Parkop Hands Over K300m to Chinese Multinational Slammed by World Bank for “Fraudulent Practices”

Last Friday EMTV beamed images of NCD Governor signing a K318 contract with China Harbour Engineering Company to upgrade roads in the nation’s capital.*

What they failed to report is that China Harbour Engineering has been blacklisted by the World Bank!

PNG Exposed reported this in April – no one in the hopelessly muzzled news media bothered to follow up on our lead.

But just in case people need reminding, here is a ‘greatest hits’ list that highlights the company’s disconcerting past:

• China Harbour Engineering Company’s parent company, and all its subsidiaries (including its PNG subsidiaries), have been blacklisted until 12/1/2017 by the World Bank for all contracts related to roads and bridges, owing to “fraudulent practices” (Source: World Bank 2011).

• The courts in Bangladesh found that China Harbour Engineering Company paid bribes to the son of the Bangladeshi Prime Minister, who was then sentenced to six years in prison. (Source: The Hindu 2011)

• In 2012 an Audit was conducted by the Jamaican government into two major infrastructure projects, one of which was awarded to China Harbour Engineering Company. The Minister for Transport, Works and Housing claimed,

“The report from the forensic auditor has unearthed wanton disregard for the conventions and procedures established by the Government of Jamaica for project implementation, administration and management. These breaches of existing procurement guidelines have drained precious budgetary resources and undermined the very foundation of public institutional integrity” (Source: Caribbean Analysis 2012).

• China Habour Engineering Company negotiated with the Cayman Islands Premier to build and run a major port facility. This deal was stopped, when the UK government blew the whistle over the procurement arrangements. Later it was revealed the process had been fast tracked by the Premier, in violation of legal process (Source: CayCompass 2013).

So it would appear when international firms are exposed by the World Bank and authorities in a diverse range of countries, ranging from Bangladesh through to Britain, they can still earn a fortune in PNG.

Thanks Mr Parkop another job well done.

* See http://www.emtv.com.pg/news-app/item/parkop-signs-road-contracts-for-ncd?category_id=20

COMPOSITION OF TASK FORCE SWEEP TEAM – DEPLETION OF MEMBERS

Martin Kombri | THE PNG NEWS PAGE

The NEC in its decision Decision No. NG03/2011 in Special Meeting No. NG02/2011 endorsed and set up the Task Force Sweep Investigation Team.

The Investigation Team comprises of the following persons/authorities:

1. Chairman – Mr Sam Koim (PLO from Sol.Gen Office)
2. Deputy Chairman – Superintendent Sylvester Kalaut (PPC ENBP and now Madang)
3. Chief Inspector Timothy Gitua (Director of Frauds & Anticorruption Squad) and six (6) investigators – 1 x Forensic Expert, 1 x Police Prosecutor, 2 x Financial Intelligence Unit Officers and 6 Mobile Squads.
4. A lawyer with the Proceeds of Crimes Act Division of the Office of the Public Prosecution.
5. An Officer with the Department of Treasury.
6. An Accountant from the Office of the Auditor General.
7. An Officer from Tax Compliance Division of IRC.
8. An Officer of the Department of Provincial and Local Level Government Affairs.
9. A Media Officer.

Now, the Deputy Chairman withdrew some time ago and is no longer a member of the team.

Furthermore, the current active members of the team are the Chairman, the Police Prosecutor Clement Awak, and two (2) other policemen; Pius Peng and A’aron Elijah.

Now, the investigation team is merely down to these four (4) persons.

Can the Chairman, Sam Koim, tell us the elites of PNG in this Forum:

1. Whether the membership of the investigation team has actually depleted? and
2. Whether the Deputy Chairman withdrew and on what basis?

Smare poem reveals how the elite quickly sell out

A poem, titled Papua New Guinea… My Land, reveals a young man passionate about his country and lamenting its decline at the hands of greedy foreign corporations.

The poem was written by prominent lawyer and corporate acolyte, Anthony Smare, more than 20 years ago.

But what became of this passionate, caring future leader?

Well, like so many others, Anthony Smare was quickly embraced by the beast that has destroyed PNG and he  became just another willing co-conspirator, living a life of privilege funded by the suffering of others.

Just look at how he has sucked up to the corporations and become fat feeding on their profits which have been built on the slums, hovels, denuded forests, and decay he lamented in his poem:

• Director at Nambawan Super Limited
• Director at City Pharmacy Limited
• Director at FM 100
• Director at Barrick Gold PNG
• General Manager, Corporate & Legal, at Barrick Gold
• Director at Kairar Properties
• Director at Telikom PNG Limited
• Director at Bemobile Ltd.
• Director at Papua New Guinea Mineral Resources Authority

Smare, you may not have created the problems, but you have embraced them, very willingly profited from them and ensured the destruction of your land has not only continued but has gotten a whole lot worse.

Seventeen months but still no justice for the people of Oro

It is now 17 months since we first exposed the criminal misuse of Restoration Funds in Oro Province but, despite the attentions of the police, Ombudsman Commission and local politicians, there has still been no justice for the long suffering people.

This is how we first exposed the scam:

• Corruption and the misuse of Northern Province Restoration Funds
• Further revelations about the corruption in Oro

Within days we were told the police were to make arrests: Sacked financial controller to be arrested for fraud

But still the revelations about the extent of the corruption kept coming:

• Entrenched web of corruption has overwhelmed Northern Province
• Documents confirm misuse of restoration funds
• Another restoration fund scam exposed

The police stepped up their investigation: Oro duo wanted for stealing property

Within weeks the of the exposure, the Ombudsman Commission promised an investigation: Ombudsman Commission to probe Oro disaster funds.

There was even a short documentary on the scandal: Rising from the Rubble.

Yet we are now 17 months on and there is still there is no justice for the people of Oro Province and our politicians are still crying their  crocodile tears:

Spending questioned at PNG Authority tasked with cyclone rehab

Radio New Zealand

Questions have been raised about a body set up to help fix damaged infrastructure in Oro Province after the devastating Cyclone Guba hit Papua New Guinea in 2007.
The Oro Restoration Authority was established by the government as a result of the cyclone, given nine million US dollars and tasked with restoring basic services to the villages.
The MP for Sohe in Oro Province, Delilah Gore, says the cyclone, which killed at least 170 people, destroyed many bridges, roads, and basic services.
She says in her electorate they haven’t seen any improvements.
“The Restoration Authority was put in place by the previous government, nothing has been done so far so I raised it on the floor with the hope that this government will take note of that and revive the restoration and do new appointments, give money so they can restore services, especially the infrastructure.”
The Governor of Oro Province, Gary Juffa, says he has already taken steps to investigate the Authority and says if people are found to have misused funding, they’ll be dealt with accordingly.

Wartoto faces more fraud charges

Radio New Zealand

Papua New Guinea businessman, Eremas Wartoto, has been charged with additional fraud offences – this time for allegedly misusing funds intended to rehabilitate agricultural plantations.

The latest charges brought by the corruption busting group, the Investigative Task Force Sweep, involve missing funds of six million US dollars..

Don Wiseman has more:

“In charges brought to date Mr Wartoto has allegedly misappropriated more than 16 million US dollars. He was earlier charged with diverting to his own use, funds intended as incentives for an airline operation and for the rehabilitation of a high school. Task Force Sweep’s Sam Koim says the alleged agricultural frauds are glaring examples of paper farmers and front companies feeding from the funds appropriated for the National Agricultural Development Project. He says the government’s intentions may have been genuine, but greed, lack of management and monitoring, incompetence and political patronage resulted in millions of kina being stolen and wasted. Mr Wartoto, who had evaded authorities by fleeing to Cairns in Australia, returned to the country earlier this month and was arrested last week in Kimbe. He is out on bail. More charges are expected.”

PM’s Chief of Staff in K3.7 million Finance Dept fraud says Commission of Inquiry

Prime Minister Peter O’Neill likes to talk tough about cracking down on corruption but his own Chief of Staff was recommended for prosecution in the Finance Department Commission of Inquiry report for fraudulently claiming K3.7 million as part of the Paraka Scams which have cost PNG hundreds of million…

 

Isaac Lupari, aided by Gelu and Paraka lawyers, stole K3.7 million

First published May 31, 2010

Former Ambassador to the European Union, Departmental Head and Consultant to the Prime Minister, Isaac Lupari stole K3.7 million from the people of PNG through false claims for breach of contract according to the findings of the Commission of Inquiry into the Finance Department.

The false claims were drafted and submitted by Guguna Garo, of Paul Paraka lawyers, and were illegally settled by the then Solicitor General, Zachary Gelu. In addition to the K3.7 million, a further K800,000 was paid to Paul Paraka lawyers from public funds for their role in facilitating the fraud.

The Commission of Inquiry has recommended Isaac Lupari, Zacchary Gelu and Guguna Garo all be investigated by the police with a view to prosecution for fraud and conspiracy.

From 1997 through to 2009, Isaac Lupari was employed by the State in a series of senior positions including Secretary Finance, Secretary Defence, Secretary Works, Special Advisor to the Prime Minister, Michael Somare, Secretary Transport, Ambassador to the European Union and Chief Secretary. In these positions Lupari was handsomely rewarded, receiving, for example K1,294,133 in the four-and-a-half year period between September 1997 and April 2002

But being paid over K270,000 a year wasn’t enough it seems because in December 2001 Lupari sued the State for breach of four separate employment contracts. Lupari claimed he had successively been unlawfully terminated as Secretary Finance, Defence, Personnel Management and Transport and was entitled to claim the balance of all pay and entitlements for the unexpired period of all four contracts. These claims were fraudulent as Mr. Lupari never suffered any loss of pay and entitlements and was employed by the State for the whole time that he claimed for and beyond.

However, Lupari’s initial legal claims were never pursued as when Somare was elected PM in 2002, Lupari agreed to withdraw them as part of the deal that saw him appointed as Ambassador to the EU. Lupari though did not honour that agreement and five months later, in January 2003, Paul Paraka lawyers resubmitted the four claims on behalf of their client.

Less than two months after the four claims were filed with the Court they were approved for settlement by Solicitor General Zachary Gelu. Gelu agreed to settle the claims despite clear instructions from the Department of Personnel Management that the claims were unlawful, without merit and should be vigorously defended.

Gelu personally signed the Deed of Settlement awarding Lupari K3,703,461.31 and at the same time approved the payment to Paul Paraka lawyers of an additional K800,000 for their costs (a hugely inflated figure given the claims had only been issued two months earlier).

Lupari’s illegal claims were drafted and filed by Guguna Garo of Paraka lawyers. The Commission found that Mr Garo must have known that at least one of the claims he submitted was baseless and that in all four cases he would have known Mr Lupari had suffered no loss. The Commission found Mr Garu knowingly misled the court from the very start.

Read the Commission report on Issac Lupari  (220KB)

PNG PM’s office issue alert

From NBC News and Islands Business

The Prime Minister’s Office has issued an alert to all, to be wary of any correspondence, bearing the purported signature of the Prime Minister, Peter O’Neill.

The alert is to all service providers within the public and private sectors, provincial governments, district administrations, State-owned Enterprises, donor agencies, resident diplomatic corps, banks, law enforcement agencies and the community.

The Prime Minister’s Chief of Staff, Isaac Lupari, says it has come to the attention of the Office of the Prime Minister, that O’Neill’s signature has been forged, and dishonestly used by unauthorised persons, to fraudulently obtain money, goods and other services from State entities and private companies.

He says, this signature scam is widespread and is taking place without the knowledge and authorisation of the Prime Minister.

Relevant agencies of the government have been alerted to trace and stamp out the source or sources of this deception.

This came to light after Opposition Leader, Belden Namah, tabled in Parliament last week, a letter purportedly signed by the Prime Minister, authorizing payment of outstanding bills to Paul Paraka lawyers.