transfer), Investment Promotion Authority, 5 June 2013
[116] ‘O’Neill announces Graham as new Kumul Minerals chairman,’ PNG Loop, 17 October 2016
[117] Wrakuale, Ancilla. (2012) ‘Modern funeral service opens in city’, The National, 30 March 2012.
[118] Beachmere Limited, Company Extract, Investment Promotion Authority and share transfer form accessed 28 May 2017
[119] Wild Cat Developments Limited, Notice of change of shareholder, Investment Promotion Authority, 23 January 2014
[120] Company Extract accessed on the Investment Promotion Authority website on 31 May 2017
[121] South West Air company website (accessed 7 March 2017)
[122] Wildcat Developments (2016) ‘A can do attitude applied PNG wide’, Asia Outlook
[123] Wildcat Developments (2016) ibid.
[124] South West Air Limited, Notice of change of shareholder (share transfer), Investment Promotion Authority, 9 March 2016
[125] South West Air company website (accessed 12 March 2017)
[126] Koroba Wildcat JV Limited, Company Extract, Investment Promotion Authority; Koroba Kopiago Holdings Limited, Company Extract, Investment Promotion Authority
[127] Koroba Golding Joint Venture, Business Name Extract, Investment Promotion Authority
[128] Golding company website (accessed 7 March 2017)
[129] The ADB financed over $28M of the $32M contract. 
[130] ‘Contracts Awarded for Loan Projects – Goods & Civil Works (December 2014),’ Asian Development Bank( accessed on 26 April 2017) 
[131] Insurance Partners (PNG) Limited, Particulars of Notice of change of shareholder (share transfer), Investment promotion Authority.
[132] Insurance Partners Limited, Company extract as of 27 November 2014, Investment Promotion Authority
[133] Annual Return accessed via the Investment Promotion Authority website, 7 March 2017
[134] Financial Statements attached to the Annual Returns accessed via the Investment Promotion Authority website, 7 March 2017
[135] The Report, Papua New Guinea 2014, Oxford Business Group (page 95), accessed on 29 May 2017
[136] Iaraguma Limited, Company Extract, Investment Promotion Authority
[137] Gray, S (2008), ‘murdered businessman buried in Brisbane’ Sydney Morning Herald (accessed 7 March 2017).
[138] International Consortium of Investigative Journalists, Offshore Leaks Database, Panama Papers (accessed 6 March 2017). The Panama papers revealed the registration of a company called Allenbridge International Limited incorporated in the British Virgin islands with an address in Hong Kong, and with the other known PNG businessman, David Hunter Cox as another shareholder alongside Theophilus Constantinou.
[139] Melaesian Travel Consultants Limited, Company Extract, Investment Promotion Authority accessed 28 May 2017

CONCLUSION TO PART I: THE THIN GREEN LINE

Arguably, Peter O’Neill is Papua New Guinea’s most successful politician and businessmen. While climbing the political ranks, he has amassed a fortune that spans a vast range of sectors.
O’Neill is not the first leader to excel in politics and business. The 20th century has produced notable examples. Italy had Silvio Berlusconi, the United States, Donald Trump, the Philippines, the Marcos family, and in neighbouring Indonesia, there is the vast fortune commanded by the Suharto family.
As each example hints, juggling political and economic power, is fraught with dangers and tensions.
O’Neill felt the turbulence first hand, when his initial taste of public and private power, came under the spotlight of two commissions of inquiry.
Since then, these potential tensions between his public mandate and private interests, have only increased in number, as O’Neill commands a business empire that has benefited from lucrative contracts given out by the Government of Papua New Guinea.
There is no evidence on the public record to suggest these contracts involve the improper use of power. At the same time, given O’Neill’s alleged use of proxy shareholders, it is seemingly impossible to properly scrutinize his conduct. And that is to assume there was an agency capable of conducting a credible investigation.
The enduring risks posed by this close fusion of political and economic power, for a transparent democracy, will become apparent as we delve deeper into the O’Neill empire in Parts II and III of The Midas Touch.

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MRDC BOSS SANGA MANO ANOTHER TAX FRAUDSTER PAYS ZERO TAX OWES OVER 600K

June 21, 2017, 7:02 pm
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The Mineral Resource Development Company (MRDC) is a State owned entity that manages landowner equity interests in mining and petroleum projects on behalf of landowner companies. Augustine Mano has been the Managing Director since March 2008.

In his report for 2009, the Auditor General recorded his concern that Augustine Mano was avoiding paying tax on K600,000 a year, 80% of his total remuneration:
I noted that a “Professional Services Agreement” was signed on the 15th of May, 2008 between MRDC and the Managing Director as the “Incumbent Professional” of SMA Investment Limited “the company.”
SMA Investment Limited is a Papua New Guinea registered company owned by Augustine Mano as the sole shareholder.
The Auditor General’s report continues:
Section 4 of the contract states that MRDC will pay the Managing Director and SMA Investments Limited a monthly fee of K62,500 (K750,000 annually, GST excl.) based on an invoice provided by SMA Investment Limited.
However, the Managing Director had written to the payroll division of MRDC advising that his package be structured into two components; where K150,000 was to be paid as salary to him through the MRDC payroll and K600,000 was to be paid to SMA Investments Ltd at K50,000 per month. The K50,000 monthly payment to SMA was divided into Housing (K20,000), Vehicle (K20,000) and other allowances (K10,000).
A managing director or director of a company is always a natural person. The Managing Director of MRDC is an employee of MRDC. All benefits of any employees are classed as salary and wages and must be taxed according to the tax rules applicable. The current arrangement of the Managing Director can be viewed as a measure to reduce or evade tax.
Should MRDC continue to allow this, the IRC can deem the payments as net of tax and demand MRDC to pay the tax. There are penalties for both the employer and employee pursuant to Section 361 of the Income Tax Act, 1959. Such a scenario can lead to undesirable consequences for both parties.
I recommended to the management to seek independent tax advice from reputable accounting firms immediately on the consequence of this arrangement and assessment of the underpayment of tax.
The management should withhold making the monthly payments to SMA until the tax advice has been sought.
Tax packaging of the Managing Director’s salary and wages should then be done following this advice.

The Auditor General report records that Management responded to his concerns by saying the salary packaging was done “to cater for his current needs… as opposed the view that this was done to evade tax”.
According to the Auditor General, management claimed this “is an acceptable practice. It was applied with previous Managing Director’s and there were no issues raised in either the previous audits or the tax office to-date. Management will, however seek independent tax advice to confirm the above arrangement”.
But in 2011, the Auditor General found the practice was still continuing and no independent advice had not been taken:
In my 2008 management letter to the Board and management of MRDC, I have raised concern that this arrangement may be viewed as tax evasion. I have recommended in that letter, that the management of MRDC should seek independent tax advice from reputable accounting firms immediately on the consequence of this arrangement and assessment of the under payment of tax.
I also recommended that the management should withhold making the monthly payments to SMA until the tax advice had been sought.
The Management of MRDC had responded to my 2008 management letter points, stating that the restructure was not an attempt to evade tax, but was a normal practice applied by MRDC to cater for the Managing Directors‟ current needs.
Management also agreed to seek independent tax advice to confirm the above arrangement.
However, during the course of my audit of the year ended 31 December, 2009, I have not been provided with any reports compiled by the independent tax advisors to confirm the above arrangement.
The Auditor General’s report continues:
Due to the inaction by the MRDC management to seek further advice and clarification from IRC, I was of the view that the management is deliberately allowing this anomaly to continue.
The Auditor General’s report for 2012 again raises the issue of the tax avoidance and states this was reported to the relevant Ministers in June 2013.
At this point the paper trail dries up. In his 2014 report the Auditor General stated MRDC had failed to submit its financial statements for the years ended 31 December 2012 or 2013 for inspection and audit:
The Company had not submitted its financial statements for the years ended 31 December 2012 and 2013 for my inspection and audit.
 

SMA Investments
The Company Extract from the Investment Promotion Authority shows Sanga Augustine Mano is the sole shareholder in SMA Investment Limited.

Mano, MRDC and SMA

The Auditor General reports show Mano was engaged by MRDC through a contract with Mano’s company SMA Investment Limited.
SMA Investment is part of a larger network of companies connected to Augustine Mano.





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Peter O’Neill – the most expensive PNG Prime Minister in history

June 22, 2017, 2:14 pm
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“Prime Minister Peter O’Neill is costing the people of Papua New Guinea a fortune,” former Prime Minister Sir Mekere
Morauta said today 
“The Government has severe cashflow problems. There are no medicines in hospitals and health centres; schools have not received nearly enough money to operate; businesses are owed millions by the Government, but Treasury and Finance seem to have no problem paying the huge expenses the Prime Minister runs up daily.
“On top of the damage he is inflicting on the country and the people through gross mismanagement of public finances, high debt and poor health and education services, he constantly flies around the country and the world in the Falcon jet, hires helicopters, stays in expensive hotels – all on the public purse.
“I am told he has a permanent suite at the Airways Hotel, where he has lived for the last five years, eats and drinks there, when he has a perfectly good house on Touaguba Hill, and of course Mirigini House, at his disposal. How much does that cost the taxpayer?
“Almost every week he flies overseas to Australia, Singapore or Hong Kong. What for? What state business is he conducting? Or is it personal business?
“Recently the Falcon was out of service, so he demanded Air Niugini provide a Fokker for him to fly to Australia. A plane was pulled out of scheduled services – too bad about the poor passengers whose flights were disrupted – and he took the whole plane for himself.
“Why can’t he take a commercial flight like the rest of us? Between Air Niugini, Qantas, Virgin and Philippine Airlines, surely he can find a flight going near his destination,” Sir Mekere said.
Mr O’Neill and his hangers-on are currently flying all over the country at taxpayers’ expense, attending rallies, openings and other events.
The people of Papua New Guinea are paying for the O’Neill-PNC election campaign, while other party leaders and candidates must meet their own expenses.
“Mr O’Neill has promised to sell the Falcon so many times, yet he continues to use it as if it was his personal aerial PMV”, Sir Mekere said. “Question: When is a promise not a promise? Answer: when it is made by the current Prime Minister of Papua New Guinea.
“This particular promise is costing the people of Papua New Guinea a fortune. The luxury jet is worth K145 million, which should already be in Consolidated Revenue, where it could be applied to health or education of maintenance of infrastructure.
“Instead, it is being used to prop up the Prime Minister’s election campaign.
“On top of that, how much does it cost to operate the Falcon each year, money that should also be going into Consolidated Revenue?”
Sir Mekere said Mr O’Neill should stop treating the Office of the Prime Minister as his own personal piggy bank. There are very specific rules applying to the privileges of that office, and they do not include electioneering.
What other privileges, campaign tools and implements of office is the Prime Minister applying to his election campaign, Sir Mekere asked. What other public funds and assets are being used or misused during the election? Are senior public servants being used as campaign tools? Who is paying for PNC’s massive advertising campaign?
“Once the election is over and a new Government formed, these and other issues relating to Prime Ministerial activities will have to be investigated,” Sir Mekere said.
“One of these includes whether the Prime Minister is hiring South West Air for travel. This airline was formerly owned by Mr O’Neill until he sold it – to a friend - late last year. The time frame, frequency and the cost of any hiring by the Prime Minister should be established to remove any suspicion of impropriety.”
On 19 June a Lae resident took a photo of a South West Air plane that carried the Prime Minister and his entourage from Port Moresby to Nadzab, where he was met by a large contingent of heavily armed policemen, before taking a helicopter to Boana for an election rally for the Member for Nawae.
Did PNC or Mr O’Neill pay for these charter flights, or did the Government, Sir Mekere asked.

“These are important matters of public interest and should be pursued vigorously to get to the facts of the matter.”

PRESS STATEMENT
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IT'S JUST BUSINESS FOR POWES AND BUBU SUSAN

June 22, 2017, 4:06 pm
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Powes Parkop went to Sydney on On Friday 12th May 2017 and returned late afternoon Sunday 14th May 2017, while in Sydney he met with Susan Merrell to plan on the upcoming elections. Merrell is by now a well known surrogate who has made a living crafting skills in doing hit pieces on opposition parties she is paid to destroy.

Within the walls of  NCD Governor's office and the City Hall staff offices there is now a growing air of suspicion that there is an ongoing love affair between Susan Merrell and Governor Powes Parkop. Whether this is true or false it is only shared by a few privileged ones including a source very close to Governor Parkop. So far as our source can recall, Susan Merrell started visiting the Governor's Office early this year.

She was given a lot of time and space to be with the Governor and was given a fully armed body guard to be with her on call 24 hours while she stay up at the Stanley Hotel suites.

Our source recalled several times seeing Mr Parkop and Merrell privately his in office, our source reveals the meetings were centered around her role to be a spokesperson for the Governor and was also seen was pushing her luck to become the Public Relations Guru and the face of his cleaner/safe Port Moresby campaign initiatives.

As one commentator put last year:
The woman who loves ridiculing PNG anti corruption fighters and anti corruption efforts is in Port Moresby helping to boost the growing unpopularity of NCD Governor Powes Parkop.
Using the issue of Violence Against Women as their launching pad, they have all of a sudden taken their eyes away from the nation's treasury chest long enough to notice that they have lost touch with the people and their issues close to their hearts so they need an issue close to the people's hearts to reconnect with the people.
Who is Dokta Susan Merrell or Powes Parkop for that matter in this fight?? I have Never seen or heard any of them being vocal about this issue.
The issue of Violence against Women in PNG is real but these people making noise now are FAKE with their own ulterior motives.
Dokta Sue Merrell is probably running low on Christmas Money so decided to come "butter" and "grease" PNG Pollies for some "Krismas Koble".
Meanwhile Powes Parkop is using this as another election gimmick and political propaganda. Even the West Papua Issue has all of a Sudden reemerged on the Governor's list of issues. He has not been vocal on the issue on the floor of Parliament at all, except Governor Gary Juffa.
Please stop using genuine issues affecting our vulnerable people to cover from your own little personal agenda. Leave our issues to the people who truly have caring hearts to take the lead in addressing them.
As a politician Powes has failed to take a stand in the fight at the policy level inside Parliament. Now he wants to come out and make noise and put up a public show because 2017 is around the corner and he needs the votes of PNG women. His recent media attacks on the Community Development Minister are a shallow sideshow and very typical of someone wanting to ride the latest popular and hot issue for selfish popularity gains.
This is a tried and proven method of Susan, she baits leaders who are vulnerable and exploits them to the fullest. Case in point the former Government Minister and now opposition MP, BELDEN NAMAH whom she baited  to use him for money and when Namah found out what her tricks were he dumped her.  She has never met Belden Namah in person. She only spoke with him over the phone and exchanged texts and emails in the hope of getting a job at 250 thousand dollars per annum ($250,000.00) which was rejected.

However she has seen success defending the Prime Minister after finding new friends in the likes of Peter O'Neill Foundation Chairperson and PM's unofficial 2nd wife/mistress Lady Yumei Ni Cragnolini and Prime Minister's lawyer Tiffany Twivey. Tiffany never liked her from the beginning, she (Susan) hated Tiffany she made this known to a friend on Facebook,

“Her legal practices, set up with Maladina, I believe could be a front for laundering money through her trust account. The amounts that it's mooted she was paid for her advice is far too high. It's a way of getting money, supposedly legitimately, out f (sic) government coffers. Maladina is a very shrewd and crooked politician (sic) (great shame, I've met him and liked him a lot) Had a drink with him one night in POM when Tiffany had left for Lae. (She'd introduced me.) Didn't know then about the affair - found out the next day when she returned. But the private date had obviously been playing on her mind. It was moses idea and was perfectly innocent apart froma bit of harmless flirtation.”
“At a guess, I'd say he's hanging on to the relationship because he's using her practice to extort money. Just a guess.”
“Oh yes. Her appetites are legendary. That's why I'm wondering why Moses is putting up wit (sic) it. Can only be money.”
“I'd also like to get back at Twivey, but I feel she's a diversion. She's selling herslf (sic) to whoever will give her sex. And, to quote that saying again - she's the hole and not the doughnut.”
“Seems so. She's obviously frightened of you. People are sending me info about her. Unfortunately, everyone knows things but no one is willing to go on record or provide any verification and I won't publish unless I'm sure.”
“It was the PNC fundraiser last year. I was still talking to Namah at that point and he told me she publicly grabbed his bum and he lost his temper with her as he had his reputation to think of. LOL”
“I do know that. That's what frightens me. She is a first-class bitch but I'd hate her to be chopped to pieces.”
“I think she has really stuffed up her life as she knew it - badly. She's made so many enemies. I doubt whether she'll bounce back from this. I predict Moses is using her practice to launder money and that's why he stays with her because apparently she has a voracious sexual appetite and will bed anything on two legs - and that is something I know.”
Both Susan and Parkop discussed in closed doors. Also the details of their initial few meetings is not known by our source and others. But in a casual drinking session between work colleagues sometime around early April 2017, it was revealed by the Governor's close associate (someone who is close and has unlimited access to the Governor's work desk) that despite the buai ban (affecting all of Governor's base votes in the settlements) and the hatred poured out in Facebook and social media against Powes Parkop, he will still win back his seat. The close associate went ahead and mention something like the power of information in today's day and age can be utilised to divert attention, discredit good people and used to achieve desired targets. This was further revealed in the early campaign weeks, when the same close associate mentioned to our source and others how Powes will win this election. The associate said, there is a plan we are currently working on with some media and IT consultants to fight back some of the governors strong rivals.

All these events seemed unrelated to our source but when Susan Merrell went on Social Media posting screenshots of Facebook chat conversations between different NCD candidates, that's when our source realised what was going on all this time.

Powes Parkop placed all bets on her to come good after we now confirm she was paid a hefty sum of money to rally women support behind the Orange Shirt Day March.

Susan Merrell used some article she wrote back in 2010 about the clandestine operation by PNGDF Air Wing to fly fugitive Solomon Islands Lawyer Julian Moti out of PNG. to claim prominence. In her own circle of friends she has the PMs unofficial 2nd wife and mistress Nii Cragnolini, PMs Lawyer Tiffany Twivey and Powes Parkop's mistress and Yoga queen Fazilah Basari all available at her disposal. For her services to arrange the Orange Shirt (Violence Against Women March) she was paid a hefty sum. She was brought in as a consultant and paid over $160K.

She is a media whore and those who pay for her services are happy clients.
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LUPARI AND GAMATO MUST GO!

June 25, 2017, 11:01 pm
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PRESS STATEMENT

Electoral Commissioner Patilias Gamato and Election Steering Committee head Isaac Lupari must be sacked or stood down immediately to prevent further election chaos occurring.

They must be replaced by competent, independent people capable of conducting the election effectively and honestly.

Former Prime Minister Sir Mekere Morauta said today that Mr Gamato and Chief Secretary Lupari have compromised the election. “Many people expressed fears previously that the election would not be free and fair. Under Mr Gamato and Mr Lupari we are seeing those fears come true,” he said.

“The election has barely started and reports are coming in from all over the country of chaos, delays, irregularities and problems of all sorts. The public does not have any confidence in Mr Gamato and Mr Lupari.

“There is growing disatisfaction with the conduct of the election, and if it continues the way it has begun, the public cannot have any confidence in the outcome.”

Sir Mekere said he had personally been told of many irregularities regarding the electoral roll, including hundreds of ghost names, registered voters being left off in very large numbers after appearing on the preliminary roll, discrepancies in voter numbers between wards and LLGs and in comparison with the 2012 roll.

“We even have candidates saying they they have just discovered they have been taken off the roll,” he said.

“The roll is not available to the public. Why?”

There are widespread allegations of tampering with ballot boxes and ballot papers and of duplicate ballot papers being smuggled into the country. There have been numerous reports of ballot papers being in the possession of unauthorised people.

Some Police and Defence Force personnel are said to be refusing to provide election security because their allowances have not been paid. It would seem that payment of allowances is being done very selectively.

Serious allegations about bribery and corruption have been made. For example the Department of Finance is alleged to have paid a large sum of money into an election official’s private account to pay “poll officers”. There are numerous reports that one prominent candidate in the Highlands has been handing out demonetised K100 notes, purportedly hijacked in transit between the central bank and an overseas destination. Meanwhile the Governor of the Bank remains silent on the hijacking of the notes.

Questions arise about many of the election-related contracts and provision of goods and services.

A helicopter company owned by a candidate has been contracted to transport boxes and papers in Central Province. Defence Force personnel in the Highlands are residing in properties owned by people with connections to PNC.

Reliable sources have reported that the Defence Force team in Ialibu-Pangia has been removed and replaced with hand-picked favorites on the personal instruction of a candidate, Prime Minister Peter O’Neill.

In the absence of election security, according to various reports on social media, polling material is being handled and transported without any scrutiny. Other logistical problems are being reported elsewhere.

Polling has not proceeded in a number of areas, reported to include East Sepik, Oro, Kairuku-Hiri, Gulf, Manus, Madang and South Fly.



“These reports, from the first day of polling, signify that the election is in chaos,” Sir Mekere said. “The only way out is to get rid of the people who caused this mess and replace them with independent, honest and competent people.”
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WE DESERVE THE CRAP FROM THE BEASTS WE FEED

June 26, 2017, 6:56 pm
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by STANFORD HARO
But when we look at what we have allowed to happen, we have to admit that We Are Cowards, We Are Accomplices!

Justin Tkatchenko has Lied about his Citizenship, is a thief of Tax credit and still has become our Parliament Member, our Sports and National Events Minister and even our face to the world as the Minister for APEC!

Several IRC, IPA records are attached for you to read and judge and you can logon to IPA, IRC to confirm it: system records are undeniable!

His company PNG Gardener (Kitoro No.33 Ltd) was removed 4 times by IPA due to failure to renew since 1990, we rewarded his company 100 millions Kina in government contracts. As a shareholder and director, he never registered himself as a taxpayer, he never declared his income tax, and the worst of the worst, he stole K670,000.00 in tax credit from another company to pay his own tax debt. HE IS A THIEF! Our very senior IRC officers helped him.

His cronies ran over our poor helpless people outside his house, trying to collect monies owed to them, he had a helpless settler abused and jailed for resisting being filmed in his home and our policemen helped him!
How can this happen and we are his Accomplices! 

A simple Tax Search showed unexpected shocking records revealing a serious crime: A Tax credit thief! IRC Commissioner asked: how you get such information? The answer is: This is God’s Will!  Justin is a Thief, God revealed this to us!

How many charges have been filed against him? Many! We helped him hide, grow fat and hold power. We helped him getting more and more ruthless and lawless! He is a criminal, he is a hungry vampire and dirty jackal!

Lady Ni Yumei, the most powerful and successful business woman, who also calls herself "wife" of Prime Minister Peter O'Neill, is very well known by us. Some of us have been “lucky to enjoy” her disgusting yelling and shouting, because we are stupid and poorer, small! Some of us will never forget her boasting: “if I call some Members of Parliament, Ministers or government officers, or police commanders, they will all crawling to me like Dogs”

Since 2012, her company L&A Construction Ltd got hundreds of millions in government contracts, some were never Tendered, and some didn’t have any work done, but payments were still made by the government.

What a lucky Lady! How fortunate is PNG!

When trying to do a tax search on her, every IRC counter officer would confirm to you that she never registered as a Taxpayer.  IRC has no record of her. Of course, she never declared her income and never paid any one Kina to IRC in personal income tax! By the way, you also will find out that L&A has over K17,000,000.00 outstanding salary tax debt!

Justin Tkatchenko, the most trusted and protected Minister of Prime Minister and Lady Ni, wife/mistress of PM, PNG’s most powerful successful business woman are no strangers to us! We feed them so well and they are getting fat and fatter! In their eyes, PNG is their paradise without laws and regulations!
They all boast on how splendid their Palaces and properties in Australia and you can visit to PNGBLOGS to enjoy their glories! You will not be disappointed!

Our teachers are crying for their wages, our policemen fight for their allowances, many of us endure delayed fortnight pay, we are always worried on being able to buy our food, and keeping our kids at school! Why and how they can collect millions of Kina so easily? How can the send hundred of millions of Kina out of PNG without paying one toea in tax? Even they can steal other companies tax credits to pay their tax debt! How and why can this happen?

We watch them robbing and corroding our country and our government, through cruelty and madness! They manipulate and control the courts, police, media, treasury, government is their playground! It is rare for us to put efforts to stop them and most of us helped them, directly or indirectly by doing nothing! There are several true warriors fighting them, such as Sam Koi and his Task Force team! We all know the sad end of these warriors, they were disbanded by these crooks and abandoned by us! We are ruled through our fears! We helped them to create those fears!

This is an amazing story! We all played our roles, we all helped them to bully and rob us, our country our people! We have become Cowards and Accomplices!

Can we be little bit brave to say No? Can we unite to Stop them! Papua New Guinea, our country, the beautiful paradise, is so blessed by God beauty, rich resources and the kindest people in this world! Now this country, this nation is bleeding, it is dying! Without law without integrity without pride, where can we stand? Where is our future?

This is an amazing story! We all played our roles, we all helped them to bully and rob us, our country our people! We have become Cowards and Accomplices!

Can we be little bit brave to say No? Can we unite to Stop them! Papua New Guinea, our country, the beautiful paradise, is so blessed by God beauty, rich resources and the kindest people in this world! Now this country, this nation is bleeding, it is dying! Without law without integrity without pride, where can we stand? Where is our future?

Look at the famous "Star Mountain Hotel" project.  Total cost will be 1.2billion Kina(1,200million, costs 3 times more than Stanley Hotel), 400 hundred rooms, apartments and Vision City. If 100% occupancy, income is about 100 Millions, it even cannot cover loan interest, how can it make profit?

Our NEC approved it and invested 350 million Kina, and mortgaged it to bank. Simply robbed landowners heritage and when it fails to pay bank loan interest, everything will be taken away by the bank, only billion kina debt left to the locals!

Yeah, Heartless and shameless! They just did it, did it to our innocent, poorly educated, but well intended local landowners!

But we are educated, we know this is just a bloody robbery and the victims are our people! And we know that they will not stop! They are not just Criminals, they are hungry vampires!

We are Judges, lawyers, police officers, we are IPA, IRC, Justice department, foreign affairs, NCDC government officers and employees and we have the duty to bring Justice back, to re-build our reputation and re-store our dignity!

We need to unite and work together, for our mothers sake, We are not Cowards, we are not Accomplices, we are brave and strong enough to stop this lawless and ruthless crimes!

Sadly, we just learned that an IRC officer was suspended for just doing his job in helping clients to do tax search! Actually, he never knew that Minister Justin is a tax credit thief, how could he know? There are half a million company files there! God broke this criminal secret to us!

So, let's see what Justin Tkatchenko is doing now? During an interview with LOOPPNG, he kept lying and said he had lodged all tax returns to IPA, (-- haha, we all know that Tax declarations are made at IRC, not IPA, our Minister is very cute to lodge his Tax to IPA), Justin avoided to answer the fact that he Stole other company's tax credit/money of K670,000.00. He accused people of just trying to damage his reputation. What reputation? Unfortunately for him the IRC Commissioner has not denied that the records are all true! The records we are seeing are true tax search records from IRC!  The system records are undeniable, just like your bank account statement! You can go to IRC to confirm by yourself!

But compare to the quick suspension of that poor IRC staff, Our Commissioner might be busy to cover Justin's asshole!  Continually our leaders become his puppets and Accomplices? We hope she will not, she is a Papua New Guinea and she’s got power to do the right thing! Madam, please do some right thing to save our future!

Jesus, does Justin have any merit and dignity left? He just brushes aside the evidence of his stealing and cheating, because he is busy campaigning in the election. He said he needs one more term! My God, what will be left for PNG if that happens?

We are good people, we know we still have consciousness in our hearts, we know what's happened and what is happening! We are just scared! Actually
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ELECTION PURPOSELY RIGGED FOR PNC

June 27, 2017, 5:42 pm
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PNG BLOGS first reported out of the 8 million population, less then 6 million will vote. So where do you reckon the rest of the 4 million plus ballot papers would/has gone? According to reliable sources from within the electoral commission, those remaining ballot papers have already been marked and placed in separate ballot boxes containing identical serial numbers of those that would be distributed to specific polling centers.  This was the case yesterday. After polling, those ballot boxes taken from the polling sites will be replaced during transportation with the tempered ballot boxes.

1. Firstly the NCD Police Operation Commander Assistant Commissioner Sylvester Kalaut told the media that some NCD Election Manager was apprehended by police at Six mile with over K100 000 in his possession. He was then brought over to Boroko Police Station for questioning and was later brought in for interrogation by the CID officers. Assistant Commissioner Kalaut also said that police also found in the Election Managers possession a letter from a particular candidate containing instructions as to how the money would be broken up and distributed.

2. Electoral Commissioner Patilias Gamato came out in a media conference this afternoon confirming the deferral of polling for NCD stating that the main reason was because polling officials didn't want to take up their posts because they were not yet paid. Commissioner Gamato also confirmed reports of NCD Election Manager taken in for questioning. He said the police called him for clarification and he confirmed he was aware of the Election Manager being in possession of cash. Mr Gamato clarified that the money was extra money for polling officials allowance.

Analysis of the Situation

1. No polling officials have came out so far to speak to the media about unpaid allowances. If fact, the footage from TV Wan news and EmTV news showed polling officials quietly waiting for instructions from the Electoral Commissioner. In fact several polling officials when interviewed on screen said they got the call from EC to stop the polling hence they had to pack up. Even a buai seller from the street will tell you the Electoral Commissioner is not telling the truth.
2. The Electoral Commissioner has also confirmed reports of the Election Manager being in possession of cash for polling officials allowance. Is that the same Mr Gamato who told the media and PNG a few days ago that polling and counting officials will not be paid cash but their money will be transfer into their respective bank accounts. NCD Operation Commander Assistant Commissioner Sylvester Kalaut also reaffirmed Commissioner Gamatos earlier remarks about monies paid directly into the accounts. Once again Commissioner Gamato has clearly contradicted his earlier remarks. He should clearly explain about the cash on the NCD Election Managers possession and most importantly he has to explain about the letter from a particular candidate containing instructions as to how the money would be broken up and distributed.

PNG we have to be vigilant in this times. Our country is really going to the dogs
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2017 ELECTIONS WAS DELIBERATELY SETUP TO FAIL FROM THE START - JAMIE MAXTONE-GRAHAM

June 27, 2017, 9:23 pm
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by Jamie Maxtone-Graham
PNG 2017 national elections is a game of "high stakes power play" which is unfolding before our eyes, as we experience chaos in the first days of polling......People of PNG need to know who are the master puppeteers pulling the strings of their puppets from behind the scenes and who are these puppets in charge of delivering the 2017 national election.
There are Serious questions on everyone's mind that need to be asked...!
1. Is the whole election process fair and transparent?
Answer : No
Reasons;
a) updating of common roll has taken 5yrs but still remains incomplete and was done in total secrecy up until the last minute, only on polling day the common roll was released to the public, voters were given no opportunity to verify if their names were on the common roll or not, many names have been deleted from the roll, while many names were inflated in certain wards without explanation, all these activities raises suspicions in the voters and candidates minds.
b). Appointment of election officials was never done in a transparent manner. The job of the Electoral commissioner is a highly sensitive constitutional office, a professional recruitment organization should have been engaged to source suitable candidates from both local and abroad, this was never done, instead NEC bulldozed the appointment of Gamato without considering his background experience in running national elections, which now, regrettably, is evidenced by his inexperience...Gamatos appointment has raised doubts and suspicions in the minds of voters and candidates throughout Png.
c). The position of national election steering committee chairman should have been held by a neutral person, perhaps a retired court judge or a career public servant and not Isaac Lupari. Isaac Lupari is a political staff of prime minster Peter Oneill for many years, before being appointed chief secretary to the government. He served as prime ministers chief of staff which is a political position in the prime ministers office. There is now serious conflict of interest and bias in Lupari's role as the national election steering committee chairman. Lupari should have never been appointed to this position. This alone raises serious questions in the minds of voters and candidates.
d). The sudden elevation of Simon Sinai a relatively junior officer, (who happens to come from ialibu Pangia) to the position of deputy Electrol commissioner operations, in charge of the election process and logistics of moving election materials including ballot papers and boxes throughout the nation, raises serious questions in the minds of voters and candidates alike.
e). Nearly all returning officers and assistant returning officers were appointed by Simon Sinai after receiving names from MPs in government. This raises more suspicions in the minds of voters and candidates.
f). Printing of 10million ballot papers in Indonesia for 3 million eligible voters, giving extra 4 million ballot papers for Electrol commission to use, raises more suspicions in the minds of voters and candidates.
g). The secret Arrival of containers containing 10 million ballot papers from Indonesia and kept under tight security at ATS Defence force hanger at jacksons airport, media personal, candidates and scrutineers were denied excess by the military, this raises a lot of suspicions in minds of voters and candidates, especially when the defence for commander also comes from Ialibu Pangia.
h). The general staff of Electrol Comission had no excess to the containers containing ballot papers, the distribution of the ballot papers for the whole nation was done single handed by Simon Sinai with the help of Thomas teine the election manager for simbu, with some outside assistance from private people hired by Simon Sinai. Deputy Electrol commissioner was personally in charge of a task that normally juniors officers handled during previous elections. Such a high ranking officer making several visits to the ATS hanger every day and every night until all ballots were dispatched by the Australian defence aircraft to all the provinces, This seriously raises a lot of questions in the minds of voters and candidates.
i). Precount of ballots. Under election laws, it is a requirement for all returning officers to conduct a precounting of the ballot papers in front of all candidates scrutineers before ballot papers are put into ballot box for a particular polling place before being sent out the next day. No precount was done, ballots were allocated and moved to polling locations in total secrecy,,,,this alone raised a lot of suspicions in the minds of voters and candidates..
2. So Who are these puppeteers and puppets causing stress and anxiety to the people of Papua New Guinea????
a) the king puppeteer is the prime minister Peter Oneill himself and his sidekick puppeteer is Isaac Lupari, the master and his apprentice......the rest are all just puppets of these two, they include ministers, speaker of national parliament, members of parliament in government, heads of department , business associates and cronies,,
b) two biggest puppets in this election are the Electrol commissioner and the police commissioner, and they just do everything that Lupari tells them to do, sadly, they don't realize that the office they hold are constitutional office, separate from the executive government, now they have compromised themselves, which raises more doubts and suspicions in the minds of all voters and candidates throughout Papua New Guinea...
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THE GAMATO -LUPARI-PNC- ELECTION FIASCO

June 28, 2017, 3:08 pm
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Electoral Commissioner Patilias Gamato’s responses and comments at his media conference yesterday raise serious questions and concerns about the election and the mismanagement and irregularities that have been revealed, and confirm he is not in control of the operations.
Papua New Guinea deserves more than the unsatisfactory and contradictory answers from Mr Gamato and the suspicious silence from Isaac Lupari.
“Mr Gamato spent yesterday afternoon smiling away and treating legitimate questions as something to laugh about,” former Prime Minister Sir Mekere said today. “Very important questions were brushed aside as if they didn’t matter.”
For example where is the electoral roll? It is extraordinary that it is still not publicly available so voters and candidates can check its accuracy. “What are Mr Gamato and Mr Lupari hiding,” Sir Mekere asked.
Mr Gamato’s statement that voting would not be extended in areas where one-day polling was reduced to a handful of hours is totally unacceptable. “One-day polling means exactly that – ten hours, 8am to 6pm; no more, no less,” Sir Mekere said. “Mr Gamato seems determined to cheat thousands of people out of their constitutional right to vote.”
Sir Mekere said people were concerned to know had happened to the ballot papers that had already been filled and also those that were seized. Where are all the ballot papers and boxes now, legitimate or otherwise?
Sir Mekere described as contradictory and unsatisfactory Mr Gamato’s answers in relation to the arrest of NCD polling officials yesterday, allegedly with K184,300 in cash, ballot boxes and ballot papers and incriminating evidence on their phones and in written notes concerning an NCD candidate.
“ understand that the money did NOT come from the Electoral Commission, although Mr Gamato said very clearly at his media conference that it did, and that he was aware that the officer was holding the money,” he said.
“I hope the Police are investigating all those implicated, including the provider/s of the money. I also hope that charges will be laid swiftly to give the public some confidence.”
Mr Gamato said the cash was to pay poll workers, yet he and Mr Lupari are on the public record as saying that all payments to election workers are being made via direct transfers to bank accounts. They are on the public record as saying that all payments would go through a centralized system and made one week in advance. ‘Every payment will be done electronically to their bank accounts,’ Mr Lupari said last year.‘They will be paid one week in advance of their allowances’.
Where are the withdrawal and payment authorisations for this and other cash transactions already made, Sir Mekere asked. Where are the withdrawal and deposit slips, where are the acquittals for completed payments? Is it true that the Department of Finance has paid millions of kina into the personal bank accounts of election managers to pay officials?
“The answers given yesterday by Mr Gamato are not credible,” Sir Mekere said. “He and Mr Lupari should start telling the truth about the many polling failures and irregularities being identified.
“Why is Mr Lupari not by Mr Gamato’s side, as he has been at almost every election media conference for the past six months? Why is he campaigning for the Prime Minister in the Highlands today, and not in Port Moresby? Is it more important to fix the election in a few Highlands seats or to solve the nationwide crisis?
“Mr Gamato and Mr Lupari are treating the media and the public as fools. Their cover-up will not work.
“Public and security force vigilance have been instrumental in uncovering attempts to manipulate the election. The extent of the vote-rigging exposed in the first few days of polling means it is time for Police and Defence Force personnel to redouble their efforts.
“The future of Papua New Guinea’s parliamentary democracy is in their hands.


“Please, members of the Police and Defence Forces, stand up and protect our democracy and our future,” Sir Mekere said.
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WITH EMBASSIES AROUND THE WORLD BEING CLOSED, PNG IS ON THE VERGE OF INTERNATIONAL HUMILIATION

June 29, 2017, 4:30 pm
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byKERENGA KUA MP

It is with great sadness and disappointment that we learned of the unfortunate recent court decision in Washington DC to lock out PNG. Embassy staff following three months of arrears in rental payments.

The Parliamentary Leader and Member for Sinasina Yongomugl Mr Kerenga Kua said, "The O'Neill Government has spent a fortune during the campaign period telling Papua New Guinea, in a series of glossy advertisements, about how it has put PNG on the world stage. Hosting regional and global events has given us some recognition, but at the cost of so many other high priority areas like health and education.
"Sadly, it is that very world stage that will witness us shame ourselves as we close foreign mission after foreign mission. So far this year we have failed to pay UN fees calling the failure an administrative glitch to avoid further humiliation.
"High Commission and Embassy staff in Singapore, Beijing and Washington has had to go through long periods without pay. The situation became so bad that a particular embassy had to pull their children out of school and college. Appeal letters to the Minister and Foreign Secretary went unanswered. This has been going on for at least two years.

"We have already spent an enormous amount of time and resources preparing for APEC. Our foreign missions are in place for various
reasons, but specifically in relation to APEC, they will play a significant roll in getting world leaders and their staff here for the event. What is the point of spending so heavily on infrastructure for the event if we cannot afford to keep the doors of our front line PNG representatives open?

"We have raised the issue of our foreign missions before, and clearly there continues to be a lack of priority placed on the work of the public servants that we send abroad to represent our interest.
"We call on the Prime Minister, Peter O'Neill and his Chief Secretary to provide an immediate update to the nation on the financial status of our missions world wide. Papua New Guinean taxpayers must be given an explanation for your Governments failure to act, bringing shame on us all.

"The world is watching, especially the U.S. State Department Senate Committee, that occupies the same building in Washington DC as our Embassy. They will have front row seats when Marshall's come to remove Embassy staff and escort them out.
"We have sent some of the nations most respected former public servants and career diplomats to represent us globally.

"Our High Commissioner in London, Her Excellency, Winnie Kiap is also the Chair of the Board of Governors of the Commonwealth Secretariat. Support for her nomination and election last year came from commonwealth nation heads of mission in London and Brussels from Pacific Island nations and African and Caribbean nations, which is a clear indication that our missions are working hard to create avenues for PNG to gain further exposure in the global arena.

"Which mission will be next to close its doors thanks to the inefficient leadership of Chief Secretary Isaac Lupari? Perhaps if Lupari spent less time focused on the workings of the PNG Electoral Commission and more time managing the public service, further national humiliation could be averted.
"The Prime Minister and Chief Secretary must immediately disclose to the nation the true financial situation of all our diplomats and their respective posts," said Mr Kua.
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The Big Skim: Peter O’Neill Inc meets Don Sawong and Tos Barnett (The Midas Touch Part 2)

June 29, 2017, 5:29 pm
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In tandem with his political career, Peter O’Neill has built an extensive business empire with interests in almost every sector of the economy and assets worth many hundreds of millions of Kina.
The Midas Touch is an in-depth investigation by PNGi into the Prime Minister’s business empire and how it has been interwoven with his political career.
The Midas Touch is based on months of digitally assisted analysis of several thousand corporate records, hundreds of official documents and media reporting.
The Midas Touch is presented in three parts:
  1. The Secret Millionaire: Inside the O’Neill Empire
  2. The Big Skim: Peter O’Neill Inc meets Don Sawong and Tos Barnett
  3. Lift Off: High office is good for business

The big skim: Introduction

‘These things happened 15 years ago and it’s been cleared. Why don’t you talk about today’s issue instead of wasting your time on past doings?’
–  Dr Fabian Pok, Minister for Defence[1]
Papua New Guinea has a history of expansive anti-corruption investigations.
From Tos Barnett’s ground breaking probe into the forestry industry through to the more recent Commission of Inquiry into the Department of Finance, they have exposed a vast catalogue of abuses.
But that is often where it ends.
Inquiry recommendations clash against under-qualified and under-resourced law enforcement agencies, who fail to consume, much less digest or act on, the findings.
So the reports gather dust. Those censured move on with their life. Often in an upward trajectory.
Peter O’Neill is living proof that earning the condemnation of Commissioners, is no impediment to a long and illustrious political career.
In 2002 and 2007 O’Neill came under the respective gaze of two of Papua New Guinea’s most respected legal minds, former Supreme Court judge, Tos Barnett, and the recently retired Justice Don Sawong.
They accused O’Neill of being part of a corrupt network of actors, appointed to administer state enterprises and statutory bodies by Prime Minister Bill Skate. The Commissioners claim that under the leadership of O’Neill’s alleged first cousin, Wandi Yamuna, and a close commercial affiliate, Jimmy Maladina, this predatory network employed executive power to defraud the bodies they were entrusted to manage.
O’Neill is accused of being a key player and beneficiary of the scams.
The first Commission of Inquiry – led by Tos Barnett – centred on the National Provident Fund (NPF), now NASFUND. Governed by a 1995 parliamentary Act, the NPF was a compulsory pension fund for all private sector companies with over 20 employees.[2]
Although tabled in parliament, Barnett’s report has long been suppressed from the public. All that has been seen is an edited summary, serialized in the Post-Courier, and the inquiry transcripts, available for a time on the Prime Minister’s website during the Somare years. Both those sources have now been made available again, on the PNGi Portal, together with the main body of the Final Report.
The second Commission of Inquiry – led by Don Sawong – focused on the Investment Corporation of Papua New Guinea (ICPNG), and the Investment Corporation Fund of Papua New Guinea, an investment fund managed by the ICPNG.[3] ICPNG was set up in 1971 to help Papua New Guineans acquire a larger stake in financial and investment markets, which had been historically dominated by foreign enterprises.[4] Like Barnett’s report, Sawong’s findings have never been made accessible to the public (but can now be accessed on the PNGi Portal).
Echoing the concerns of Fabian Pok, it is worth asking though, is there any contemporary value in reflecting upon findings published a decade ago?
O’Neill and his co-accused, would argue both reports were flawed from beginning to end. To evidence this claim, Peter O’Neill might point to the fact charges relating to the so called ‘NPF fraud’, were dismissed by a magistrate, after his then lawyer, Rimbink Pato, made a no-case submission.[5] O’Neill’s alleged conspirator, Jimmy Maladina might draw attention to the recent Supreme Court decision[6] overturning his criminal conviction.
These are valid points. There are, however, counterbalancing arguments.
Principally, the Commissions of Inquiry were led by two of the countries most experienced and decorated judges, supported by legal and administrative staff. Although the Commissions did encounter some privations,[7]arguably they enjoyed the sort of experience, expertise and resources, often found lacking in the police and prosecution service.
Certainly the time it took prosecutors to mount cases against some of the key ring leaders in the NPF inquiry, point to systemic failings within the office. For example, the case against Herman Leahy, NPF’s former Company Secretary, was permanently stayed by the National Court in 2014 on ‘human rights grounds’, owing to the significant time elapsed, and prosecutorial errors.[8]
We also often find serious discrepancies in the quality of prosecutions. For example, charges against Jimmy Maladina relating to a Waigani land deal, were dropped in 2007, ‘due to insufficient evidence in the police file’. Yet two years before, his co-accused was successfully prosecuted and sentenced to six years hard labour.[9]
And while Jimmy Maladina’s convictions relating to the NPF tower fraud were overturned in 2016,[10]the original National Court sentencing put forward details suggesting that Maladina had actually confessed to the crime.[11]
So on the one hand, there is evidence to suggest that both Commissions of Inquiry were conducted with judicious oversight by senior legal professionals, with trenchant Supreme Court experience; on the other hand, it appears that those agencies charged with responsibility to enact Commission recommendations lacked the resources, expertise and resources to robustly discharge their duties.
There is also the point, that it is only now, in 2017 with the advent of the PNGi Portal, that the findings of both Commissions of Inquiry are publicly available for the first time and can be searched by keywords. Given the reports have yet to be public scrutinised, now is the time to launch the conversation.
Accordingly, there is merit then in carefully considering the findings of both Commissions, even if we do so with caution, given that the allegations were not adequately tested in court.
Once closely examined these Commissions of Inquiry open up a rare window into how state enterprises and statutory bodies, in command of significant financial assets, are administered.
If we accept the accuracy of their findings – with the above noted caveats – the Commission reports document in granular detail how corporate managers, in league with political patrons, conspired to exploit these assets for private gain, using a range of illegal techniques.
Rigged property transactions, inflated consultancy fees, bribery of public officials, forged documents, and beneficial interests hidden behind proxy shareholders, are all alleged to have been part of the core repertoires used by a predatory network of actors.
And it is claimed these illicit enterprises were conducted with support from the legal fraternity, who helped to set up front companies and launder the illicit proceeds.
Peter O’Neill, both Sawong and Barnett allege, was at the centre of these scams. To understand the substance of these claims, this instalment of The Midas Touch will catalogue key findings from the Commissions of Inquiry, beginning first with the 2007 report on the conduct of ICPNG executives and its agents.
It should also be remembered that the period to which these reports relate, was one of sudden growth for Peter O’Neill. At the time, he had been appointed by Prime Minister Bill Skate to head numerous state-owned entities – starting in August 1997 – which included taking the helm at the Finance Pacific group of companies (the ancestor of the Independent Public Business Corporation, IPBC, now known as Kumul Consolidated Holdings), as well as PNG Banking Corporation and its different entities, to name just a few.[12]
However, it is O’Neill’s private dealings in the real-estate market that earned the ire of Don Sawong and Tos Barnett. 
 ______________________________________________
FOOTNOTES
[1] Parliament Hansard, Tuesday 12 February 2013, p5
[2] Barnet, T. (2002) Commission of Inquiry into the National Provident Fund, Final Report, p19
[3] Sawong, D. (2007) Report of the Commission of Inquiry into the Management of the Investment Corporation of Papua New Guinea and the Investment Corporation Fund of Papua New Guinea and all matters relating to the Conversion of the Investment Corporation Fund of Papua New Guinea to Pacific Balanced Fund, p.xi
[4] Sawong, D. (2007) Ibid, p4.
[5] Krau, D. (2005) ‘O’Neill cleared of NPF charges,’ PNG Post Courier, January 12 2006.
[6] Maladina v Independent State of Papua New Guinea  SCRA 11 OF 2015; SC 1495 (20 April 2016) accessed on 7 June 2017 at http://www.paclii.org/pg/cases/PGSC/2016/11.html
[7] Sawong, D. (2007) Ibid, p.ix
[8] Leahy v Kaluwin [2014] PGNC 163; N5813 (7 November 2014), accessed on March 27 2017 at http://www.paclii.org/cgi-bin/sinodisp/pg/cases/PGNC/2014/163.html
[9] State v Veraga [2005] PGNC 103 (2 June 2005) http://www.paclii.org/pg/cases/PGNC/2005/103.html and  State v Veraga [2005] PGNC 43 (17 June 2005) http://www.paclii.org/pg/cases/PGNC/2005/43.html
[10] Maladina v Independent State of Papua New Guinea  SCRA 11 OF 2015; SC 1495 (20 April 2016) accessed on 7 June 2017 at http://www.paclii.org/pg/cases/PGSC/2016/11.html
[11] State v Maladina [2015] PGNC 146 (13 August 2015) at paragraph 37 accessed on 7 June 2017 at http://www.paclii.org/pg/cases/PGNC/2015/146.html
[12] See The Midas Touch Part 1 

Selling off the country’s silver – The ICPNG Commission of Inquiry

Following the election of Bill Skate as Prime Minister in 1997, Minister Fabian Pok was given responsibility for ICPNG.[13]  Its Managing Director, John Ruimb, was replaced by Wandi Yamuna[14]in February 1998. The following year, in August 1999, Vincent Auali became the Minister responsible.
Yamuna is alleged in the Commission reports to be Peter O’Neill’s first cousin.[15] From 1996 to 2010 he served as a Director at Pangia Enterprises, a company owned by Peter O’Neill, along with O’Neill’s then wife Cheryl O’Neill. Yamuna is now reported to be working directly for Peter O’Neill as his Deputy Chief of Staff.[16]
Network Map: O’Neill’s network of early core associates
The Commission of Inquiry claims that Peter O’Neill benefited from corrupt transactions executed by ICPNG’s management, primarily through the corporate vehicle, Port Moresby First National Real Estate (PMFNRE), which the Commission says was owned or controlled by O’Neill[17], a finding which also features in the NPF Commission of Inquiry.
On paper PMFNRE’s shareholders included:
  • Jack Awela (90%); and
  • Ann Sullivan (10%).
Sullivan is the daughter of O’Neill confidant, and family friend, Maurice Sullivan,[18] while Awela is alleged to be O’Neill’s uncle. PMFNRE’s Directors have included Jack Awela, Maurice Sullivan, Joseph Kup and Rupa Siba.[19]
Despite denials by O’Neill, the NPF Commission of Inquiry concluded that the ‘evidence is overwhelming … the true owner of PMFNRE is and was Mr O’Neill’.[20]
When questioned by the NPF Commission of Inquiry, Bill Skate opined: ‘Without really knowing whether Peter O’Neill owns the company or not … the impression generally that was widespread was Mr O’Neill was the owner of PNG [sic] First National Real Estate’.[21]
The ICPNG and NPF reports together detail a pattern of illicit activity prosecuted by a network of interlinked individuals, in which PMFNRE was a central node. The activity exhibited a number of core features:
  1. Ensure the untendered appointment of PMFNRE to manage state properties and assets, while granting them generous commissions in the event that these assets are sold.
  2. Exploit the financial difficulties of the fragile and debt-ridden state entities to justify a quick disposal of assets.
  3. If sold to persons or private companies that play a role in the network, ensure the property is undervalued. When the potential buyer is another state entity, ensure the asset is overvalued.
  4. Redistribute the fraud’s proceeds to the network of actors who helped set up the scheme.
The Commission alleges that through these mechanisms, senior managers and corporate agents used the garb of legitimate commercial deals to hide rigged transactions designed to illegitimately transfer wealth from a state enterprise – ostensibly belonging to the PNG public – and place it in private hands.
The NPF inquiry also suggested such behaviour may not have been limited to just the NPF and ICPNG:
While investigating these matters and while examining bank accounts of the companies and persons involved, the Commission located evidence that other very large sums of money were being “laundered” during that period through the books of Carter Newell and PMFNRE and that similar scams involving the Investment Corporation, the PNG Harbours Board and the DFRBF [Defence Force Retirement Benefit Fund] were occurring.[22]
We will now examine, in summary form, the particularly cases of alleged corruption, involving PMFNRE and ICPNG, documented by the Commission of Inquiry.
______________________________________________
FOOTNOTES
[13] Sawong, D. (2007) Ibid, p15
[14] Sometimes also referred to as Oscar Yamuna or Oscar Wandi Yamuna
[15] Sawong, D. (2007) Ibid, p224
[16] The date of his appointment is not known but his role was reported in September 2014: http://www.thenational.com.pg/nbc-in-strife/
[17] Sawong, D. (2007) Ibid, p224
[18] Evidence of Maurice Sullivan to the NPF Inquiry, Transcript of Proceedings of 14 December 2000
[19] Port Moresby First National Real Estate Limited Limited, Company Extract as of 3 November 2016, Investment Promotion Authority and, Notice of change of Shareholder, Investment Promotion Authority
[20] Barnet, T. (2002) Commission of Inquiry into the National Provident Fund, Serialised Extracts, p242
[21] Barnet, T. (2002) Commission of Inquiry into the National Provident Fund, Transcript of Proceedings into the NPF Inquiry of 1 February 2002, p31
[22] Barnet, T. (2002) Final Report, Ibid, p41

When failure is success – The tale of four real-estate sell-offs

Presented below are four major real-estate property sales, conducted by the ICPNG at the behest of Wandi Yamuna. Each example contains a common pattern. Yamuna, against advice, executes transactions which are to the detriment of the ICPNG, but are largely to the financial betterment of intermediaries and purchasers. O’Neill’s alleged firm, PMFNRE, was argued to have been a central player.
  1. Cascade Apartments
Property: Cascade apartments (10 three bedroom apartments), owned by ICPNG subsidiary Cascade Apartments Limited.[23]
Vendor: ICPNG
Purchaser: Lease Rite Limited, a company owned by Southern Highlands businessman Johnson Tia.
Sales agent: PMFNRE, awarded a 2% Commission, K37,080.
Legal agent: Mai Lawyers
Sale Price: K1.8 million
Date of sale: September 1998
Irregularities cited by COI:
  • No board approval was given to dispose of shares in Cascade Apartments Limited to Lease Rite Limited.
  • ICPNG Managing Director, Wandi Yamuna, rejected the advice of ICPNG’s investment analyst to seek a fresh valuation of the property. Instead, he allegedly insisted on using an old June 1996 valuation (K1.82 million), stating ‘not to drag [the deal] on and [instead] proceed with sale of the properties’.[24]The Commission noted rising property prices in Port Moresby meant a ‘fresh valuation … [was] necessary’.
  • In May 1998, PMFNRE is appointed sole agent for the sale, without a proper tender process.
  • After Cascade Apartments is publicly tendered, the highest bidder, Australian concern Baltimore Pty Limited, inexplicably withdraws its original offer of K2 million, reducing it to K1.4 million.
  • The property is then awarded to the second highest bidder, Johnson Tia, for K1.8 million.[25]
  • Johnson Tia resold the undervalued property two years later for K2.5 million, returning a 39% profit.[26]
  • Yamuna signed ‘a deed of indemnity between the Corporation and Mr Tia which indemnified Mr Tia for a period of one year after the completion of the contract of sale of shares against all liabilities and claims’,[27]without first assessing the liabilities of Cascade Apartments Limited, or obtaining formal ministerial approval from Iaro Lasaro.
  • Mai lawyers was contracted to provide legal services without tender. K93,850 in legal fees were paid. An extra K100,000 was ‘withheld for completion costs’. The Commission recommended that IPBC investigate this.
  • According to the NPF Commission of Inquiry and IPA documentation, Johnson Tia enjoyed direct commercial ties with, Jack Awela, Peter O’Neill’s alleged uncle and proxy shareholder in PMFNRE. This tie was established on 9 December 1998, when Johnson Tia acquired a one-third stake in Chelsea Limited, from Jimmy Maladina. On the same day, Jack Awela acquired a one-third stake in the company, along with current opposition leader Sam Basil. All three shareholders were appointed directors. Later in June 2000, Wandi Yamuna joined the board after losing his post at ICPNG.
  • It is alleged by the NPF Commission of Inquiry that Chelsea Limited was used to potentially launder K322,200 from the NPF frauds. According to the Commission the sum eventually ended up in the personal bank account of Sam Basil, who transferred K109,631 to PMFNRE. [28] 
Network Map: The Cascade Apartments sale
2. ANG Haus
Property: ANG Haus, a 12 story office block.
Vendor: ICPNG
Purchaser: Cascade Apartments Limited, ultimately owned by Johnson Tia.
Sales Agent: PMFNRE, awarded a 2% Commission, K68,640.
Legal Agent: Mai Lawyers
Sale Price: K3.2 million
Date of Sale: December 1998
Irregularities cited by COI:
  • Ministerial approval for the sale was not obtained [29]
  • Wandi Yamuna faced opposition over the sale from ICPNG management. ANG Haus was used by ICPNG for office accommodation. As a result, moving location posed a ‘high risk of getting locked out from rented premises for non-payment of rentals thereby disturbing the shareholders’.[30] The disposal of ANG Haus would thus have ‘serious financial ramifications’.[31] Yamuna evidently ignored this advice.
  • PMFNRE advised Wandi Yamuna that a businessman, Johnson Tia, was ready to bid K3 million for the property, outside the formal tender process. ICPNG’s Deputy Managing Director strongly advised Yamuna against the sale, suggesting a minimum sale price of between K4,3777,000 (1996 valuation) and K5.4M. Similarly, the ICPNG board resolved ‘to sell the ANG Haus at a price no less than market value.’[32]
  • The property was finally sold to Cascade Apartments Limited, a concern ultimately owned by Johnson Tia [see above re Cascade Apartments sale], for the price of K3.2 million (a reduction from K3.3 to K3.2 was made by Yamuna, for repair and maintenance work).
  • In addition to its K68,640 Commission, PMFNRE is alleged to have improperly retained an extra K47,840 from the sale.[33]
  • Mai Lawyers are appointed to complete the legal work, without tender. They charge K70,148 in legal fees. An additional K100,000 is kept, evidently without account.
  • The Commission concluded that ‘unless evidence to the contrary is provided, it would also appear that Cascade Apartments and PMFNRE’s actions would amount to theft of the funds of the Corporation’.
Network Map: The ANG Haus sale
3. Manamatana apartments
Property: Manamatana apartments, seven stories, 24 apartments.
Vendor: Investment Corporation Fund (managed by ICPNG)
Purchaser: Bluehaven No. 42
Sales Agent: PMFNRE, awarded a 3.5% Commission, K77,000.
Legal Agent: Unspecified
Sale Price: K2 million
Date of Sale: Contract of sale June 1999, completion May 2000.
Irregularities cited by COI:
  • Wandi Yamuna, it is alleged, unilaterally increased the proposed sales Commission from 2% to 3.5%, which would be awarded to PMFNRE, for the sale of Manamatana apartments. The Commission of Inquiry observes: ‘Mr Yamuna stated that the current rate of Commission of 2% was too low and an increase of 1.5% was proper and fair. There are no records to indicate that PMFNRE had requested an increase’.[35] The Commission found the increase contrary to the fund’s interests.
  • In December 1998 an evaluation priced the apartments at K2,245,000. Yamuna was told by ICPNG’s property manager that ‘the Corporation had informed PMFNRE to use the valuations as the reserve prices for the sale of the Fund’s properties’.[36]
  • In February 1999, Yamuna informs Ken Barker from PMFNRE that the bids made for the property were below the reserve price. Bluehaven No. 42 Limited, nonetheless, managed to acquire the property. The Commission found this occurred outside a competitive tender process and without board approval.
  • To obtain ministerial approval for the sale, from both Fabian Pok (the Minister responsible) and Iaro Lasaro (the Minister for Treasury), Yamuna ‘failed to furnish relevant and appropriate information’.[37] Furthermore, both ministers failed to seek a ‘detailed and relevant submission’, while the Commercial Investments Division of the Department of Treasury provided no assessment.[38]
  • Bluehaven No. 42 Limited paid K2 million for the property. This was K245,000 below the market valuation.
  • Bluehaven No. 42 Limited’s two shareholders were Margaret Henao Aria and Eunice Dauge.
  • The NPF Commission found that on the 23rd of June 1999, a document was signed by Margaret Henao Aria and Eunice Dauge, wherein they agreed to hold the shares in Bluehaven on trust for Peter O’Neill.
  • According to Peter O’Neill ‘Blue Haven 42 Limited was a shelf company bought solely for the purposes of purchasing Manamatana Apartments. The purchase of shelf company was arranged by our solicitor, Mr Greg Lay of Young & Williams. He was communicating with Mr Sullivan who had the carriage of the file to sort out the transfer of shares to his own company and to myself. I requested Mr Lay to hold my shares in Trust while I was sorting out the setting up of a family holding company, LBJ Investments Limited. It was for that reason alone that I signed the trust arrangements to protect Mr Lay or his staff’.[39]
  • Aria and Dauge transferred their shares in Bluehaven on 8 March 2000 to LBJ Investments. Peter O’Neill had noted in an earlier hearing that ‘LBJ is a company formed in late 2000[40] to hold a number of investments on behalf of my children Loris, Brian and Jo-Anne. Mr Gregory James Lay formerly of Young & Williams now Norton White Lawyers incorporated the company and held its shares in trust for my children.’[41]
  • It appears from the Commission of Inquiry findings, that Peter O’Neill was the beneficial owner of the sale agent, while the company purchasing Manamatana was an O’Neill family trust.
  • PMFNRE received a commission of K77,000 as sales agent. The responsible salesperson at PMFNRE was Iaraga Asi, the wife of the responsible Minister, Fabian Pok. O’Neill also claims that his own wife worked on the sale, and won a commission of K40,000,[42] (although the Commission has questioned the credibility of this claim, given O’Neill himself has also stated Lynda Babao did not start work for PMFNRE until six months after the sale was concluded at contract stage, and her name is not mentioned in any of the sale documentation[43]).
  • The NPF Commission alleged the Manamatana acquisition was used to launder funds from the NPF frauds and directed Mr. O’Neill be referred to the police ‘to investigate whether he should be charged with perjury concerning his evidence on this issue’. [44]
Network map: Manamatana apartments sale
4. Investmen Haus
Property: Investmen Haus, nine story office building.
Vendor: ICPNG
Purchaser: Nusaum Holdings Limited
Sale Agent: PMFNRE, awarded a 2% Commission, K134,930
Legal Agent: Carter Newell (firm part owned by Jimmy Maladina)
Sale Price: K6,550,000
Date of Sale: 24 July 1998
Irregularities cited by COI:
  • Owing to its strong investment yield, ICPNG management recommend keeping Investmen Haus. The sale, it was claimed, ‘would result in cash deficiency of K125,000 per month’.[45] This advice, again, was rejected by Wandi Yamuna.
  • A 1996 valuation priced the asset at K5,802,000.[46]Wandi Yamuna was advised to seek a new evaluation. This did not occur. Ministerial approval for the sale was also deemed deficient by the Commission.
  • PMFNRE was hired as sole agent for the sale in May 1998, with a 2% Commission. In total K134,930 was paid to PMFNRE.
  • In contrast to the other cases, where evidence was presented by the Commissions of Inquiry suggesting collusion between vendor and purchaser, in this instance there is no allegation that the purchaser enjoyed links to ICPNG or its agents.
  • The board refused undervalued bids and asked the successful bidder to increase their offer to at least K6.5M. It is complied with by Nusaum Holdings Limited from the Monian Group of companies, which won the contract for K6,550,000.[47]
  • Carter Newell advised the corporation that their legal fees would not exceed K50,000. The Commission cautioned the ICPNG, K755,000 was apparently retained by the law firm (including the 10% deposit of K655,000). Although the law firm’s records were summoned by the Commission, the files were not furnished.[48] 
Network Map: The Investmen Haus sale
VULTURE CAPITALISM?
Each of these cases, as documented by the Commission, contain a running theme. ICPNG’s Managing Director is said to have sold financial assets belonging to the state enterprise, against advice, using improper means. The majority of these sales, were below value. Given that, by definition, the ICPNG was not benefiting from flawed commercial decisions, the primary beneficiary of these transactions, as evidenced in the Commission report, was the sales and legal agents, along with the purchaser, in those cases where the sale was under-value.
The findings of the Commissions of Inquiry, indicate that PMFNRE was a key beneficiary of these illicit transactions, as sales agent, while its alleged principal Peter O’Neill, also benefited through his involvement in Bluehaven No. 42 Limited, which acquired the Manamatana apartments.
The Commissions did not speculate on the motivation standing behind these illicit transactions. However, in oral evidence submitted to the NPF Commission by former Managing Director of ICPNG, John Ruimb, it is alleged that Fabian Pok and Peter O’Neill intended to use the illicit proceeds for a slush fund, which would help to stabilise Skate’s turbulent governing coalition.  Recalling a meeting convened with O’Neill and Pok in late 1997, Ruimb states:
[These] further conversations were a follow up on various other project that Peter O’Neill had made to me suggesting that all the Investment Corporation properties be given to Port Moresby First, sorry, it was Hunter Real Estate at that time to manage the properties. And in that meeting, in the presence of Dr Pok he talked about the need for them to make more money enough to sustain the members they had in Parliament to remain in government. And that if I did not cooperate they would determine my future.[49]
The Commission took ‘judicial notice’ that perhaps some funds raised in the alleged frauds were intended for ‘political purposes’ but said it lacked the evidence to make such a finding.[50]
However, in the NPF Commission of Inquiry, close scrutiny was given to the destination of the proceeds alleged to have been acquired through fraud. It was claimed in this case, to which we will now turn, that Peter O’Neill and his alleged co-conspirator Jimmy Maladina, were among the primary beneficiaries of two major illicit transactions.
_________________________________________
FOOTNOTES
[23] Sawong, D. (2007), Ibid, p82
[24] Sawong, D. (2007), Ibid, p83
[25] Sawong, D. (2007), Ibid, p84-87
[26] Sawong, D. (2007), Ibid, pp 87
[27] Sawong, D. (2007), Ibid, p85
[28] Barnet, T. (2001), Commission of Inquiry into the National Provident Fund, Transcript of Proceedings into the NPF Inquiry of 8 November 2001, pp14-17
[29] Sawong, D. (2007), Ibid, p96
[30] Sawong, D. (2007), Ibid, p93
[31] Sawong, D. (2007), Ibid, p92
[32] Sawong, D. (2007), Ibid, p92
[33] Sawong, D. (2007), Ibid, p95
[34] Sawong, D. (2007), Ibid, p96
[35] Sawong, D. (2007), Ibid, p98
[36] Sawong, D. (2007), Ibid, p98
[37] Sawong, D. (2007), Ibid, p99
[38] Sawong, D. (2007), Ibid, p99
[39] Barnet, T. (2001), Commission of Inquiry into the National Provident Fund, Transcript of Proceedings into the NPF Inquiry of 27 November 2001, p31
[40] Investment Promotion Authority records indicate the company was actually formed in November 1999.
[41] Barnet, T. (2001), Commission of Inquiry into the National Provident Fund, Transcript of Proceedings into the NPF Inquiry of 10 May 2001, point 41 of O’Neill’s defence, p24
[42] Barnet, T. (2001), Commission of Inquiry into the National Provident Fund, Transcript of Proceedings into the NPF Inquiry of 29 November 2001, pp33-35.  
[43] Barnet, T. (2001), Commission of Inquiry into the National Provident Fund, Transcript of Proceedings into the NPF Inquiry of 4 February 2002, p12
[44] Barnet, T. (2001) Serialised Extracts, Ibid, p224 and p237
[45] Sawong, D. (2007) Ibid, p89
[46] Sawong, D. (2007) Ibid, p88
[47] Sawong, D. (2007) Ibid, p90
[48] Sawong, D. (2007) Ibid, p90
[49] Barnet, T. (2001) Commission of Inquiry into the National Provident Fund, Transcript of Proceedings into the NPF Inquiry of 31 January 2001, pdf p22-23
[50] Barnet, T. (2002) Final Report, Ibid, p42

The ‘NPF tower fraud’ - Dining out on PNG’s retirement savings?

Network Map: The ‘NPF tower fraud’
The NPF, it will be recalled, was a compulsory pension fund for all private sector companies with over 20 employees. By the late 1990s it had entered a dangerous debt spiral, which was married to a high risk speculative investment culture.
Its investment portfolio, for example, changed ‘alarmingly’. In 1994, only 8% of NPF’s assets were invested in high-risk investments. By 1998 it has reached 60%. Most of the investments were poorly executed, which resulted in colossal losses of K153 million in 1998 and 1999.[51]
In the same period the debt as a percentage of net assets rose from 5% to 70%. The NPF Commission of Inquiry claimed that Herman Leahy, the fund’s corporate secretary and legal counsel, had given his employer ‘totally wrong advice that it was within NPF’s powers to borrow’.[52]Furthermore, no consideration was evidently given to the possibility that interest rates on the loans could rise.
The Commission also alleged that the banks were complicit in the NPF’s debt crisis. In August 1998 and May 1999 respectively, PNGBC and ANZ were advised by law firms that the NPF lacked the legal power to borrow. ANZ, it is alleged, took care ‘not to alert’ NPF and instead organised an exit strategy.[53]PNGBC – under O’Neill’s leadership – also failed to share this legal advice with the NPF Board, and instead continued to lend to the fund, the Commission claimed. The Commission noted this potentially exposed the state banking institution to a class action from NPF members.[54]
The resulting debt spiral accrued by NPF’s management was alleged to have been concealed from the NPF Board: ‘Not only did NPF management not keep the board informed about the continued use and increasing size of the overdraft facility but it adopted wrong accounting methods which concealed the existence of it’.[55]
It was against this backdrop that the ‘NPF tower fraud’ evidently took place. In 1997 the NPF debt financed the construction of Deloitte Tower, in the heart of Port Moresby’s CBD. The credit was obtained through a 1997 PNGBC K50 million loan, which was later increased to K59 million in 1999.[56]
Japanese firm, Kumagai Gumi, was contracted to build the tower. Owing to currency fluctuations, which devalued the contract price, Kumagai made two devaluation claims. The first request, approved in 1998, the Commission concluded was justified. This brought the contract to K47 million.[57]
A second request was made by Kumagai to increase the contract price to K51.3 million in January 1999. NPF’s counsel, Herman Leahy, is alleged to have concealed the proposed sum from the board, in a conspiracy with Jimmy Maladina. According to the Commission, Pacific Architects Consortium – the project architects – and NPF advisers, were removed from negotiations by Leahy.[58] An overinflated claim was then agreed with Kumagai, wherein the contract would be repriced at K54 million,  K2.7M ‘more than what Kumagai had requested as full payment.’[59]
According to the Commission:
The result was that an extra K2.5 million of NPF’s funds was paid to Kumagai. This had previously been agreed by Kumagai management at the insistence of Mr Maladina just prior to his appointment to the NPF Board of Trustees. He had threatened to deny Kumagai the currency depreciation payment (after his expected appointment) unless they co­operated. The agreement between Mr Maladina and Mr Leahy with Kumagai managers was that Kumagai would return the extra K2.5 million of NPF funds to Mr Maladina plus an extra K150,000 of Kumagai’s own money as Mr Maladina’s personal “Commission”. An elaborate scheme was put in place, including the fabrication of false documents, so that Kumagai’s return payments to Mr Maladina could be laundered through the personal account of Ken Yapane and the account of his company Ken Yapane and Associates.[60]
Attempts were made by the Commission to document the money trail, in order to determine who benefited from the alleged fraud. It is claimed that the illicit proceeds were laundered through the accounts of:
  • PMFNRE, a real-estate company said to be owned by Peter O’Neill.
  • The law firm Carter Newell; and
  • Ken Yapane.
In the following diagram, data presented by the Commission, and National Court, has been used to map six tranches of money alleged to have been laundered from the tower fraud.
Network Map: The alleged money trail
There are a number of noteworthy transactions contained within this graph:
  • Part of the first and sixth payments, which transited through Yapane and Carter Newell’s accounts, appears to have been used for the acquisition of A$515,000 in Australian real-estate during June 1999, through the company Bethgold Pty Ltd.[61]
  • It is alleged by the Commission that the shares in Bethgold Pty Ltd were held on trust by PMFNRE’s Kenneth Barker and Maurice Sullivan for Jimmy Maladina and/or Peter O’Neill.[62]When questioned by the Commission Sullivan acknowledged ‘I did not provide any funds out of my pocket’.[63] Nevertheless, Sullivan claimed he was under the ‘impression’ of owning the firm. Sullivan stated, ‘I was under the impression that this was to be a superannuation type of arrangement for Ken Barker and myself’.
  • Part of the second alleged fraudulent payment said to be laundered through the accounts of Ken Yapane and PMFNRE (K150,000 out of K652,421), was evidently used for the Manamatama property acquisition by Bluehaven No. 42, a company which appears to have been beneficially owned by the O’Neill family (see above).
  • The Commission of Inquiry also claimed that three portions of the illicit proceeds (K100,000, K112,768, and K566,832) ended up in the general accounts of Carter Newell Lawyers, a firm then controlled by David Lightfoot, Kelly Naru, John Donald Beattie and Bernard Avery, practising with Jimmy Maladina.[64]Australian national, John Donald Beattie, remains one of Peter O’Neill’s closest business associates,[65] while Kelly Naru, a former Chairman of the Defence Force Retirement Benefit Fund,[66]is the current governor for Morobe.[67]
  • The third payment of K595,453, after passing through the accounts of Carter Newell and PMFNRE, was allegedly paid in part to Mecca No. 36, a company owned by Peter O’Neill and Nathaniel Poya. The latter was then an NPF trustee.
_____________________________________
FOOTNOTES
[51] Barnett, T. (2002) Final Report, Ibid, p3 and p4 and Serialised Extracts, Ibid, p61
[52] Barnett, T. (2002) Final Report, Ibid, p35
[53] Barnett, T. (2002) Serialised Extracts, Ibid, p104
[54] Barnett, T. (2002) Serialised Extracts, Ibid, p76
[55] Barnett, T. (2002) Serialised Extracts, Ibid, p75.
[56] Barnett, T. (2002) Final Report, Ibid, p35
[57] Barnett, T. (2002) Serialised Extracts, Ibid, p81
[58] Barnett, T. (2002) Serialised Extracts, Ibid, p22, p33 and p202
[59] Barnett, T. (2002) Serialised Extracts, Ibid, p202
[60] Barnett, T. (2002) Serialised Extracts, Ibid, p22
[61] Barnet, T. (2001) Commission of Inquiry into the National Provident Fund, Transcript of Proceedings into the NPF Inquiry of 23 February 2001, pdf p53
[62] Barnett, T. (2002) Serialised Extract, Ibid, p216
[63] Barnet, T. (2001) Commission of Inquiry into the National Provident Fund, Transcript of Proceedings into the NPF Inquiry of 14 December 2000, page 60
[64] National Provident Fund Board of Trustees -v- Jimmy Madina and others, OS. No.83 of 2001, Pacific Islands Legal Information Institute website, accessed on 21 June 2017
[65] See The Midas Touch Part 1 
[66] Barnett, T. (2002) Final Report, Ibid, p42.
[67] National of Parliament of Papua New Guinea, Hon Kasiga Kelly Naru profile, accessed on March 27 2000 

The one that got away – The failed sell-off of Deloitte Tower

Following the alleged Kumagai fraud, the NPF Commission argued, Jimmy Maladina and Herman Leahy conspired to sell a 50% stake in Deloitte Tower, through holding vehicle The Tower Pty Ltd. The purchaser was another state-owned entity, PNG Harbours Board. An engorged Commission of 5% would then be paid to PMFNRE, without the NPF Board’s knowledge.[68]
Jimmy Maladina, it is alleged, conspired with professional valuators to organise overinflated valuations. The contracted valuators, the Commission argues, charged ‘exorbitant’ fees[69] for these services, half of which was paid directly to Jimmy Maladina. In this instance – the tower valuation – it is alleged Maladina received a kickback of K175,000.[70]One of the valuers, Iori Veraga was sentenced to six years hard labour by the National Court in 2005 for his role in the scheme.[71]The other alleged perpetrators appear to have escaped criminal prosecution.
Fortunately for NPF stakeholders, the plan failed. Political pressure was allegedly placed on PNG Harbours Board to proceed with the sale by three Ministers, Iaro Lasaro, Fabian Pok and Vincent Auali – each wrote identical letters in favour of the deal. Legal threats were also issued by NPF’s legal counsel Herman Leahy. Nevertheless, the Commission observed that the PNG Harbour Board’s Managing Director and Legal Officer, were ‘men of integrity who realised it would be against the best interest of PNGHB’.
As a result, ‘this brought to a close Mr Maladina’s fraudulent scam to obtain the K2 million Commission through Mr Sullivan of PMFNRE’, which would have been subsequently ‘laundered through the accounts of PMFNRE and Carter Newell lawyers and then divided between the conspirators and Mr Peter O’Neill’.[72]
Network Map: The failed sale of Deloitte Tower
____________________________________________
FOOTNOTES
[68] Barnett, T. (2002)Serialised Extracts, Ibid, p83
[69] Barnett, T. (2002) Final Report, Ibid, p80
[70] Barnett, T. (2002) Serialised Extracts, Ibid, p192
[71] State v Veraga [2005] PGLawRp 13; [2005] PNGLR 607 (17 June 2005) accessed on March 27 2017 at http://www.paclii.org/cgi-bin/sinodisp/pg/cases/PGLawRp/2005/13.html
State v Veraga [2005] PGNC 103; N2849 (2 June 2005)accessed on March 27 2017 at http://www.paclii.org/cgi-bin/sinodisp/pg/cases/PGNC/2005/103.html
[72] Barnett, T. (2002) Serialised Extracts, Ibid, p83 and p84

Inside the Waigani land deal

A second major property transaction scrutinised by the NPF Commission of Inquiry centred on land in Waigani. According to the Commission, Jimmy Maladina, conspired with others, to acquire the land at a reduced rate using bribery. They then planned to resell the plot to the NPF.
At the centre of this alleged scam was the company, Waim No.92 Limited. The Commission alleged that the company was beneficially owned by Jimmy Maladina. Proxy shareholders Philip Eludeme and Philip Mamando – the latter of whom was residing at Maladina’s property – were said to have been used by Maladina to conceal his involvement.[73]
To secure the state lease under favourable conditions, Jimmy Maladina is accused by Tos Barnett of bribing the Land Board Chairman, John Guise, and the Lands Minister Visiso Seravo.  The Commission observed that Guise retrospectively varied conditions set out in the Letter of Grant, and signed false minutes stating that the Land Board recommended a reduction in the purchase price and annual rent. As a result, Waim No.92 Limited acquired a state lease for K1,724,726, with annual rent set at K17,000. The Commission of Inquiry suggested the correct sale price should have been K2,866,000, while annual rent should have been set at K143,000.
The Commission further claimed that ‘trust statements were fabricated’ on a Carter Newell file, in order to ‘make it appear that the money [for the sale] came from Mr Eludeme’s funds’, which if true is an offence under section 122 of the Criminal Code Act.
Once the State lease had been allocated, it was alleged by the Commission that Jimmy Maladina and NPF’s Company Secretary, Herman Leahy, ‘entered into a criminal conspiracy’ with the valuers Iori Veraga and Mariano Lakae. Through this conspiracy, grossly inflated valuations of the Waigani land were issued by the valuers –  K14.7 million and K17.6 million[74]– who accrued excessive fees.[75] In this instance, the Commission asserts, Maladina was provided with a K60,000 kickback by the valuers.[76]
Despite Maladina and Leahy’s efforts to persuade the NPF board to acquire a 100% stake in Waim No. 92, through the preparation ‘of false and misleading papers’, in this instance the NPF Board rejected the proposal during December 1998.
In the end, Maladina allegedly used Ketan lawyers, to sell the land on to Trinco No. 6 Pty Ltd, a subsidiary of the Malaysian giant Rimbunan Hijau, for ‘a drastically reduced price of K3.3 million’.[77] It is claimed by the Commission that the profits were disbursed by Simon Ketan lawyers, using the accounts of Carter Newell. The proceeds were credited to a file for Jimmy Maladina’s Hong Kong based company, Global Halshaw Consultants, and paid out ‘to the benefit of those who had assisted him in organising the Waigani land (or NPF tower valuation) fraud.’[78]
According to the Commission, the proceeds were distributed as follows:
  • K700,000 went to Ferragamo Limited, a company owned by Jimmy Maladina;
  • K50,000 was paid to Herman Leahy;
  • K20,000 was paid to Phillip Eludeme;
  • K20,000 was paid to Ram Business Consultants;
  • A further K3,000 was ‘said to be for Mickey Tamarua’,[79]an NPF board trustee
  • K220,015.20 went to Biga Holdings Limited, a company owned by Iaraga Asi, the wife of the Minister for Lands Fabian Pok
  • K15,000 was paid to Phillip Mamando;
  • K60,000 went to PMFNRE, which ‘appears’ to have been received by PMFNRE on behalf of Peter O’Neill;
  • K10,000 was paid to Jack Patterson;
  • K49,598.49 was paid to Viviso Seravo, the Lands Minister.
  • Another K100,000 was paid to an unknown recipient said to be for the ‘Lands Board claim’
Network Map: The Waigani land deal and its proceeds.
_______________________________________________
FOOTNOTES
[73] Barnett, T. (2002)Final Report, Ibid, p76
[74] Barnett, T. (2002) Serialised Extracts, Ibid, p189 and p190
[75] Barnett, T. (2002) Serialised Extracts, Ibid p189 and p190
[76] Barnett, T. (2002) Final Report, Ibid, p77
[77] Barnett, T. (2002) Serialised Extracts, Ibid p193
[78] Barnett, T. (2002) Serialised Extracts, Ibid p194
[79] Barnett, T. (2002) Serialised Extracts, Ibid, p195

A jewel in O’Neill’s crown

The direct links between Peter O’Neill’s businesses past and present, are not always easy to sketch, owing to convoluted and opaque money trails. However, in one instance, the NPF Commission of Inquiry traced the illicit proceeds to an asset, which is now among O’Neill’s most prized possessions.
In particular, the NPF Commission of Inquiry argued that the tower fraud proceeds were in part used to acquire the prestigious state enterprise, Resources & Investment Finance Limited (RIFL).[80] The company’s most recent annual return for 2015, shows more than K70M worth of assets.[81]
According to the Commission, back in 1999 RIFL was owned by the Papua New Guinea Banking Corporation (PNGBC). In June of that year it was transferred to Finance Pacific for little more than K2.2M. One of the signatory to the share transfer was Peter O’Neill, [82] who was both executive chairman of PNGBC and executive chairman of Finance Pacific.[83] It is alleged by the Commission that the rationale behind the transfer was to prepare RIFL for privatization, ‘RIFL was now ready for sale to a private buyer.’
The purchaser was Bluehaven No. 67 Limited. Although it appeared Bluehaven was purchasing on behalf of Pacific Helicopters, whose principal was Malcom Smith Kela, the Commission claimed that Peter O’Neill held ‘a substantial interest … in Bluehaven No. 67’ and ‘the other interested party was Jimmy Maladina’.[84]
Upon examining PMFNRE’s accounts, it is alleged by the Commission that much of the NPF tower fraud money was used for the acquisition.[85]The Commission explains what it concluded pushed the parties to acquire a state financial institution:
The “lure” which motivated the parties concerned to collect these funds together and purchase the shares in RIFL was that it was a cash rich company available for a very cheap price which could subsequently be stripped of its assets to repay the moneys contributed by Mr Smith Kela, Mr O’Neill and Mr Maladina who would then have acquired a licensed financial institution for virtually no cost.[86]
That financial institution, of course, has now become one of the most highly successful company’s in O’Neill’s stable. IPA records show that RIFL is presently majority owned by Peter O’Neill companies,[87] LBJ Investments Limited, Remington Technology Limited, and Paddy’s Hotels & Apartments Limited.
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FOOTNOTES
[80] Barnett, T. (2002) Serialised Extracts, Ibid, p233, 234, and 238 and Transcript of Proceedings for 1 November 2001, point 11, p5-7.
[81] Resources & Investment Finance Limited, Annual return 2015, Investment Promotion Authority
[82] Barnett, T. (2002) Serialised Extracts, Ibid, p233
[83] Barnett, T. (2002) Serialised Extracts, Ibid p237
[84] Barnett, T. (2002) Serialised Extracts, Ibid, p233
[85] Barnett, T. (2002) Serialised Extracts, Ibid, p234
[86] Barnett, T. (2002) Serialised Extracts, Ibid, p234
[87] Resources & Investment Finance Limited, Company Extract as of 19 October 2016, Investment Promotion Authority

The big skim - State power in service of private interests?

The Commission of Inquiry reports produced by Don Sawong and Tos Barnett are among the most difficult to locate in Papua New Guinea.
Many of the key protagonists condemned in their findings, now hold high office and significant business interests.
Peter O’Neill is chief among them. It appears O’Neill was parachuted into high seats of commercial power by his mentor, Prime Minister Bill Skate.
Then, working in league with his first cousin, and business partner, it claimed by the Commissions that Peter O’Neill helped fix and execute commercial transactions designed to defraud state agencies and statutory organisations of their financial assets.
Tos Barnett in the NPF report, argues that a portion of the illicit proceeds was used by O’Neill to invest in Port Moresby and Australian real-estate, along with prime corporate assets. An allegation was also aired during both hearings, that the proceeds were being used to prop up the Skate government.
Supporting the predatory network, it was argued, were a range of law firms and accountancy companies, that helped launder the money and conceal the ultimate beneficiaries, through convoluted transfers, forged documents and proxy shareholders.
If accurate, the findings of these Commissions indicate that senior corporate managers, have worked in league with businessmen, government officials, law firms and accountancy companies, to set up sham sales contracts, that are designed to deliver illegal commissions and windfalls to beneficiaries, preying on vulnerable assets.
All of this occurs though dozens of skims – agent fees, withheld assets, deflated/inflated sale amounts – which then add up to sizable sums.
And there are important lessons which can be learnt from the Commissions’ findings, if we accept their veracity. The PNG national economy and state power, is, like in most countries, closely interlinked. The national government has the power to:
  • Engage in industrial, commercial and financial activity, through state enterprises, statutory bodies, and investments in private enterprise.
  • Purchase a significant range of high-value goods and services, through a system of public procurement.
  • Mediate access to national economic assets, including land, forestry, mineral, oil, gas and fishing resources.
  • Issue valuable licenses and certifications to private enterprises.
  • Regulate market and non-market activity, through laws, regulations and public administration.
Where politically connected networks can abuse this public power to rig markets and commercial transactions, a lucrative opportunity structure is generated to illicitly skim wealth. If done frenetically and with impunity, this can buttress political and economic power.
Of course, it ought to be remembered that Peter O’Neill would reject the findings of Tos Barnett and Don Sawong.
It will be up to readers of the reports to decide whether they are great works of fiction, or great works of fact.
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Rival Ialibu Pangia candidates accuse O’Neill of ‘rigging’ PNG general election

June 30, 2017, 5:27 pm
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byPETER S. KINJAP 

Candidates contesting Papua New Guinea’s Ialibu/Pangia Open Electorate in the Southern Highlands province have accused Prime Minister Peter O’Neill of “rigging” the country’s national elections.

“Today confirmed everyone’s worst fears – these elections were deliberately rigged from the start,” said Stanley Liria, one of the candidates who signed a formal protest letter with election manager David Wakias before polling began in the electorate.

The open electorate is where Prime Minister O’Neill is the incumbent MP.

The rival candidates claimed in their letter the electorate was not ready for polling today.

The candidates are Jerry Kiwai, Nepoleon Rema, Tua Yasa, Stanley Liria, Justus Rapula, Leonard Pangepea and Dr Sam Kari.

At a meeting at Ialibu District Office, they unanimously agreed that certain issues be “properly addressed” before polling started.

Their letter was registered with the manager Wakias.

‘Treating people like dirt’
Candidate Liria said people were fed up with corruption, dictatorship, lying, stealing, and “treating people like dirt”.

He said the people of Ialibu-Pangia were peaceful and hard working, and had the right to choose their new leader through a “fair, transparent and honest” process.

“O’Neill is denying you this constitutional, democratic right,” Liria said.

All candidates, apart from O’Neill, had “through blood, sweat and tears” visited the entire electorate on foot and seen the “disastrous lack of services and conditions” people had to endure, Liria said.

Claiming that polling day had confirmed fears that the elections had been rigged, Liria added on his Facebook page:

These issues represented grave concerns for the integrity of the Ialibu-Pangia elections, and so the contesting candidates had served notice with manager Wakias.

“We have been robbed, and not only Ialibu-Pangia but all of PNG will suffer like never before.”

Stanley Liria is a Lawyer by profession and a close associate of Peter O'Neill. However, both men decided to take different routes when it comes to elections.

When Stanley wants to nominate as a candidate in June, there was a minor mishap whereby he almost miss out on the closing day with other candidates.

 PNG Media reports that the electoral office in the Pangia district have been closed soon after Peter O'Neill nominated himself. The rest of the candidates have to come all the way to Ialibu District to nominate on Friday which was the last day or else they would have missed out to contest.

This, some claim was deliberate but who knows. The Electoral Officers may have some other business to do on the day.

With a convoy of about 60 plus vehicles and multitude of supporters marching to Ialibu Station, Liria finally nominated with other candidates.

He could not pay his nomination at Pangia Station because of the forced closure of the nomination office for a week.

This incident raises eyebrow of candidates and voters but was finally put to rest. 

There are many reports of cases about polling errors occurring everywhere in PNG and Pangia Ialibu could be of the districts to address electoral roll issues before going to the polls.

 But what is most striking is the strong revivalism between Stanley Liria and Peter O'Neill getting momentum each day supporters. The two men were once good friends and perhaps still good buddies but decided to travel on different direction on political matters; something which in PNG not so often. Politics relatively is connected to every walk to life be familial, tribal, business and so forth.

Like many districts in the country have petitioned the EC office, let be the Ialibu Pangia candidates and the result be out and polling commences.
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DO NOT SEND LUCIFERIAN O’STEAL BACK TO PARLIAMENT

June 30, 2017, 6:31 pm
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by Taunamo Badira,
The people of Ialibu Pangia Electorate will deliberately choose to be deaf dumb and blind. They will deliberately choose to be the stupidest people in PNG, and in fact in the whole world. It is a level of fanatical stupidity no none has ever seen if they vote for Peter O'Neill.

Why is that so?
They will be going to the polls either today or next week to elect Peter ONeill once again to be their Leader and MP.
To them electing a leader is not about truth, honesty, uprightness, integrity, visionary, strength of character, compassion, etc. To them it is a matter of blind fanatical pride. Pride that one of their own has made it to the top office against every other leader in the country. To have him as Prime Minister, even though he broke the Constitution to steal that office from Somare, was a dream come true for them, albeit unexpectedly.
They are prepared to honour a thief of public office. They are prepared to honour a thief who amassed so much wealth using his public office. They are prepared to become the laughing stock of the whole of PNG, and the international community, by voting this man back into public office again.
Why? Is the question the rest of PNG watching would be asking today? Why would the intelligent people of Ialibu Pangia do that?
What is pride without substance?  Even in the Ialibu Pangia villages, a man who rapes another man’s daughter or mother wife is not patted on the back and told to go back and do it again. A man who steals another man’s  sugar cane is not rewarded with more of the garden to reap from. A man who steals another man’s pig is usually not let off scot free.
So what in the name of God is going on with the people from Ialibu Pangia?
This man Peter O’Neill is someone the whole nation of Papua New Guinea DO NOT WANT AS LEADER OR AS PM. He is a CURSE upon the nation.
The reasons are becoming all too clear from the most revealing analysis done by the publication in this blog by PNGi with diagrammatic illustrations and tables  revealing all the companies and wealth that has been amassed by Peter ONeill using public offices, and most as straight forward fraud and stealing.
What PNGi has published is just the tip of the iceberg, and it is hardly the full story. It is not a patch on the reality. The amount of K280 Million Nett worth estimated by PNGi of Oneill is totally unrealistic, when you take into account both Jimmy Maladina and Peter ONeills cash take on the UBS deal alone exceeded USD $300 Million ( See Dr Patrick Onguglo’s analysis on this blog on the UBS Loan transaction).

No one is perfect. Every human being have their good sides and their bad sides. But  Peter Oneill is infact a very evil man. His bad side totally outweighs any good that he may have or done for the nation or his electorate.
What has Peter ONeill done?
1.      Peter ONeill started by stealing from NPF thru Jimmy Maladina.  He escaped because his wife Cheryls sister was married to Hugo Berghausser , and hugo was very close to Warner Shand lawyers who were Counsel in the Commission of Inquiry, and thru Hugo Warner Shand got paid off. The Key witnesses in Maurice Sullivan and the other expat Manager of PNG First Real Estate were never compelled by the Inquiry to come back to PNG and give evidence that would have seen ONeill put behind the bars. The Inquiry simply passed over that minor detail. Peter ONeill has since learnt that money can buy anyone and anything in PNG.

2.      Peter ONeill used his position as PNGBC Chairman to give Johnson Tia a loan so that his Cousin Wandi Yamuna ( whom ONeill placed as MD of Investment Corporation) could sell ANG House to Johnson Tia to be owned 50/50 with ONeill. Johnson Tia agreed, took the loan, and refused to give 50% of shares to ONeill. You would never guess that the Sale price was less than K2 Million.

3.      In the Pratley ONeill days Peter ONeill was accountant to the Donalds who actually owned a company called Hunter Real Estate 100%. ONeill convinced them Real Estate was a 100 % reserved enterprise for locals under the old IPA rules and therefore  they needed him to hold 51% shares in trust for them. Well that was a mistake, for as the business grew to be a sizeable level from the Donalds pumping in their precious retirement fund, Neill one day just took Hunter real estate away lock stock an barrel. He just got his mate Mattio Rabura at Immigration Office to declare the Donalds persona non grata while they were on holidays on the Gold Coast. They could not return. He got a warrant of arrest waiting for them for he was the “51% owner “ who had been defrauded by this  old (trusting) English couple. What a story that is that can only be told by persons like Andrew Donald and Mel Donald of their parents nightmare with Peter ONeill at that time.

4.      From those early days he catapulted himself in business using every public office he held from PNGBC under Bill Skate to being Minister for Public Service. Most of his ill gotten gains in questionable deals were washed through his wholesale business in Goroka and his real estate company. In the Position as Public Service Minister, he set his mate Freddie ( Sir Frederic Reiher) up in a public servants housing project  worth over K40 Million. Less than K5 Million was accounted for, over K35 Million went missing, believed shared between Freddie and Petie. Not a single house was built.  Later when this became public knowledge, Petie and Freddie ran around making public promises to return the money. K35 million was never returned. They kept it. And look where Petie put Freddie now? Chairman of Air Niugini! What a joke!

5.      What about when Peter ONeill told William Duma ( the Chairman of PNG  Harbours Board) to put K4 Million as investment in RIFL ( Oneills finance company) just before the 2007 elections. Just on the elections, the money disappeared into the pockets of Duma Haiveta and ONeill to fund their campaigns. No one went and investigated and recovered the public moneys.

6.      I can fast forward and talk about all the fraud going on in the National Tenders Board which Jimmy Maladina and Peter ONeill have been orchestrating and controlling who takes what contract and what their cut is from almost every tender of K5 million upward. Before every tender is opened these two men already know who will get the tender. I am talking about the public procurement process has been absolutely compromised.  The massive kick backs every major construction and other industries are paying is mind boggling. They have facilitators and collectors both in PNG and overseas where they collect and park the cash. We have seen unprecedented levels of corruption never ever seen before in PNG under ONeill. He has insatiable appetite for cash like pouring water on an exploding volcanoe.

7.      The UBS loan was a classic example of greed over national interest. Peter ONeill is a smart guy who knew very well the nation had nothing to gain but was going to be plunged into a nightmarish debt crisis by this loan. Yet because of what was personally offered to him, and what he could gain in kickbacks both from Interoil and from OIlsearch, he put the nation’s neck on the chopping block. Peter ONeill sacked Don Polye and William Duma who were going to be stumbling blocks to his ultimate prize. PNG did not need to buy 10% shares in Oilsearch Limited. OSL is a public company listed in Australia. To get a loan and put the nations interests at risk to buy shares in a speculative industry subject to world commodity prices is stupidity of the highest calibre. In other countries, the public would call for an Inquiry and publicly hang such leader.  Someone in OIlsearch should do an ethical check and governance audit on that company and the conduct of its Board and CEO. Today PNG is bankrupt literally because of Peter ONeill. ( Once again read Dr Patrick Onguglo’s analysis on this blog on the UBS loan).

People of Ialibu Pangia need I go on and on about this one single man who has plunged this nation into debt crisis and make PNG bankrupt? There is more misdeeds to tell but to what gain and glory  than what has already been said.

The whole nation does not want ONeill to come back to Parliament or even become PM. He is a curse and an abomination upon this nation.

Pastor Charles Lapa where are you? Can you go and Counsel your son and sort him out? The nation of PNG don’t want Peter ONeill, the biggest thief ever to walk into Parliament.

Give us another Leader Ialibu Pangia. Surely you have not run out of decent men or women who respect this nation and its people and their property , and who believe that every one of us must advance and succeed. Surely there must be someone other than Peter ONeill who could lead the people of Ialibu Pangia out with pride that is borne out of substance?

Show  the rest of the nation people of Ialibu Pangia that you have not completely lost your marbles, that you still believe in honest upright and visionary leadership with integrity that knows how to share and care for this nation, and every child of this nation can be given hope for a brighter and better future.

But we humbly appeal to you never send Peter  Oneill back.  Dont send back Luciferian ONeill. This nation does not deserve him and he does not deserve this nation.
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KEEP THE TWO MASS MURDERERS: PETER ONEILL & JIMMY MALADINA OUT OF PARLIAMENT!

July 2, 2017, 3:54 pm
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by SAMSON  S. ALPHONSE
Have you ever wondered about what our children (or their children) down the line will look back at our generation of citizens of this beautiful country, and our generation of leaders, and say? What verdict do you think they will pass? Just ponder on that for a while.
After you have so pondered, also ask yourself what the children will think and say if we vote the current leaders back, or set up PNC Party to win and make Peter O’Neill the Prime Minister again?
The next generation, and generations thereafter will desecrate our graves, and those of our current Political Leaders, and that of Peter O’Neill definitely!

WHY would generations and generations of our future children do that you might ask?

1.      They would desecrate our graves because in the year 2017, we made another monumental mistake and as a nation voted PNC back into power.

2.      Because we did not learn from 7-year history of open stealing and corruption of public offices by Peter O’Neill and his Merry men. A good seven-year history of O’Neill Prime Ministership has enriched one man, Peter O’Neill, and impoverished the whole nation, bar Jimmy Maladina, the Constantinous and Cragnolinis.

3.      Because we did not learn from Peter O’Neill single handedly through the dubious UBS loan, bringing the Country’s Financial system down to a standstill. He fucked the economy up big time like no the Prime Minister ever did. O’Neill makes Billy Skate look like a saint. O’Neill personally benefited from that Loan deal to the tune of over USD$300 Million. The kickbacks were paid by both OilSearch and Interoil (independent of each other) through offshore third Parties. Jimmy Maladina was the middle man in that deal having spent several weeks in the US (New York and Asia (Singapore) stitching up the deal before the UBS team hit town.

4.      Because Peter O’Neill, single minded and singlehanded, smashed and mocked the Constitution, the Supreme Court, Parliament, the Police Force, the Ombudsman’s Office, the Public Prosecutors office, and just about every other public office with any constitutional independence, and walked away, laughing all the way to the bank.

5.      We have allowed Peter O’Neill to pretend to be Prime Minister but spends his days and nights scheming with his close knit buddies on how to churn the public coffers and make the nation’s public business, into his private profits.

6.      Because we have allowed Peter O’Neill to put and channel public government business through his own companies like Remington Group, Wild Cat, Global Construction, South West Air, Insurance Partners, Pacific International Hospital, Black Swan Security Company, L& A Brick Layers and L&A Group of Companies, etc. Most of these companies are substantially owned by Peter O’Neill through proxies. We all know in Port Moresby what Peter O’Neill owns. What we don’t know is a matter of time. Perhaps we will never know how much he has stashed away in offshore accounts.

7.      Because all the elected leaders in 2017 knew, and know that Peter O’Neill was a greedy selfish down right thief, using public office to muzzle them while he stole to his heart’s content, but they could not do anything about it. Why? Because they lacked the guts, integrity, principles, strength of character and leadership themselves, and given the same opportunity, they would have done the same themselves.

There are many more reasons why Peter O’Neill’s grave will be dug up and turned into a public toilet which we can go on and on about. But just for laughs, remember how he when he first jumped through the toilet window and assumed the Prime Ministership (illegally) he said he would sell the Falcon Jet for wasting public moneys. Well did he? Liar!

How about one drunken Airways night he worked on, brainwashed, instructed and challenged Belden Namah to go smash down the court House and drag the Chief Justice out and lock him up in prison. Then he immediately jumps on the Falcon and flew out to Honolulu on the Falcon Jet leaving Namah to execute the O’Neill plan and also take the blame for it. Cunning little bastard!

What about the Free Education Policy that is being funded by money meant for hospitals and medicine in hospitals? Well it’s okay to die for lack of medicine, as long as our children go to school? Heck it was reported recently even the Ialibu Hospital where the Prime Minister himself comes from does not have any medicine at all! The Free Education Policy is also a failure due to lack of funds.
The Public Hospital system and Public health care is a failure due to lack of funds. People are dying from curable deceases every day through no fault of their own.

Papua New Guineans need to realize that they have been marginalized and left behind while the rest of the region has marched on, ticked the boxes on the UN Millennium Goals with better Health care, better Education, better housing, better infrastructure, better food security, better business and job opportunities for their citizens, control of corruption and providing fair opportunities for equal distribution of a nation’s benefits for all people.

This marginalization has happened in the last 20 years especially.  The main cause of this has been due to poor leadership at political level. There has been no vision by any leader to drive this nation to be on par with our Asian neighbors.

PNG’s future is with its Asian neighbours and its neighbours are its role models. Heck, we are part of Asia, with half our Island speaking Bahasa and being part of one of the most progressive communities in the world.

Instead of driving this nation forward in terms of wise management of the national resources and creation of a fairer society through building up a strong educated middle class to create jobs and more opportunities for our people, through equal distribution of goods and services, we have built up a culture of corruption from the top down that is eating up this nation, leaving no hope and no future for our children.

The lack of medicine in the hospitals and the reason why many of our dear ones have died in the last 12 -18 months has been due to the greed of two men, Peter O’Neill and Jimmy Maladina.  These two men are murderers! Let me explain that bold claim.

They connived and singlehandedly pushed every public process (including sacking Ministers Polye and Duma) and kicked down every door in the house (including that of the Central Bank Governor) to approve and borrow USD$1.3 Billion from the Swiss UBS Bank largely to buy 10% highly speculative shares in OilSearch Limited.

The deal with Peter Botten of OilSearch was that OilSearch would use that money to buy Interoil Shares in ELK & Antelope, which they did. In the process these two men pledged for the loan the State’s income/share of profits from the Exxon LNG Project for its 19.5% that are now going to repay the UBS Loan, and not into schools and hospitals.

To make matters worse, the Oil & Gas prices have more than dropped hundredfold. The O’Neill/Polye Governments budgets predicated on then current Oil & gas prices before the UBS loan have been blown out of the water.

 So what’s the 10% interest that Peter O’Neill bought in OSL worth? I wouldn’t say Fuck ALL, but certainly not USD$1 Billion! In the meantime, there is no or very little dividend from OSL to alleviate our Free Education and lack of medicine woes.

Meanwhile Jimmy and Peter are enjoying their private Millions with their families laughing at the rest of the PNG Families who have to attend another Huascar because some other relative dies from lack of medicine, they and their families can jet off to Brisbane any day and obtain the best health care in Australia!

Peter made over USD$100 Million and Jimmy over USD$20 Million from the UBS Deal. They made more cuts from other service providers involved like legal services and Merchant Banking service providers who had to share commissions with the two.

So the question arises: Are Jimmy Maladina and Peter O’Neill mass a murderer?  Hell Yes!
The test is, if Peter and Jimmy didn’t commit PNG to the UBS Loan (for their selfish kickbacks) would the nation have afforded the stock of medicine our hospitals needed to save those lives, and a decent education for our children?  Yes, because we would not have had to pay well over K500 Million in UBS loan and interest repayments every quarter. That K500 Million per quarter would have saved a lot of lives by now.

I feel so sorry for our people who are dying in hospitals due to lack of medicine just because of the greed of two men.
PNG is at the Polls at this moment. I hope that the people of Ialibu Pangia and the people of Esa’Ala will think very carefully, not with their necks, but their hearts before they cast their votes. Think what the next generation of our children will think of you, if you vote these thieves and mass murderers back in?

I hope that for the sake of PNG, and for the sake of ourselves and our children’s future, men like Peter O’Neill and Jimmy Maladina never be given keys to the nations coffers again. It is like giving count Dracula the keys to the blood bank, and I can assure you, Peter and Jimmy are worse than Count Frankenstein of Transylvania. They do more than drink people’s blood. They have already drunk the nation dry.

If you want to prove me wrong, vote them in and see what destruction (for more personal gain) they can do.

If Peter O’Neill and Jimmy Maladina or anyone else feel that what I have said is not entirely correct or you have better information, or you beg to differ, I invite you to contribute and shed more light or even debate with me on this blog.
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Ialibu Pangia candidates to dispute ballot boxes

July 3, 2017, 5:12 pm
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byJustus Nambi Rapula
Some Candidates contesting Ialibu Pangia electorate in Southern Highlands will dispute ballot boxes coming from Kaure LLG and other parts of Ialibu and Pangia over issues of bribery and foul play.
A candidate contesting Ialibu Pangia Justus Rapula told FM100 news that all the candidates are standing together and have hard evidence to dispute ballot boxes coming from Kaure LLG and some other parts of the district.
Mr Rapula says they have evidence of K10, 000 paid to each council ward by incumbent MP Peter O’Neil's election coordinators and also Works Secretary who is from Kaure LLG, Kuwi council ward using his office to involve in bribery.
He says ITA ward was offered K10, 000 and four pigs before polling and it is a clear case of bribery.
Mr Rapula says Voters are also intimidated by the incumbent MP supporters and cases of our voter’s choice of candidates changed by polling officials.
He also adds that polling were also allowed to continue after 6pm with the involvement of underage voting which is totally not right.
Mr Rapula says conflict of interest of security forces were also evident where the incumbent MP has his choice of Police and Defence Units involved in the polling, without the respect of the legitimate Unit called out by Electoral Commission on the ground.
He says left over ballot papers from South Wiru, East Pangia and Ialibu Urban are being used in Kaure LLG while Kaure LLG ballot papers were nowhere to be found.
He adds that they have asked the Returning Officer to provide explanation on the whereabouts of the Kuare LLG ballot papers, but the RO has not provided a clear explanation on the mixup of the serial numbers for Kuare LLG.
He adds that they are now working to dispute ballot boxes to ensure our people's right to elect leaders is protected.
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PM GETS HANDS DIRTY BY REMOVING POLICE UNIT WHO WANTED TO STOP ELECTION FRAUD

July 3, 2017, 5:55 pm
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PNGBLOGS CONTRIBUTORS NETWORK

PETER O'NEILL personally intervened in the Election process yesterday in PANGIA after he called Police Commissioner GARY BAKI to personally remove a Mobile Police unit from Wabag. MS11 Unit from Wabag were stationed in Southern Highlands and in the Prime Minister's electorate of Ialibu Pangia for the election and were tasked in looking after ballot boxes for Pangia.

Members of Wabag's MS 11 had a confrontation with one of the Prime Minister's personal bodyguards after one of the polling officials for one of the LLGs in Pangia collaborated with the Prime Minister's bodyguards to remove scrutineers who were not supporting the Prime Minister.

The voters and scrutineers went on to report the matter to  MS Unit, when the MS 11 unit intervened the polling officials threatened one of the Policeman from the Engan unit by saying that they were not required because this was the PM's seat and their job was required elsewhere. Frustrated with the with the Prime Minister's relatives taking over the Electoral process The MS 11 unit than confronted the PMs Bodyguard who was seen taking control over the whole situation ensuring there was no objection to any illegal process under his nose.

Peter O'Neill's bodyguard could not stand being bossed around and made a call to the PM who then vented his frustration at the Police Commissioner demanding that this Police Unit be removed from Pangia and be placed elsewhere because they were seen as a torn on his plans to rig the election on his own favor. To the MS 11 Unit from Wabag, Enga Well Done in doing your job without fear or favour, to Police Commissioner GARY BAKI you are a disgrace to all who wear that uniform.
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White Snake John Pundari’s Manipulations of 2017 Electoral Process Revealed

July 5, 2017, 3:39 pm
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by Peter Balos
This is my third piece concerning corruption in Kompiam-Ambum Electorate. Unlike the two previous pieces, this piece principally reveals illegal and irregular deals done to manipulate the electoral process with the aim of winning this 2017 General Election by such fraud instead of true votes.
2. Creation of duplicate unpopular wards.
(a) Lakapos 2 ward.
Usually, Lakapos Ward is Ward 2 in the Ambum Rural. Lakapos has over 1200 eligible votes from Mulyao and Aiyele clans (Mulyao kungu) and its polling place is Rakapos.
To our surprise without proper consultation, a ward purportedly called Lakapos 2 was secretly created. Interestingly, it is not appearing on the common roll. Nevertheless, on the gazetted polling places, it appears. Its polling place is Hap. Hap is an isolated (not connected by road) bush village. It is not the ideal polling place. The ideal polling place is Lakapos where Aiyele, Kagatae and Takeo sub-clans used to cast votes. Mr. Pundari used to score base votes from Aiyele, Kagatae and Takeo sub-clans. Now these sub-clans in an historic move are abandoning him though very few people are after him. The reason for creating this unpopular ward/box is obvious.
(b) Silim Ward.
Silim Ward is Ward 1 in the Wali-Tarua Rural. There are about 430 eligible voters’ names on the common roll who hail from Yurin, Nene, Imu, Liyan and Waiben sub-clans of Yaupu clan. Its gazetted polling place is Silim.
The duplicate fake box created under Silim is in Kompiam Rural with 430 ghost voters from ghost clans. Common roll does not have corresponding information.
(c) Wapai Ward.
Wapai Ward is Ward 3 in the Wali-Tarua Rural. There are about 587 eligible voters’ names on the common roll who hail from Walep, Ipata, Kemyoko, Apaini and Mao sub-clans of Yokorin and Aeyele clans. Its gazetted polling place is Wapai.
The duplicate fake box created under Wapai is in Kompiam Rural with about 587 ghost voters from ghost clans. Common roll does not have corresponding information.
NOTE: Silim and Wapai boxes belong to Pumane-Aiyel tribe. Mr. Pundari used to collect base votes from these boxes let along the Yakan boxes. The reason for selecting Silim and Wapai boxes to name fake boxes is obvious.
(d) Kaimanda Ward.
Kaimanda Ward is Ward 6 in Wali-Taru a Rural. There are about 214 eligible voters’ names on the common roll who hail from Pipiyae, Lapame and Supame sub-clans of Wasen clan. Its gazetted polling place is Kaimanda. 
The duplicate fake box created under Kaimanda is in Kompiam Rural with nil ghost voters from ghost clans. Common roll does not have corresponding information.
(e) Kaimas Ward.
Kaimas Ward is Ward 9 in the Wali-Tarua Rural. There are about 383 eligible voters’ names on the common roll who hail from Papon and Lone Kopori sub-clans of Pipiae clan. Its gazetted polling place is Andamanda. 
The duplicate fake box created under Kaimas is in Kompiam Rural with nil ghost voters from ghost clans. Common roll does not have corresponding information.
NOTE: In 2007 General Election, Kaimanda and Kaimas boxes were hijacked and marked at Meraemanda in favor of Mr. Pundari. The Presiding Officers then were Mr. Panaphen Aoyane and Laki Kambu. Now, the same boxes were falsely duplicated. The reason for this is obvious.
3. Inflation of votes’ names in Aiametes ward.
Aiametes Ward is Ward 5 in the Ambum Rural. It is the home ward for Mr. Pundari. It used to have about 679 eligible voters. Now, there had been inflated by 536 bring the total to 1215. How can that be? 
4. Batch numbers puzzled.
The following batch numbers are allocated out of sequence. They have nil voters and they are:
0302-02013-oo1, 0303-0206-001, 0302-0213-001, 0302-0218-001, 0302-0227-001, 0302-0230-001, 0302-0327-001.
5. Undue delay in the publication of Presiding Officers’ names.
Unlike other Electorates, the list of Presiding Officers for Kompiam-Ambum is still yet to be published. Mr. Betto Pokale should publish it urgently.
6. Buying votes.
Buying votes is not unpopular to Kompiam-Ambum in the previous general elections. For this 2017 General Election, few members of certain clans within the Malipin and Yakan vicinity were given free money by Mr. Pundari has follows:
(a) Komban clan =K10 000.00
(b) Kee clan =K4 000.00
(c) Depau clan =K5 000.00
(d) Mulyau =K8 000.00 (K3 000.00 + K5 00000) 
(e) Aiyel =Proposed (I will obtain the details later).
The certain individual recipients are dissatisfied with the share they received. Others deliberately received what they termed “finish pay”. Both groups of recipients have provided details to Mr. Pundari’s detriment.
7. Conclusion.
They claim that they have overwhelming support and votes. Should that be true, then why buying votes and manipulating the electoral process? Is that the Christian way? Or is it legal? See if you can win in a most honest way. 
Mr. Betto Pokale in his capacity as the delegate of the Electoral Commission (Returning Officer) responsible for the Kompiam-Ambum 2017 General Election has to explain how the above fake boxes were created and other related electoral frauds highlighted above should he has any knowledge of the same.
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DUMA’S HIDDEN HAND IN K3 BILLION DEVELOPMENT

July 5, 2017, 4:27 pm
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Minister for State Enterprises, William Duma, was suspended from government in February this year, after it was alleged he had a beneficial interest in a lucrative land deal made with Kumul Consolidated Holdings.[1]
Peter O’Neill ordered an administrative inquiry into the affair, led by John Griffin QC.[2]
In a PNGi exclusive, we reveal the testimony of a senior Paga Hill Development Company (PHDC) executive, who claims the suspended Minister will potentially make a significant financial windfall from the proposed K3 billion luxury development at Paga Hill – which is said to include a 6-star hotel and potentially a casino.
The high level executive claims a confidential cooperation agreement was entered into with William Duma during June 2015, by PHDC. It will see land acquired by Duma at Paga Hill, form part of this major property development – known as the Paga Hill Estate – slated to host APEC 2018.[3]
PNGi will chart how William Duma came to obtain land at Paga Hill, and it would appear, a valuable interest in what has been dubbed one of the ‘country’s biggest public-private partnership projects’.[4]
FOOTNOTES
[1] Tlozek, E. (2017) ‘PNG ministers suspended amid inland naval base corruption scandal’, ABC News, 6 February, available online: www.abc.net.au/news/2017-02-06/papua-new-guinea-ministers-suspended-over-corruption-scandal/8245796 (accessed 1 July 2017)
[2] Nicholas, I. (2017) ‘Manumanu probe’, Post Courier, 8 March, available online: postcourier.com.pg/manumanu-probe/ (accessed 1 July 2017)
[3] While PHDC claims it will be a host-site for the forum, this fact has been disputed by the Minister for APEC, Justin Tkatchenko: see TVWAN News (2017) ‘Paga Hill Controversy’, 5 June 2017, available online: https://www.youtube.com/watch?v=KOvPFZKiEwc (Accessed 2 July 2017)
[4] (2017) ‘Kulang: Development biggest PPP project’, The National, 21 December, available online:www.thenational.com.pg/kulang-development-biggest-ppp-project/ (accessed 1 July 2017)

DUMA’S SLICE OF URBAN PARADISE

Image: Panaoramic harbour views, several minutes walk to Town, Paga Hill is a developer’s dream. 

The largely untouched land on Paga Hill’s south-west face was described in 2002 by the consultancy firm, Anvil Project Services, as ‘the best large single (land) parcel in PNG, if not the South Pacific’.[5]
With panoramic harbour views, just a stone’s throw away from Port Moresby’s Central Business District, it is easy to understand why.

Record 1: Land survey of Paga Hill, section 26, lots 16-20 highlighted, which is at the centre of the alleged PHDC agreement with Duma
The south-west slope is divided into two core plots. First, there is portion 1597. It was acquired by the Paga Hill Development Company in 2000, through a process which the Public Accounts Committee claims was marked by ‘corrupt dealings’.[6]
Adjacent to portion 1597 is five allotments – section 26, lots 16-20 – which according to a senior PHDC executive, William Duma owns through Kopana Investments Limited.
Kopana was incorporated in 1999. William Duma is its sole owner and director*.[7]
Up until October 2009, Kopana Investments Limited was an inactive shelf company.[8]It then entered the real-estate sector.
A search of National and Supreme Court decisions, reveals a 2012 case involving Kopana Investments Limited, and 5 allotments at Paga Hill centring on the 2009 period – although the case does not provide the allotment particulars.
Therefore, PNGi can not confirm that the 5 allotments at Paga Hill featuring in this Supreme Court case are the same 5 allotments at Paga Hill the subject of an alleged Cooperation Agreement with PHDC. But given the probability of this link, it is worth detailing the Supreme Court decision.
According to Justices Davani, Canning and Kariko,[9] Kopana Investments acquired state leases over 5 land portions at Paga Hill on 25 November 2009.
Reflecting on the transactions behind this acquisition by the then Minister for Petroleum and Energy, the judges observe, ‘there are serious issues as to fraud’ – although they were not asked to make a final determination on this matter.
The Supreme Court bench argued this after it was revealed during trial that the Lands Minister, Puka Temu, exempted the lots from public advertisement on 14 September 2009. Two weeks later, on 29 September 2009, the Land Board recommended that the 99 year state leases be awarded to Kopana Investments ‘a company owned and controlled by a person who appears to have been a ministerial colleague of the Minister in whose name these various decisions were made’.


Network Graph 1: Kopana Investments Limited acquires 5 x allotments at Paga Hill (Source: Investment Promotion Authority, Supreme Court of Papua New Guinea)
Following this acquisition, after having a mere K1 of assets in 2008, by 2009/10 Kopana recorded assets of K4 million. In 2011 this leapt to K28 million, with a modest K5.6 million in liabilities. The cause of this abrupt spike is unclear, but it is an exceptional achievement for a company with only 2 part-time employees.[10]


Table 1: Kopana Investments Limited’s Assets 2008-2012 (Source: Kopana Investments Limited Annual Returns for the years 2008, 2009, 2010, 2011, 2012).
Like many politicians, Duma appears blessed with the Midas Touch.
* Investment Promotion Authority records suggest Kopana Investments Limited has not submitted annual returns for 2014, and 2015, which if accurate, is an offence under the Companies Act 1997, with directors being liable for fines of up to K10,000 under section 414(2).
FOOTNOTES
[5] Anvil Project Services (2002), Information Memorandum: Paga Hill Estate, Port Moresby, Papua New Guinea, Waigani: Author.
[6] Public Accounts Committee. (2007). Public Accounts Committee Report to Parliament on the Inquiry into the Department of Lands and Physical Planning, Waigani: National Parliament of Papua New Guinea, p.60.
[7] Kopana Investments Limited, Company Extract, Investment Promotion Authority, accessed on 1 July 2017.
[8] Kopana Investments Limited, 2012 Annual Return, 28 June 2013.
[9] Noko No.96 Ltd v Temu [2012] PGSC 27; SC1192 (20 July 2012)
[10] Kopana Investments Limited, 2011 Annual Return, 29 June 2012.

STRIKING A DEAL WITH PHDC

According to Investment Promotion Authority records, Paga Hill Development Company (PHDC) is a local firm, legally owned by Stanley Liria, a lawyer from the Southern Highlands.[11]
However, the formal share registry cannot be relied on as an accurate statement of all beneficial interests in the Paga Hill Estate, which may be held through various private arrangements, such as a Trust agreement.

Screenshot: The Paga Hill Development Company Limited executive team (http://www.pagahillestate.com/team/).
In 2016, there was an unusual set of filings with the Investment Promotion Authority, relating to the Paga Hill property development.
A company Malaga No.7 Limited was incorporated on 3 March 2016.[12] It became a fully owned subsidiary of Kopana Investments Limited on 8 March 2016.[13] On the same date, William Duma was appointed company director.
Just under a month later on 5 April 2016, PHDC acquires Kopana Investments Limited shares in Malaga No.7,[14] with Gudmundur Fridriksson, Stanley Liria, and Zhongqin Shi replacing Duma as director.
An Investment Memorandum issued by PHDC in January 2017, indicates that Malaga No.7 Limited holds a 93 year state lease over land at Paga Hill.[15]
PNGi can now reveal a potential explanation for this set of transactions, based off testimony provided by a senior PHDC official.
According to this high level executive Kopana Investments Limited’s land holding at Paga Hill – Section 26, Allotments 16-20 – borders the proposed Paga Hill Estate development. Its incorporation in the project, the senior management team believe, is essential to the proposed K3 billion venture.
During June 2015, Kopana Investments and PHDC allegedly entered into a Cooperation Agreement. Under the agreement, Kopana Investments would avail of its land to the project, in return for net equity in the development, once completed.
The executive claims matters were complicated by the Paga Hill Ring Road, which snakes around Paga Hill’s southwest face. As a result of its construction, state leases over affected land had to be reissued to take account of the new infrastructure.
Kopana Investments Limited’s five allotments were amalgamated into Section 26, Allotment 32. A 93 year state lease was then issued to Kopana Investments’ subsidiary, Malaga No. 7, beginning on 1 April 2016.
To meet Lands Department requirements, PNGi is informed, it was essential that the state lease was issued to the original owner, Kopana Investments, or a fully owned subsidiary.
It appears the new state lease awarded to Duma’s subsidiary, was a striking deal. Ordinarily, rent on state leases is set at 5% of the land’s unimproved value (Land Regulation 1999, section 3).
PHDC corporate records indicate the annual rent owing on Section 26, Lot 32, is K30,936.[16] Unless a special exemption has been given by the Lands Minister, it would seem the land at Paga Hill is valued at K618,720.
This would be a bargain price for a prime plot, almost 1 hectare in size, on the shorefront of Port Moresby harbour.
For example, in a scholarly review of Port Moresby’s land and property market, The National Research Institute found that the average price, per hectare of land in the adjacent Town area was K29,854,000.[17]
Following the June 2015 Cooperation Agreement reached with Duma, PHDC anticipated it would take control of the titles to Section 26, Allotment 32, once reissued, under the notably generous terms acquired by Kopana Investments Limited.
This took place through a share transfer on 5 April 2016, which made PHDC sole owner of Malaga No. 7.


Network Graph 2: The acquisition of Malaga No.7 (Source: Investment Promotion Authority)
The PHDC executive contends the precise split of equity that will be awarded to Kopana Investments for its landed contribution to the property venture will be agreed at a later date, once the development is complete, and all liabilities met.
If this testimony is accurate, it would appear that State Enterprises Minister, William Duma, has acquired beneficial interest in a major public-private property development. It is also probable that this occurred employing land awarded to Kopana Investments under questionable circumstances during 2009 when he was Minister for Petroleum and Energy.
FOOTNOTES
[11] Paga Hill Development Company (PNG) Limited, Company Extract, Investment Promotion Authority, accessed on 1 July 2017
[12] Company Extract, Investment Promotion Authority, accessed on 1 July 2017
[13] Change of Shareholder (share transfer) (Form 13), Investment Promotion Authority, filing date 30 March 2016.
[14] Change of Shareholder (share transfer) (Form 13), Investment Promotion Authority, filing date 5 April 2016.
[15] Paga Hill Development Company (PNG) Limited. (2017). Information Memorandum, Port Moresby: Author. 
[16] Paga Hill Development Company (PNG) Limited. (2017). Information Memorandum, Port Moresby: Author.
[17] Ezebilo, E., Hamago, L., and Yala, C. (2016), ‘Assessment of market prices for residential property in Port Moresby: Do locations and property type matter?’, The National Research Institute Issue Paper 19, see p. available online: https://pngnri.org/wp-content/uploads/2016/06/IP19-201605-Ezebilo-et-al-Property-Prices.pdf (accessed 1 July 2017)

PNG’S ‘PUBLIC-PRIVATE PARTNERSHIP’ WITH PHDC

Since the property venture’s inception, the Paga Hill development has enjoyed strong national government backing. National government support extends back to 1997 when the then Tourism Minister, Michael Nali, agreed to lobby the National Executive Council (NEC) to declare the venture a project of national significance.[18]

Record 3: A PHDC Information Memorandum (2017) boasts of government support
Nali subsequently acquired a stake in PHDC, after he left office, through his company Kwadi Inn Limited,[19] which he evidently relinquished last year to Stanley Liria.[20]
This declaration of national significance was renewed by the NEC on 24 October 2012. In the NEC decision, signed by Prime Minister O’Neill, it is stated: ‘All matters relating to land on this project are resolved immediately so that Paga Hill Development company can commence construction without further delays’.

Record 2: NEC Decision NG 101/2012
More recently the project is said to have been dubbed Port Moresby’s ‘tourism city’ by the Minister for Trade, Commerce and Industry.[21] In December 2016 it was announced that the national government has signed a memorandum, formalising its role in the venture.[22]
According to The National, the Tourism, Arts and Culture Minister, Tobia Kulang, labelled the property development ‘one of the country’s biggest public-private partnership projects’.[23]
A month after the signing, PHDC issued an Information Memorandum to investors.[24]It claims a range of concessions have been made by the national government, many of which date after the alleged June 2015 Cooperation Agreement between PHDC and Kopana Investments. Key examples include:

  • PHDC claims it has, ‘signed a Memorandum of Understanding with the PNG Tourism Promotion Authority, Port Moresby City Authority (NCDC) and the Department of Trade, Commerce and Industry to support the development of this landmark project’.
  • Prime Minister Peter O’Neill is quoted as stating: ‘My Government declared Paga Hill Estate a “Project of National Significance” in 2012 and in late 2015 approved Paga Hill as a key project site for APEC 2018 with fiscal incentives to its partners and investors’.
  • The developer argues: ‘PHDC have secured the site on a long term state lease with Master Plan and Environmental Impact Study completed and all approvals obtained. The project is now a fully approved Integrated Resort and large-scale, high-end residential and marina development. The recently added casino element is in the process of government approval’.
  • The developer points to another joint project with the national government, facilitated by the venture: ‘Located within the Cultural, Exhibition & Convention Centre will be the National Hospitality and Tourism Training Academy. A joint initiative of the National Government, Hotel, Hospitality and Tourism operators and overseas supporters of PNG’.
  • Finally, the company claims, ‘the PNG Government is currently considering the establishment of a Special Economic Zone (SEZ) framework for Paga Hill Estate and branding the site as a tourism gateway to Port Moresby and PNG as a whole. The process is being championed by Hon Richard Maru, OBE, MP, Minister for Trade, Commerce & Industry, who is a strong advocate for the development. The establishment of a Special Economic Zone (SEZ) would compel all relevant State Departments and Agencies to work proactively and closely with PHDC in establishing the SEZ, assisting to avoid any unnecessary delays to the development of preliminary components ahead of the 2018 APEC summit. The State is also expected to commit to providing PHDC with applicable and appropriate relief such as import duty and tax duty concessions. SEZ benefits for Paga Hill Estate will be underpinned by incentives for direct foreign investment for the construction and realisation of Paga Hill Estate, which will constitute key infrastructure for the city, stimulating the economy during its construction and ongoing operation’.

Of course, following public acrimony between Prime Minister O’Neill and William Duma, and Justin Tkatchenko and PHDC,[25] it is unclear whether these ambitious claims will materialise in tangible results.
FOOTNOTES
[18] Minister for Civil Aviation, Culture and Tourism. (1997). Letter from Hon. Michael Nali, Minister for Civil Aviation, Culture and Tourism, to Mr Byron Patching, Manager, Jones Lang Wootton International Property Group, Central Plaza One, 345 Queen Street, Brisbane, 4000, Australia, 27 February.
[19] Notice of Change of Shareholder (share transfer) (Form 13), Investment Promotion Authority, filing date 22 December 2011.
[20] Change of Shareholder (share transfer) (Form 13), Investment Promotion Authority, filing date 2 September 2016.
[21] Ikuavi, J. (2016). ‘Tourism city’, Post-Courier, 20 December.
[22] Ikuavi, J. (2016). ‘Tourism city’, Post-Courier, 20 December.
[23] (2017) ‘Kulang: Development biggest PPP project’, The National, 21 December, available online:www.thenational.com.pg/kulang-development-biggest-ppp-project/ (accessed 1 July 2017)
[24] Paga Hill Development Company (PNG) Limited. (2017). Information Memorandum, Port Moresby: Author.
[25] TVWAN News (2017) ‘Paga Hill Controversy’, 5 June 2017, available online: https://www.youtube.com/watch?v=KOvPFZKiEwc (Accessed 2 July 2017)

QUESTIONS TO ANSWER?

A range of organisations and individuals have asked why the government continues to support the Paga Hill Estate, given the parlous track record of its key proponents, including PHDC’s controversial CEO Gudmundur Fridriksson.
In October 2012, a report issued by the International State Crime Initiative, revealed that senior executives spearheading the Paga Hill venture ran businesses censured in 4 x Public Accounts Committee reports, 2 x Auditor General reports, and 1 x Commission of Inquiries (subsequently, 2 further Commission of Inquiry citations were uncovered).
Included in this bundle of reporting is a Public Accounts Committee report which stated PHDC acquired the land at Paga Hill through ‘corrupt dealings’. [26]
The committee also argued that an Urban Development Lease and a Business Lease awarded in 1997 and 2000 respectively, were in violation of the Land Act 1996.
It appears Duma’s entry into the public-private consortium underpinning the Paga Hill Estate is no less controversial. The Supreme Court has raised red flags over the conditions under which Duma originally acquired land at Paga Hil – although it did not specify the name of the 5 allotments. Furthermore, the annual rental charged on the land’s unimproved value, if set at 5%, would indicate the property is significantly under-valued.
Furthermore, the Minister’s interest in the Paga Hill Estate is secured, a PHDC executive claims, through a private agreement, which is not available to the public for scrutiny.
Key questions that now must be asked of Mr Duma include:

  • Why was prime land on the harbour foreshore exempted from advertisement, and awarded to his company?
  • Why was annual rent on his landholding levied at such a modest rate?
  • Will Mr Duma make public the Cooperation Agreement signed with PHDC, so his beneficial stake in the public-private venture may be scrutinised?
  • Has he recused himself from all governmental decisions relating to the Paga Hill venture, noting explicitly his conflict of interest?
  • Has this beneficial stake in Paga Hill Estate been included in his annual statement provided to the Ombudsman Commission?
While the public awaits the results of the administrative inquiry into Duma’s alleged acquisition and sale of land at Manumanu – which was due to be tabled in parliament on 28 March 2017 – it would appear this deal with PHDC is equally deserving of judicious review.
FOOTNOTES
[26] Public Accounts Committee. (2007). Public Accounts Committee Report to Parliament on the Inquiry into the Department of Lands and Physical Planning, Waigani: National Parliament of Papua New Guinea, p.60.
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