Pressure over PMIZ is making Minister Maru behave very oddly

July 6, 2015 2 comments

Maru flicks a mickey at the rest of the Pacific

Nineteen Years and Counting

Signs of panic can be found in the Department of Trace Commerce and Industry’s defense of the PMIZ of late. First, the bungled Summons against it public critics, which eventuated in Human Rights cases being lodged against the Department. Now rumours of rogue state behavior being expressed by Minister Richard Maru as he shops the project in Europe. Fellow-PNG Pacific Island countries have failed to sign up for the industrial zone despite terms favorable enough to be considered unfavorable to the host country. And now, despite professed loyalty to the PNA and the region, Maru is now shopping the boondoggle to European canneries, thereby jeopardizing everything the Partners of the Nauru Agreement stand for in the first place. Now we learn that Maru would risk all Pacific trade relationships to stand alone in the Interim EPA that exists between PNG and the European Union, rather than move toward a collective and comprehensive EPA alongside its regional neighbours.That’s a big F U to the other Partners of the Nauru Agreement and other Pacific Island States.If this is the extent to which Maru is willing to go, we only have to ask what he personally has at stake.Where is the money from the Exim Bank loan? How has it been acquitted? What accounting has been done on this US$95 million loan? Where is the investment to date?

We may be witnessing the desperate stratagems of a marked man. Will he barricade himself inside a Gold Coast mansion (purchased perhaps in a wife’s name, or that of a holding company with a perfunctory name)? Will he turn ‘State’s evidence’ against fellow PMIZ campaigners like Gabriel Kapris and Sylvester Pokajam, in an effort to save himself?

A couple of weeks ago, observers were prepared to find all manner of media slander against the 11 Defendants in the gagging order initiated by the Department of Trace, Commerce and Industry. But despite noises about sinister NGOs and anti-development conspirators, little has emerged to destabilize their credibility.

Now we enter a fugue state where Minister Maru is literally capable of saying anything to save his skin.

 Minister Maru enjoys the view from his personal plot in the Pacific Marine Industrial Zone

Minister Maru enjoys the view from his personal plot in the Pacific Marine Industrial Zone

Papua New Guinea has officially withdrawn from being a part of a Pacific island bloc to negotiate a comprehensive Economic Partnership Agreement with the European Union.

Instead, PNG will continue trade discussions with the EU under the Interim EPA that it currently has.

Trade Minister, Richard Maru, made this announcement today saying this is done to safeguard PNG’s current trade arrangements with the EU and to further strengthen this relationship.

This announcement follows an intensive trip to Europe which started off in London with the UK-PNG Trade Investment Forum.

According to Maru, PNG is on a path to be on the EU’s good side and make PNG’s presence known in the European markets.

The strongest message PNG made was to announce in no uncertain terms that it is no longer interested in negotiating a comprehensive EPA.

“Papua New Guinea withdraws from all EPA negotiations, will not be part of any Pacific islands trade negotiating team, we will not attend any meetings as of today,” he said. Maru says this is to protect PNGs interest, most notably the K95 million PMIZ project in Madang. He said PMIZ is only “feasibly and viable ” because of PNG’s Interim EPA with the EU and PNG is not about to jeopardize that.

“In our talks we told the EU that, of the 10 canneries in Madang, 5 will be given to European companies.”

The discussions towards a more comprehensive EPA between the EU and 14 other Pacific Island countries have dragged on for 12 years.

In 2007, while the comprehensive EPA was still being negotiated, Fiji and PNG signed Interim EPA’s with the EU.

While this decision will affect other smaller pacific island countries, Director General for Trade, Ambassador Max Rai says the decision has been made.

“The (PNG) government has taken a stand now and we hope the message ripples right across the Pacific, that this (comprehensive EPA) will be a really wasteful effort. ”

Ambassador Rai said, they hope a comprehensive EPA with the EU will not be part of the agenda in the upcoming Pacific Islands Leaders Forum that will be in Port Moresby.

The other leg of the European tour was spent in Geneva, Poland and Brussels where talks were held with various prospective companies where discussions around downsteam processing were discussed.

The delegation was also on the lookout for companies in the field of telecommunication, shipping, banking and arilines to “drive the cost of business down” Minister Maru said.


O’Neill’s illegal logging: 742 days and counting…

July 6, 2015 Leave a comment


px-logo land grabbing


Peter O'Neill: Theft of forest resources: Guilty

Categories: Uncategorized

Current corruption scandal has its roots in the NPF saga

June 30, 2015 1 comment

Have a look at some of the Findings of the NPF Commission of Inquiry, you might just a have a better appreciation about the people now being talked about as a result of the SBS Dateline Video.

Look at how much money was lost then and since and this country continues to loose millions (by now it must be Billions) to a few filthy rich Papua New Guineans with their expatriate friends.

Corruption is derailing this country and the rights of the future generations to benefit from their equal share. We all have to act to stem this at the bud.

NPF Final Report

Post Courier, 2003

This is the 60th extract from the National Provident Fund (now known as NASFUND) Commission of Inquiry report. The inquiry was conducted by retired justice Tos Barnett and investigated widespread misuse of member funds. The report recommended action be taken against several high-profile leaders, including former NPF chairman Jimmy Maladina. The report was tabled in Parliament on November 20by Prime Minister Sir Michael Somare.

Executive Summary Schedule 6
Of major concern to the commission were large payments to Mecca No.36 Pty Ltd (now South Supa Store) owned by Peter O’Neill and NPF trustee Nathaniel Poiya.
The commission finds the deposit of K10,833.33 was in respect of Mr O’Neill’s rental allowance for April 1999 and in consequence that K10,833.33 of Mr O’Neill’s funds were held in this account.
* In paragraph, the commission made the following findings:
(a) PMFNRE cheque # 266923 for K45,000 was sourced from the NPF Tower fraud money;
(b) As a consequence, K5,000 of the Tower fraud funds remained in this account;
(c) As we have said earlier, we will come back to the payments to Williams Graham & Carman shortly. Mr O’Neill’s evidence was that none of these earlier payments had been made for his benefit so his K10,833.33 should still have been held plus the K5,000 of NPF Tower fraud moneys aggregating K15,833.33;
(d) The cashbook balance according to PMFNRE (Exhibit T1017) was only K10,854.68. Again it is clear either PMFNRE was “using” this money or Mr O’Neill’s or the NPF Tower fraud funds had been used to pay other cheques;
* In paragraph, the commission made the following findings:
The two cheques each for K50,000 presented on May 4, 1999, were funded from the NPF Tower fraud money;
* In paragraph, the commission made the following findings:
(a) After considering the whole of the available evidence, the commission finds that the sum of K102,300 paid by the Carter Newell cheque # 788441 which was derived from the NPF Tower fraud money was placed under the control of Maurice Sullivan and Ken Barker of PMFNRE upon its deposit on May 4. 1999, and that in exercise of the control so placed in him Mr Barker on the same day directed payment out of such funds of the two cheques # 266924 and 266925 each for K50,000 to PNGBC the first to make an International Money Transfer of the equivalent of K50,000 to Williams Graham & Carman, Solicitors of Cairns Australia and the second to make an International Money Transfer of the equivalent of K50,000 to Mr O’Neill’s former wife Cheryl Caley;
(b) The commission further finds that the bank fees of K36 were also paid from this deposit and that all of these payments were from funds derived from the NPF Tower fraud.
(c) It follows from these findings that of the funds remaining in this PMFNRE No.1 Trust Account after such payments and the debit of bank charges the residue of this K102,300 deposit amounting to K2264 plus the earlier residue of K5000, aggregating K7264 were held out of the NPF Tower fraud moneys and that K10,833.33 was held on behalf of Mr O’Neill;
* In paragraph, the commission made the following findings:
The commission finds that this deposit of K10,833.33 was in respect of Mr O’Neill’s rental allowance for May 1999 and in consequence of its other findings that the funds of Mr O’Neill held in this account increased to K21,666.66;
* In paragraph, the commission made the following findings:
There is insufficient evidence for the commission to make any definite finding in relation to these two payments of K6000 and K5000.
* In paragraph, the commission made the following findings:
The only source from which this cheque for K100,000 could have been fully funded was the deposit of K300,000 on the same day (see (m) above), which was derived from the NPF Tower fraud;
* In paragraph, the commission made the following findings:
(a) Cheques # 266930 and # 266931 aggregating K17,379.11 were paid from Mr O’Neill’s own funds;
(b) The dilemma, as we have said earlier, is that if the K10,833.33 of Mr O’Neill was applied in the earlier payment of K50,000 to his former wife, then there would not have been sufficient of his funds to cover this second payment to his former wife;
(c) Again the situation is confused by the use of the MJS/KB code on deposits of both NPF Tower fraud moneys and Mr O’Neill’s moneys and the payment out of moneys for the benefit of Mr O’Neill as well as others;
(d) Later investigations support the possibility that the various credits formed one common fund;
* In paragraph, the commission made the following findings:
(a) It is totally clear that the deposit of K300,000 on Friday, May 14, 1999, derived from the NPF Tower fraud was banked with the “MJS/KB” code; that the K100,000 transfer to PMFNRE No.2 Trust Account on the same day was sourced from this deposit; that the K100,000 transfer to Mecca (No.36) Pty Limited the following Monday also with the “KB/MJS” code was also sourced from this deposit and finally that the cash withdrawal of K100,000 on the following Friday yet again with the “KB/ MJS” code was also sourced from that deposit;
(b) As will be seen later in this report, the K100,000 transferred to PMFNRE No.2 Trust Account was also converted to cash on May 14, 1999, and could not be traced further;
(c) On the evidence before the commission, it is clear that the second K100,000 was received by Mecca (No.36) Pty Ltd and that such money was not earned;
* In paragraph, the commission made the following findings:
(a) The payment of K100,000 to PMFNRE No.2 Trust Account on May 14, 1999, derived from the NPF Tower fraud and could not be traced further;
(b) The cash withdrawal of K100,000 on May 21, 1999, was derived from the NPF Tower fraud and was received by Ken Barker and later paid to Jimmy Maladina;
(c) The payment of K100,000 to Mecca No.36 on May 17, 1999, was derived from the NPF Tower fraud and it was unearned by Mecca No. 36;
(d) Mr Poiya was a substantial shareholder in and director of Mecca No.36 Pty Ltd (now South Super Stores Ltd). At the time of the K100,000 payment to Mecca No.36 Mr Poiya was a trustee of the NPF;
(e) MR Poiya and Mr O’Neill benefited from the payment to Mecca;
(f) THE benefit received by trustee Poiya was improper and the commission recommends that he be referred to the Ombudsman to consider whether there had been a breach of the Leadership Code by Mr Poiya; and
(g) The benefit received by Mr O’Neill was improper and at the time he was subject to the Leadership Code, being executive director of Finance Pacific.
The commission recommends that Mr O’Neill be referred to the Ombudsman Commission to consider whether there has been a breach of the Leadership Code.
The payments made to Williams Graham & Carman were: See table 1.
The commission finds that all these payments were from NPF Tower fraud money and all were paid to the lawyers in relation to the purchase by Bethgold of the Kanimlba property. The K50,000.00 to Cheryl Caley on May 4, 1999 was from the same source and for the same purpose.
Although Mr Barker and Mr Sullivan are shown as the directors and shareholders of Bethgold Mr Maladina and/or Mr O’Neill had beneficial interests in that company held for him/them by Mr Barker and Mr Sullivan.
The commission’s investigations clearly showed the criminal activities of Mr Barker and Mr Sullivan, former PMFNRE managers who had fled to Australia. At paragraph, the commission has found:
(a) Both Mr Sullivan and Mr Barker were involved in the laundering and disposal of the proceeds of the NPF Tower fraud through the PMFNRE No.1 Trust Account and the use of a code in that process strongly suggests “guilty” knowledge which may render both men accessories after the fact to that fraud;
(b) The commission recommended that Mr Sullivan and Mr Barker both be referred to the Commissioner for Police to consider charges for aiding the offence of fraud and any other offences;
(c) The commission also considered that Mr Barker:
(i) LIED on oath regarding the refund of K99,000 to Mr Maladina;
(ii) falsely denied knowledge of payments of K102,300 and K300,000 made by Mr Maladina to PMFNRE No.1 Trust Account; and
(iii) falsely stated that K60,000 and K690,000 were used to purchase Treasury Bills (see paragraph 12.3.4).
As Mr Barker is now permanently residing in Australia it would be a waste of resources to refer him to the Commissioner for Police to consider charging him with perjury under the Commissions of Inquiry Act. If he ever returns to PNG, he should be so referred.
As the commission’s inquiries continued it became clear that many payments were made to or at the direction of Mr O’Neill, that these payments far exceeded the total funds legitimately held by PMFNRE and that a significant portion of these additional payments were sourced from funds which demonstrably were the proceeds of the NPF Tower fraud.
In trying to explain these matters, some of Mr O’Neill’s explanations were unacceptable, internally inconsistent and contrary to clearly documented factual evidence. As inquiries progressed further and the successive ledgers were examined in more detail it became clear that Ledgers 18 and 31 were Mr O’Neill’s own ledgers.
At the end of the day the commission was forced to conclude that Mr O’Neill actually owned PMFNRE.
To test Mr O’Neill’s unsatisfactory evidence, the commission constructed an extension of the cashbook as at paragraph 12.3.6 as follows:
The reconstructed extension of cashbook from May 30, 1999 to September 29, 1999. See table 2.
It was then able to make the following further findings.
This deposit of K10,833.33 was in respect of Mr O’Neill’s rental allowance for June 1999;
* At paragraph, the commission found that:
(a) The two cheques for K55,120 and K920 account exactly for the proceeds of the Nambawan Finance cheque for K56,040 banked the previous day and the commission so finds;
(b) The receipt of K55,120 into the No.2 Trust Account was kept “off book”;
* At paragraph, the commission found that:
The cheque #028585 for K275,000.00 obtained by Hunter Real Estate Limited was proceeds of funds paid out of IBD held by the Registrar of the National Court, which was the subject of litigation between Mr O’Neill and Mr and Mrs Donald.
* At paragraph, the commission found that:
The deposit was in respect of Mr O’Neill’s rental allowance for July 1999;
* At paragraph, the commission found that:
The deposit of K275,000 into PMFNRE No.1 Trust Account on July 16, 1999, was paid into the No.2 Trust Account in three separate cheques and receipted as a deposit on PMFNRE sale of property by Hunter Real Estate.
The evidence of Mr O’Neill’s involvement with regard to the No.1 Trust Account is discussed at paragraph 12.3.8 and it is clear that the only funds paid into or held in the No.1 Trust Account for Mr O’Neill aggregated K32,449.99 or on the view most favourable to Mr O’Neill the total would be K57,499.99. Yet quite clearly the sum of at least K167,397.11 was paid out for his benefit or at his direction.
At paragraph, the commission has found that:
(a) Given the above explanation, the commission is compelled to conclude that the source of the differentials was Mr Maladina’s funds from the NPF Tower fraud and the explanation given by Mr O’Neill does not withstand testing and cannot be accepted.
(Mr O’Neill’s explanation is further reported below at paragraph
(b) The PMFNRE No.1 Trust Account appears to have been treated as a common account containing the funds of Mr Maladina and Mr O’Neill and some other transactions.
Mr O’Neill’s explanations included claims that some of the payments were sourced from or paid as rental on his properties but his claim did not withstand scrutiny as other arrangements for rent were actually in place as recorded in detail in paragraph of the Schedule.



O’Neill’s illegal logging: 735 days and counting…

June 29, 2015 Leave a comment


There has still been NO ACTION to cancel the huge SABL land grab, revoke the unlawful leases or stop the illegal logging in Papua New Guinea.

It is now 735 days, more than two years, since Prime Minister Peter O’Neill was told that the SABL leases were unlawful and should be cancelled.

On June 24, 2013 O’Neill was given the reports of the SABL Commission Inquiry which detail the widespread fraud and mismanagement used by foreign logging companies to gain illegal access to over 5 million hectares of land.

O’Neill has REPEATEDLY STATED the leases will be canceled and illegal logging stopped.

In September 2013 O’Neill told Parliament:

“We will no longer watch on as foreign owned companies come in and con our landowners, chop down our forests and then take the proceeds offshore”

In June 2014, announcing an NEC decision cancelling the leases, O’Neill said

“We are taking these steps to reclaim our customary land illegally lost to foreigners with the help of corrupt public servants and leaders”

“As a responsible government we want to ensure that all citizens have access to the lands of their ancestors. We will not allow our land to be lost to unscrupulous people out to con our people” 

Most recently O’Neill promised a new Task Force to look at the Commission of Inquiry recommendations, but, WE ARE STILL WAITING for the leases to be cancelled and the logging stopped.

For 735 days O’Neill has failed to ensure the SABL leases are revoked and he has been complicit in the illegal logging of our forests by foreign logging companies.

Crucially he has failed to take any action to remove the corrupt public servants responsible for the land grab or distance himself from the politicians, including key Minister’s, complicit in the illegal deals and who are now blocking any positive action to revoke the leases and stop the logging.

Prime Minister Peter O’Neill has aided and abetted the theft of logs worth hundreds of million of kina and the destruction of thousands of hectares of pristine forest.

Peter O'Neill: Theft of forest resources: Guilty

Australia questioned over its role in corruption in PNG and Malaysia

June 29, 2015 Leave a comment

Park Your Money small

Money laundering on Australia’s watch

“Australia is becoming the choice destination for dirty politicians in the region to park their funds.” 

The Age

Two reports by The Age investigative team last week showed how corrupt foreign officials are laundering money in Australia. The stories cut uncomfortably close to the prime ministers of Malaysia and Papua New Guinea, generating outrage in both countries.

On Tuesday, we reported that Malaysian officials had used Australian real estate transactions to steal money from their citizens. They used a Malaysian government agency to buy a student accommodation block at Monash University, at an inflated price, and arranged for a $4.75 million kickback to be sent offshore.

On Wednesday, The Age and SBS presented undercover video footage that showed lawyers explaining how to bribe politicians in PNG and send tainted money to Australia.

The prime ministers of Malaysia and PNG, Najib Abdul Razak and Peter O’Neill, both sought to distance themselves from the players involved and announced wide-ranging investigations into their own governments. They were forced into action not because the behaviour uncovered by The Age was unexpected, but because it had been so clearly exposed in the Australian media and disseminated online.

The scourge of corruption is an old problem in both Malaysia and PNG, and their citizens are running out of patience. Some of the implications for Australia, however, are new. This stable, open and law-abiding nation has never had to think of itself as a place for corrupt leaders in the region to wash their dirty money. This week’s reports show how complacent we have become. Foreign officials are targeting weaknesses in the integrity of our systems.

Why did corrupt Malaysian officials choose something so brazen as an apartment block in Caulfield? The answer, in part, is that real estate is exempted from Australia’s otherwise-onerous anti-money laundering legislation. “Large sums of illicit funds can be concealed and integrated into the legitimate economy through real estate,” the agency responsible for tracking questionable money flows, AUSTRAC, says in a recent report, Money laundering through real estate. Why do corrupt PNG officials hire lawyers to do their dirty work? Because, in part, they too have been exempted from Australia’s money-laundering regime. “Legal practitioners provide a veneer of legitimacy,” says a second AUSTRAC report, which details how lawyers can abuse their “gate-keeping” and “facilitating” roles to conceal all manner of dodgy dealings.

Professionals in both industries see the legislative loopholes as business opportunities, as the PNG video footage makes abundantly clear. “The days of banging a million bucks into this secret numbered account in Singapore are over,” says one of the lawyers, Greg Sheppard, explaining how clients should conceal bribes in commercial contracts drafted by lawyers. Sheppard’s law firm partner, Harvey Maladina, was even more explicit. He suggested that clients could conceal corrupt money in inflated invoices issued by a well-known Queen’s counsel.

These revelations should help to shake this country from a deep complacency. Our reports point to substantial legislative gaps that need to be closed. Regulators need to wake up. The Age‘s investigative team has exposed all this is only after several Australian enforcement agencies chronically and systematically failed to fulfil their roles.

Australia has always relied on foreign capital and probably always will. What is new, and highlighted in these stories, is that much of it now comes from developing countries in our region where corruption is rife and rule of law is weak. People seeking to launder money have worked out that there are major weaknesses in Australia’s integrity and oversight systems.

How much does this failure matter? Just ask Papua New Guinea’s renowned corruption investigator, Sam Koim, who has been endeavouring to extract PNG public money from Queensland casinos and real estate – without success – for many years. As Koim told The Age: “Australia is becoming the choice destination for dirty politicians in the region to park their funds.” Australian authorities need to listen, and act.

Log exports reach new peak despite government promises

June 29, 2015 1 comment

Malaysian logging concessions

Papua New Guinea’s raw log exports reached a new high in 2014 despite numerous government policies on sustainable development, increasing downstream processing, ending round log exports and canceling the SABL leases.

Much of the increase in log exports has come from clear-fell logging in Special Agriculture and Business Lease area – something the Commission of Inquiry described as illegal and which the government promised to stop in 2013.

In 2014 log exports reached 3.8 million cubic metres, after growing steadily from 2.3 million in 2005.

In all 30% of log exports were from areas logged under Forest Clearance Authorities issued under SABL. The logging in these areas is being allowed to continue despite the clear evidence these land/resource deals were illegal, particularly as as they are not based on the approval of the customary land owners, and there was certainly no free and informed consent.

Nearly all the logs, some 88% or 3.34 million cubic metres, was shipped to China for domestic use and re-export as processed timber and finished products.

Taun is the timber with the largest export volume recorded (around 16% of the total) followed by kwila (8%).

West New Britain is the largest source of logs exports – accounting for 23% of the total – followed by East New Britain (18%, largely from SABLs). Then West Sepik (17%).

The largest single logging project, by far, is Rimbunan Hijau’s Sigite Mukus operation, in East New Britain. This is an SABL/FCA under the company name Gilford Limited.

With the SABLs, why does the Govt continue to take no action to support the landowners, when foreign-owned enterprises (in bed with some local leaders) have been handed hundreds of millions of kina of assets belonging to our own citizens, for virtually nothing?

sabl cartoon

More from the Transcript of the PNG Money Laundering Scam and Other Corruption

June 28, 2015 1 comment

Implicated by lawyers Maladina and Sheppard are Prime Minister Peter O’Neill, Treasury Minister Patrick Pruaitch, lawyer Jimmy Maladina, Australian lawyer and CQ Mal Varitimos, and PNG Chairman of the PNG Gaming Board, Controlled By Peter O’Neill


Charles Kua | PNG Blogs

The door blows off “business as usual” corruption amongst PNG’s big shots

Who would have thought that Greg Sheppard and Harvey Maladina would be the ones who would expose corruption not only to PNG but the world, instead of hiding it. Yet, the egos of both finally caused them to slip their guard (if Harvey ever had one) a little. Only a little because it is clear from the conversations with both that they see nothing wrong with the extent of corruption in PNG, think nothing is wrong about the loopholes being used to get away with bribery or anything else.

Don’t for a moment say that they are behaving like any lawyer.  Some lawyers (not that many, unfortunately, especialy in PNG) do have principles.  They reject some clients and they won’t give advice on some things.

The lawyers

The lawyers in the interview were Greg Sheppard, an expat who has worked in PNG in law for about 25 years, and Harvey Maladina, brother of infamous Jimmy Maladina of the 1999 NPF corruption scandal, that also prominently involved Peter O’Neill and Herman Leahy. All 3 were prosecuted but none were ever convicted. Harvey and Jimmy were previously with and started up Maladina Lawyers.

Maladina Lawyers in 2004 merged with a PNG legal firm called Young and Williams Lawyers. Young & Williams Lawyers has a long history in Papua New Guinea. The firm’s roots can be traced back to the 1960s at the old United Church Building, Ela Beach. Partners have come and gone but according to the web site of the firm (, the reputation of Young & Williams Lawyers will live on. In late 2004, another chapter was added to the life of Young & Williams Lawyers when the practices of Maladinas Lawyers and White Young & Williams Lawyers merged and consolidated their various practices under the Young & Williams Lawyers banner.  Harvey Maladina and Greg Sheppard are the partners. Also working at the firm are lawyers:  Kylie Najike, Priscilla Rumints, Molly Sumbuk, Venessa Vee, Wilson Mininga, and Alida Gubag.

Lame defences from Maladina and Sheppard once they were told they had been the subject of investigation

When Lawyers Sheppard and Maladina were informed by SBS Dateline that a story was being run on them, they apparently did not realise that every word they said had been videotaped. Their replies are the usual lawyer defensive language that uses up a lot of words that says nothing. Harvey Maladina especially makes statements in his reply to SBS Dateline that catch him in the trap and makes things even more convincing that these 2 lawyers were completely fooled into speaking truthfully. Now it is very difficult for them find a way to cover up their own words and deny saying what was captured on the video.

Harvey Maladina (brother of the infamous corrupt Jimmy of NPF thievery fame) and Greg Sheppard, the 2 partners in giving out “how to be corrupt” advice, obviously have no conscience.  As Greg Sheppard alludes to himself, he’s  in PNG for the money and nothing more. One wonders if there is something clinically wrong with the Maladina family, as stories have gone around for years that suggests that it is not Jimmy and Harvey alone who have less than acceptable ethics.

Some parts of the secretly taped conversation that did not air on the SBS programme

The videotape sounds just like a conversation between buddies.  Like corruption is a normal acceptable part of life.  Both make sure they give the hidden corruption fighter all the tips on how to be corrupt without getting caught.

Attached to this article is the full transcript, far more than you saw and heard on the video that appeared on Australian television. Here are some of the more memorable quotes in this transcript that you didn’t see on television:

Harvey Maladina about Jimmy Maladina and Peter O’Neill:     You know there was an inquiry at the … there was two guys that were implicated, that’s the prime minister and my brother.  And now they’re in power.  Well he’s the chief government advisor on anything.  Yes both survived the inquiry.  One is the prime minister and one is the government advisor.   They borrowed some money from a local bank, it’s called Papua New Guinea Banking Corporation. And now it’s BSP Bank South Pacific.  And at that time the chairman of the bank was the current prime minister.  So the inquiry chased the funds that was the loan that was given to this Japanese company and it went right around the circle.  And went back again to the guy lending the money.  Back to the prime minister yeah.  The problem was there was a missing link in this chain and that was my brother.  He had a law firm here.  So he took off to Australia and they didn’t extradite him so that saved the prime minister.  And um, he managed to stay in Australia until the inquiry was over.  He’s back in the country now.   [so the prime minister is] very loyal to him.

Harvey Maladina about Peter O’Neill:   He goes in a lot of politics and stuff like that, and he is good friends with former prime ministers and that’s how he built himself proper.  So he got himself appointed to the bank as the chairman and that’s when they reached proof of the money and that is why this Japanese company paid it back to them.  [Paid it back into their own bank accounts’  Yeah well exactly so they chased the money right back to the prime minister.

Harvey Maladina about Jimmy Maladina and Australian lawyer Mal Varitimos: Anyway the missing link was my brother, he took off to Brisbane in Australia.  And they didn’t extradite him and the inquiry wound down and there was a report presented but… And um he um he came back again.  Um there’s a case against him in the National Court but that’s been going for donkey’s years now.  Because he’s able to buy some smart lawyers from Australia to come up.  We’ve got some smarter ones than Mr Molloy.  Mr Molloy is good but we normally engage a guy called Varitimos, Mal Varitimos.  He’s based in Brisbane.  He’s a good lawyer, yes.  He does a lot of local cases up here.   We work with Varitimos and he is a QC and he is very good.  When we engage him, if you wanted him to represent you, you engage us, we engage him, and we do our bills, we do one bill to you, you pay us and we send him money to Australia, to his Australian account.  Umm like the financial institutions here, they give us a ceiling; I think it’s around 250,000.  We’re allowed to deal with in a month.  And after that they tell us for the following month.  [total per year is K6 million].   Yeah um he’s billed us more previously we are able to pay him.  See most of the guys, a lot of the guys here that come under scrutiny, they ship a large amount of money on a one-off basis to an account in Australia, that comes under scrutiny.  They are under investigation by the police here and red flag already with the Australian Federal Police to keep an eye out on these particular transactions.  [so this way of getting a larger bill from Australia and paying it and then there’s a balance which we can be released, do you think that gets through that kind of scrutiny?]  Yes normally if it’s through the law firms it’s um, they don’t usually question it, because it’s… especially if it’s the firm that I’m working with, it’s a prestigious firm.

Harvey Maladina about using overseas accountants to transfer money corruptly by Chairman of Gaming Board: I’ve got a partner here and my partner is a Western Australian guy, we’ve been in business together for twenty years or something.  Form Perth yes.  I know that he has a Singaporean accountant and funds are transfer there and from there to Australia.   There’s a lot of my….guys I know in politics…. and they go to offshore to collect.  Like one of my good mates he’s now in charge of the gaming board.  And he went offshore and I… he flew over to Singapore recently and I asked him “what do you do over there?” and he said “Oh I want to collect some payments”.   There were some funds remitted to hig account over there, to an account. And so he went to collect it so he came back quite a happy man so ummm.”

Greg Sheppard about shifting money:  You know. I had some clients recently who made a deposit to a Hong Kong company.  The Hong Kong company then sent a large percentage of that money to Singapore.  And um, the Hong Kong side said it was for maintaining computer equipment.  The Singapore side siad it was a commission.  The Singapore authorities saw the inconsistency and arrested everybody.  [you need] a consistent chain and something that is commercial.   The proper way of looking at it is that you can’t do these things, it’s illegal.  But there are other commercial arrangements which aren’t illegal that you may be permitted to enter into providing you get a clearance from your lawyer.   Becaues you know if the CIB come knocking on your door, you want to be able to say “oh this transactions was for this reason, bang bang bang, here is the clearance from my lawyer”.

Greg Sheppard on demanding bribes: Anybody who says they want seven figures, they are inviting prosecution.   Look if you were to pay seven figures to anybody, the world would fall in on top of you.  Just don’t even contemplate that sort of nonsense.  Um, small dribs and drabs are the only way to go.  Why would any company produce seven figures for anybody?  I mean what is the commercial reason behind it?  Well you need ot have one.  You know the days of banging a million bucks into this secret-numbered account in Singapore is over.

Anti-corruption fighter in disguise says “May I sort of take a risk and trust you with a name?  Obviously I’d ask that….

Sheppard:   What you mean the name of the minister?  Is it Pruaitch?

Anti-corruption fighter in disguise:  Funnily enough it is.  how did you.

Sheppard:  He’s, he’s an old client. Yeah the other problem with Patrick is he’s already being scrutinised by the Ombudsman. Because he did some crazy thing like he let some Malaysian timber guy buy him a house. So there was a house in his name and it was paid for by the Malaysian timber guy who wound up with a nice… They purchased the house here in Port Moresby in Patrick’s name paid for by a bank check from the Malaysian, you know. This was six to eight years ago. He will have a plan. But if it’s just popping it into my bank account, don’t even bloody think about it.

PNG’s Corruption Is Getting Progressively Worse Under Peter O’Neill

If the information about Peter O’Neill were the first serious allegations we’ve ever heard about the man, we could be doubtful.  However, the pattern over the past 15 years has been consistent.  Peter O’Neill is highly corrupt, he is surrounded by and supports highly corrupt people like him, and the country as a whole is drifting into a situation where corruption is as normal and expected and accepted as Harvey Maladina and Greg Sheppard portray in their conversations with the hidden camera.   This explosive programme was done by Australians, not Papua New Guineans.  We as a people cannot continue to sit back and wait for God or the Australians to save us from the problems we create for ourselves by not being attentive and controlling of our politicians.

It is time for you to start standing up more against corruption and the injustice that is drowning our country.  Don’t read this as another article, shake your head, and continue as before, doing nothing about it.  As long as you do nothing, and everyone else does nothing, that will leave only the corrupt people in PNG working hard and doing something.   They will remain in control like a mafia and the fault will rest with you and me.


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