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Posts Tagged ‘Peter O’Neill’

O’Neill’s illegal logging: 1337 days and counting…

February 20, 2017 1 comment

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sabl-how-much-land

Peter O'Neill: Theft of forest resources: Guilty

sabl cartoon

Elite network behind Paga Hill Estate

February 16, 2017 11 comments

Minister Justin Tkatchenko has this week called for a Commission of Inquiry into the murky deals behind acquisition of Paga Hill land and the abuse suffered by its former residents at the hands of Gummy Fredriksson and the Paga Hill Development Company.

Meanwhile, PHDC has issued a defence, claiming it has indefeasible title over Paga Hill, winning every legal challenge in District, National and Supreme Courts’.

We think we need to look again at the facts, and republish here an article from May 2016:

paga hill

Peter O’Neill, Michael Nali, Gudmundur Fridriksson, Rex Paki, Jimmy Maladina, Dame Carol Kidu, Labi Amaiu, Tom Amaiu, these are just some of the names uncovered through an extensive probe that looks into the power players behind Port Moresby’s controversial Paga Hill Estate development, and their business partners.

The investigation was conducted by a senior criminologist Dr Kristian Lasslett, who began forensic research into the real-estate venture during 2012.

In the post, which first appeared on statecrime.org, Dr Lasslett raises new questions over the shareholders and executives standing behind the luxury real-estate development on Port Moresby’s harbour foreshores, and their connection not only to some of the biggest names in Southern Highlands politics, but numerous major corruption scandals.

Dr Lasslett connects Paga Hill executives and shareholders to major players into the Commission of Inquiry into the National Provident Fund, the Commission of Inquiry into the Department of Finance and the joint special inquiry into the Public Curator’s Office conducted by the Auditor General and Public Accounts Committee.

He also provides evidence documenting potentially illegal land transactions lying at the foundations of the luxury real-estate project.

And this couldn’t come at a more important time. It was recently revealed that the Paga Hill Development Company – under the leadership of Icelandic businessman Gudmundur Fridriksson – is bankrolling Dame Carol Kidu’s legal case to shutdown a film that documents the real-estate venture and the valiant efforts by our own justice fighters to save a historic national park from the developer’s knife.

Back in 2006 the Public Accounts Committee alleged the Paga Hill Estate was spearheaded by ‘foreign speculators’, who secured the title through ‘corrupt dealings’. A decade later it seems the controversy is still well and truly alive.

The Paga Hill Estate – A vision for a ‘progressive’ future 

Once designated a national park, the majestic surrounds of Paga Hill have been eyed by numerous real-estate developers over the years. However, it is the Paga Hill Development Company (PHDC) which succeeded in clearing the land of its residents and national park status.

This paved the way for a development that will evidently include luxury hotels, 800+ residential apartments, sporting facilities, marina precinct, and multi-use commercial precinct.

PHDC boasts, ‘with tourists and visitors staying at the Hilton Hotel, residents of the site, together with city visitors enjoying the waterfront retail, restaurants and marina complex, the area will be a buzzing melting pot, creating a new image for a progressive Papua New Guinea’ (Hilton Hotels strongly denies  any involvement in the project).

Even among the rubble produced by a brutal demolition exercise in 2012, the site’s development value is readily apparent.

Of course it is always important to ask, who in particular will benefit from the proposed real-estate venture? Rarely are such projects universally beneficial.

We at least know one core clientele. It was recently announced that the estate ‘will be the venue for the Leaders’ meetings at the Asia-Pacific Economic Co-operation summit in Port Moresby’ slated to take place in 2018.

This is one of the most important multilateral forums in the Asia-Pacific region. If this announcement is true – unlike the partnership with Hilton Hotels – this gives the venture a special strategic importance for the summit’s principal sponsors the PNG and Australian governments.

Although the construction timeframe looks tight, PHDC has announced that the Shenzhen based, Zhongtai company, will collaborate in the development, with Chinese government backing.

The project also evidently has the support of the National Capital District Commission and PNG’s national government. According to PHDC’s website the ‘PNG Government will provide the support through relaxation of import duties and taxes’.

However, over its twenty year lifespan what is perhaps most striking about the Paga Hill Estate is the project’s ability to weather controversy. In 2007 the Public Accounts Committee accused PHDC of acquiring the land through ‘corrupt dealings’.

Five years later the project hit the headlines again after residents faced a brutal demolition exercise, executed by the Royal PNG Constabulary, allegedly at the behest of the company. This event became iconic when the opposition leader, Dame Carol Kidu, was frogmarched from the scene by police officers who had used live ammunition on residents. She argued PHDC was not an appropriate company to be entrusted with Paga Hill (Kidu later retracted her statement, and entered into a consultancy contract with PHDC).

In October 2012 matters got worse when it was reveal that PHDC’s CEO, Gudmundur Fridriksson, has managed or owned businesses censured in investigations conducted by the Public Accounts Committee, the Auditor General’s Office and the Commission of Inquiry into the Department of Finance – seven in total.

The details were covered extensively by the Australian media, although sadly little of the controversy made its way into PNG’s muzzled press. That said, PNG citizens have created a vibrant social media alternative, which became a vital hub for circulating information on Paga Hill.

A month after this expose Fridriksson took leave from an Australian government funded think-tank where he was CEO, evidently to pursue business interests in PNG. His presence has now been wiped entirely from their website.

The wife of prominent Australian indigenous lawyer Noel Pearson – the latter is a key figure behind the think-tank – then disinvested of her shares in PHDC during January 2013.

Despite the turbulence, Papua New Guinea’s O’Neill Government has time and time again rallied behind the venture. Ministers have issued supportive press statements, the government real-estate firm NHEL  agreed to partner in the project on a 50/50 basis, and the development is now receiving generous tax breaks.

This is nothing new, from the project’s very inception in 1996 the executives pushing this luxury estate have proven adept at garnering support from some of PNG’s most powerful political forces.

A rejected planning application and Michael Nali MP

The first major challenge to getting the project off the ground was rezoning the land at Paga Hill and obtaining an Urban Development Lease. Back then it was the Paga Hill Land Holding Company (PHLHC) – a precursor to the Paga Hill Development Company – which led the way.

According to Investment Promotion Authority records – Papua New Guinea’s corporate registry – its shareholders included Rex Paki, Felix Leyagon, and the Western Australian company, Fidelity Management Pty Ltd. Its Directors were Rex Paki and Gudmundur Fridriksson.

Fridriksson used the same Perth address as Fidelity Management Pty Ltd in records he submitted to the Investment Promotion Authority for Asigau (PNG) Holdings Limited, a company he owned with his wife, Tau Fridriksson. Initially the landholding company’s Secretary was Tau Fridriksson, according to Investment Promotion Authority records she was replaced on 1 July 1998 by Rex Paki.

paga hill fidelity

Clearly a  key player during the project’s start-up period was the Shareholder-Director-Secretary, Rex Paki, who was also the principal of Port Moresby firm Ram Business Consultants. Ram would go on to collect its own share of official condemnation from the Commission of Inquiry into the National Provident Fund, in addition to Public Accounts Committee and Auditor Generals Office investigations.

Despite having up and coming executives at the helm, PHLHC’s initial proposal for a luxury estate at Paga Hill was rejected by the Physical Planning Board in late 1996. The board noted, ‘proper procedures in relation to the processing of Planning applications were not followed’. This seemingly put an onion in the ointment, unless the application was approved, and the land rezoned, the Land Board could not lawfully issue an Urban Development Lease.

However, the company received a major boost in 1997, when its proposal obtained the backing of Michael Nali, the Minister for Civil Aviation, Culture and Tourism.  On 27 February 1997 he wrote to PHLHC stating: ‘It give [sic] me pleasure to confirm my full support to your proposed comprehensive mixed use development of Paga Hill … I am prepared to sponsor a submission to the National Executive Council [Cabinet] next month to have the project endorsed as a property of National Significance. It deserves the full support of Papua New Guinea’.

Paga Hill Nali letter

Subsequently, Michael Nali acquired a 9% stake in PHLHC’s successor vehicle the Paga Hill Development Company (PHDC) through Kwadi Inn Limited, which Nali is the sole owner of. However, it should be underlined this occurred in December 2011. By then Nali had lost office.

Yet the importance of Nali’s involvement in 2011 can’t be underestimated. A towering figure from Papua New Guinea’s Southern Highlands, Nali is in business with some of the nation’s most powerful individuals.

Take the example of NIU Finance Limited. According to Investment Promotion Authority records [PDF], Nali’s company Kwadi Inn obtained a significant stake in this company during 2009, joining a select cast of executives and investors.

According to its last Annual Return, the company’s Managing Director is Peter O’Neill, Papua New Guinea’s Prime Minister.  Peter O’Neill again appears as the largest shareholder in NIU, through his companies LBJ Investments Limited, and Paddy’s Hotel & Apartments Limited. Another notable shareholder in this enterprise is Piskulic Limited, a company wholly owned by Ken Fairweather, Member of Parliament for Sumkar.

There is no evidence on the public record to suggest either O’Neill or Fairweather have been involved in the Paga Hill Estate. Nevertheless, it is clear Nali circulates in powerful business circles.

And it goes further than this. It appears that Nali had direct business links with PHLHC’s Rex Paki and Felix Leyagon dating back to 1996-1997, the period when he agreed to sponsor the Paga Hill development as a project of national significance in Cabinet.

According to company records kept by the Investment Promotion Authority, on 11 November 1996, a company Waim No.54 Limited, was incorporated. Its two Directors were Rex Paki and Felix Leyagon. The company also had two equal shareholders, the Tourism Minister, Michael Nali and Mary Nali.

In addition to this, Waim No.54 Limited’s registered address was Ram Business Consultants, ADF Haus, Ground Floor, Musgrave Street, Port Moresby, National Capital District, Papua New Guinea. This is the same registered address employed by PHLHC.

If accurate, IPA records suggest Rex Paki and Felix Leyagon were Directors at a company owned by Michael and Mary Nali. Furthermore, Michael Nali’s company, Waim No.54, also shared PHLHC’s registered address.

During this same period, Michael Nali, in his Ministerial capacity agreed to sponsor PHLHC’s proposed Paga Hill property development in Cabinet as a project of national significance, a venture  in which Rex Paki and Felix Leyagon were shareholders, with executive involvement from Gudmundur Fridriksson and Paki.

Paga Hill network

Public Accounts Committee alleges ‘corrupt dealings’

Of course, it cannot be deduced from these facts that the above parties were involved in any wrongdoing. However, in light of a subsequent Public Accounts Committee inquiry, which alleged that the land at Paga Hill was secured by PHLHC through ‘corrupt dealings’, this new link raises questions.

Underpinning the Public Accounts Committee’s concern was the circumstances under which the lease was obtained. For instance the Urban Development Lease was awarded to PHLHC when the land was still zoned open space. Before she recanted, Dame Carol Kidu observed this was in violation of the Land Act 1996, section 67, which declares, ‘a State lease shall not be granted for a purpose that would be in contravention of zoning requirements under the Physical Planning Act 1989, any other law relating to physical planning, or any law relating to the use, construction or occupation of buildings or land’.

Subsequently, PHDC was awarded a full 99 year Business Lease, despite the fact the improvement covenant set out in the Urban Development Lease was not completed as required.

The Public Accounts Committee claimed  it was not surprised this covenant remained unactioned. It observed, ‘the Lessee cannot pay the Land Rental and has sought relief from that obligation, much less fund a development of the magnitude required’.

paga hill lease

However, apparently this is not the only occasion that a company connected with Ram Business Consultants is alleged to have been involved in illegal land dealings. Those familiar with the Commission of Inquiry into the National Provident Fund Chaired by Judge Tos Barnett,  may have had a touch of déjà vu when the name Waim was mentioned.

Ram Business Consultants, Waim No.92 and the NPF Commission of Inquiry

It was another holding company, Waim No.92 Pty Ltd, that was allegedly used to defraud the National Provident Fund – a transaction that saw one conspirator sentenced to six years imprisonment with hard labour. According to the Commission of Inquiry, controversial PNG businessman Jimmy Maladina was the ‘secret owner of Waim No.92 Pty Ltd the shares of which he initially owned through his wife Janet Karl, and an accountant Phillip Eludeme. Ms Karl’s share was later transferred to Phillip Mamando who resided at the Mr Maladina’s residence’.

The Commission of Inquiry alleges that ‘Mr Maladina was responsible for bribing Land Board chairman Ralph Guise and Lands Minister Viviso Seravo, to ensure Waim No.92 was granted the lease of the Waigani Land on very favourable terms’. It continues: ‘The records of the Land Board indicate it notified Waim No. 92 that it had been recommended as the successful applicant and on September 28, 1998, Waim No. 92 received notice that a corruptly reduced purchase price of K1,724,726.10 was payable before title would issue, with annual rent to be K17,000 (instead of the legally correct amounts of K2,866,000 and K143,000 respectively)’.

The Commission of Inquiry claims that Waim No.92 frontman Philip Eludeme acted as a key fixer, ‘prior to the Land Board hearing, Mr Eludeme had approached Minister Seravo seeking favourable consideration for Waim No. 92’s application and, at Mr Seravo’s request, had performed, free of charge, accountancy services for Minister Seravo valued at K100,000′.

According to the company’s annual returns for 1998, Waim No.92’s  registered office during this period was Ram Business Consultants, ADF House. While its two shareholders cited above, Philip Eludeme and Phillip Mamando, similarly list their registered office as Ram Business Consultants, ADF House.

During 1998 Maladina’s alleged fixer, Philip Eludeme, was a director of the company Sulawei Limited, along with PHLHC shareholder, Felix Leyagon. Sulawei Limited’s  registered address was again Ram Business Consultants, ADF House.

paga hill ram network

It would thus appear there were multiple links between two networks alleged to have been involved in similar style illicit land deals by the Public Accounts Committee and the Commission of Inquiry into the National Provident Fund, respectively.

The Paki Fridriksson split and the Inquiry into the Office of the Public Curator  

The original development vehicle was of course the PHLHC. However, the Auditor General notes in early 2000 its two Directors apparently part ways [PDF], with Gudmundur Fridriksson evidently leaving Ram Business Consultants where he was alleged to have been employed (Fridriksson is PHDC’s current CEO).

Fridriksson was then involved in setting up a number of companies including Anvil Legal Services Limited, Anvil Project Services (PNG) Limited, Anvil Commodities and Trading Limited, Anvil Marine Limited, Anvil Marketing Consultants Limited, and CCS Anvil Limited.

Anvil Project Services (PNG) Limited and CCS Anvil Limited  have been censured in the course of  inquiries conducted by the Auditor General, Public Accounts Committee and the Commission of Inquiry into the Department of Finance. Perhaps the most controversial of these companies is Anvil Project Services (PNG) Limited,  which was awarded lucrative consultancy contracts with the Public Curator’s Office (shortly after Ram Business Consultants lost its contract with the same office).

This award wade made despite the fact the arrangement had been rejected by the Central Supply and Tender Board owing to no public tender – a procedure which is in violation of Papua New Guinea’s Public Finances (Management) Act1995.

The contract went ahead anyway, although it is alleged [PDF] by the Public Accounts Committee and Auditor General, that payments were made out of private estates held on trust by the Public Curator.

According to company records kept at the Investment Promotion Authority, Gomoga Jack Nouairi, the Acting Public Curator at the time which the Public Curator and Anvil began working together, had a 30% stake in Anvil Project Services (PNG) Limited – the remaining 70% was owned by Gudmundur Fridriksson and his wife through the company Asigau (PNG) Holdings Limited.

Nouairi was also Director of Anvil Commodities and Trading Limited, in which Anvil Project Services (PNG) Limited had a 50% stake, and was a 50% owner of Anvil Legal Services Limited, along with Gudmundur and Tau Fridriksson.

paga hill anvil network

Another company implicated in the inquiry into the Public Curator’s Office was Jac’o Business Consultants Limited, a concern owned by its principal Jack Naiyep. Despite being paid K1.5 million by the Public Curator’s Office, the Public Accounts Committee claims ‘there was no evidence that any formal procurement had ever taken place, nor was there any evidence of any formal contract’.

Naiyep and the Fridrikssons were business partners in a separate company they co-owned together, Anvil Business Services Limited.  Naiyep also had a stake in Mamaku Mai No.3 Limited. Before the latter company was deregistered it was connected to the family of former Prime Minister Bill Skate.  Also of significance is one of the company’s Directors, Paul Wagun.

It was a Paul Wagun who replaced Gomoga Jack Nouairi as Public Curator, and submitted evidence to the Public Accounts Committee and Taskforce Sweep contesting any wrongdoing by his office or Anvil (PNG) Project Services Limited. It cannot be confirmed this is the same Paul Wagun, however, given Jac’o Consultant’s role in the Public Curator’s Office, the overlap is concerning.

Sadly in a subsequent inquiry into this affair by Papua New Guinea’s anti-corruption agency, Investigation Taskforce Sweep, none of these crucial links between Fridriksson, Nouairi, Naiyep and Wagun were acknowledged in its case report, despite being freely obtainable from the Investment Promotion Authority company registry. When these flaws were noted by this author in a report published last year, Investigation Taskforce Sweep threatened to sue for defamation.

Another interesting company set up during this period under the Anvil stable, was Anvil Marine Limited. During its period of operation 2002-2005, the company was owned by Gudmundur and Tau Fridriksson, along with the father and son team, Tom Amaiu and Labi Alex Amaiu. Tom Amaiu is a former Member of Parliament, who was sentenced to five years prison for theft.

His son Labi Amaiu is the current Member of Parliament for Moresby North East, and has patronised PHDC, featuring prominently in the company’s promotional material. He can be seen in this video published by PHDC lauding Gudmundur Fridriksson. Amaiu states he would like to ‘congratulate and thank the CEO of Paga Hill development for a successful venture, this is what we call legacy, and I am proud to be part of that legacy’.

Fridriksson’s companies featured in a number of other inquiries during this contentious period, including the Commission of Inquiry into the Department of Finance. Nevertheless, public condemnation from Papua New Guinea’s anti-corruption agencies has not significantly impacted on PHDC’s grip over the land at Paga Hill.

Paga Hill Development Company’s Southern Highlands Connection

Part of PHDC’s success appears to be linked to its influential stakeholders. It will be recalled that the Urban Development Lease was originally awarded to PHLHC, a company jointly owned by Rex Paki, Felix Leyagon and Fidelity Management Pty Ltd. When the lease was converted into a 99 year Business Lease in 2000, the owner was a new corporate vehicle, PHDC.

The Public Accounts Committee in its inquiry drew attention to this – the recipient of any converted lease, it argued, should have been the initial owner PHLHC. At the time, PHDC was owned by Fidelity Management Ltd Pty, a holding company which shared a registered address in Perth, Australia with Gudmundur Fridriksson. But unlike PHLHC, Rex Paki and Felix Leyagon were not on the share register.

In 2005 ownership of the company changed hands, as Fidelity Management Ltd Pty’s shares were transferred to another vehicle,  Anvil Holding Limited. At this time Anvil Holdings Limited was owned by George Hallit, along with Gudmundur and Tau Fridriksson. However, between 2008 and 2011 there were a series of further changes to PHDC’s ownership structure. By the end of it, the Fridrikssons’ apparently divested all their shares in the company. It was PHDC’s lawyer, Stanley Liria, who became the majority shareholder.

Originally from the Southern Highlands, Liria has published a number of legal texts.  The first was launched in 2005 by Southern Highlands political heavyweight Peter O’Neill who informed the Post-Courier he would recommend to his ‘parliament colleagues that they buy the newly published book’.

Liria is also commercially linked to a number of high profile Southern Highland politicians. For instance, Liria is Director of Southern Highlands Holding Limited, along with former Minister, Michael Nali, who is also a PHDC shareholder via Kwadi Inn Limited. The sole shareholder of the holding company is the Southern Highlands Provincial Government.

In addition, there is Sharp Hills Investment Limited, a company fully owned by Southern Highlands Governor William Tipi, who entered parliament as an MP for Peter O’Neill’s People’s National Congress party. According to Sharp Hill’s company records, its registered office is Liria Lawyers, a firm which Stanley Liria is the principal of. William Tipi was also formerly a shareholder in Southern Highlands Holding Limited, presumably as a trustee for the provincial government.

Alongside Liria at PHDC is Michael Nali, who through Kwadi Inn, has acquired a 9% stake in the company – although this was reduced to 2% during April 2016. As we have already observed, Nali is in business with Papua New Guinea’s most powerful political players including Prime Minister O’Neill.

Curiously absent though is Gudmundur Fridriksson. Despite being the principal visionary and driver behind the project he has seemingly divested from the company, while retaining an executive role as CEO.

Nevertheless, given the current political gravity in Papua New Guinea, having backers with strong Southern Highlands credentials cannot have harmed the company over the past five years, as it has navigated significant public resistance to its real-estate venture.

Cold comfort 

All this analysis is rather academic for former Paga Hill residents. Many had their homes, belongings, church and school destroyed through a number of demolition exercises between 2012-2014 (PHDC has only been directly linked to the first exercise in May 2012). The soul and life of the community is captured in a moving song they composed to commemorate the destruction:

As a result of the demolition exercise, the site is now being prepared for the luxury estate which Michael Nali lauded as Minister back in 1997. Twenty years on, as the development is promoted as a host site for APEC 2018, questions still linger over the land transactions that underpinned its inception and a number of  executives involved in stewarding this project.

Given the systematic efforts being devoted to censoring a documentary film covering this controversial ventureone senses these questions may encroach on very powerful interests indeed.

Yet whatever happens with Paga Hill, audiences may sense the bell tolls for thee. As a real-estate venture Paga Hill is not unique or exceptional, even if its displaced residents are a very special group indeed.

injunction paga hill

Around the world cities are transforming through a process of creative destruction, or what geographer David Harvey calls accumulation by dispossession. They are becoming spaces moulded in the image of power, money, corruption and violence.

Indeed, the technical and often highly opaque character of urban governance is a breeding ground for abuse and inequality. It is a matter for wonks, bureaucrats and developers. It needs to be a space of popular, public participation.

The Opposition calls this to our attention. Of course, what we do to confront these dilemmas is the next urgent conversation to be had.

O’Neill’s illegal logging: 1330 days and counting…

February 13, 2017 Leave a comment

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It is now just a few months to the election, but there is still NO ACTION to reverse the huge SABL land grab. NO ACTION to return the land to customary landholders and NO ACTION to stop the illegal logging in SABL areas.

It is now 1,330days since the reports of the SABL Commission Inquiry which detail the widespread fraud and mismanagement that has allowed foreign logging companies to gain illegal access to over 50 thousand square kilometres of land.

Since June 2013, more than three-and-a-half years ago, O’Neill has REPEATEDLY promised us the leases will be canceled and illegal logging stopped.

In September 2013, O’Neill said in 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 supposedly 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” 

In 2015 the Chief Secretary stated:

“It is widely known that vast amounts of pristine forest have been logged to enrich a corrupt few people, while landowners have unknowingly lost their most valuable asset – their land”.

And just three months ago, on November 4, O’Neill told Parliament and the Nation:

“I am pleased to say that all the SABL leases to be cancelled, instruction has now gone to the Lands Dept and as of today I can assure you that leases are now being cancelled and where there are projects now existing, we’ve encouraged the landowners to renegotiate many of those leases arrangements that they have made with the developers.

“These leases were given without much thought in the past. As a result, a lot of the landowners stood to lose all their years of generations of ownership over the land that they have had for many years.

“We do not want the rightful landowners lose their rights to land.

“That is why we have instructed the department of Lands and Forestry to cancel all the SABL.”

But, despite all the promises, no action has been taken to cancel the leases, landowners are receiving no support from the government in their battles against the land grabbing and WE ARE STILL WAITING for the logging to be stopped.

For 1,330 days O’Neill has failed to ensure the SABL leases are revoked and has been complicit in the illegal logging of our forests by foreign logging companies.

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

United Resources Party at the centre of Manumanu land scandal: former and current leader implicated

February 7, 2017 2 comments

pok-and-duma

Yesterday Peter O’Neill announced a Commission of Inquiry would be launched into the Manumanu land deal. We can welcome this move, without celebrating its author.

O’Neill has had numerous opportunities in the past to investigate major land frauds, yet has done nothing. NHC residents, warned O’Neill the public housing estate was being sold off on mass, and the proceeds were being pocketed by politicians and private developers. O’Neill promised action but nothing was done, and the NHC continues to be mired in corruption and fraud. 

When Dame Carol Kidu warned the Prime Minister about major corrupt dealings behind the Paga Hill Estate – before she shifted sides following a A$178,000 consultancy payment – much was promised about investigating the project being pushed by Gudmundur Fridriksson (and it appears William Duma), but nothing was done.

Furthermore, while the results have been to hand for many years from two Commission of Inquiries into the Department of Finance and the SABL land grab – much has been promised, nothing has been done.

So it would seem fair to ask, why the change in posture?

Lets look at the key suspects in the case. William Duma, and Fabian Pok have been at the centre of this scandal. Yesterday O’Neill revealed a new suspect. The owner of Portion 698, Kitoro No.64 Limited, who was paid K15.4 million for their state lease, after the Defence Department reclaimed the land.

It can be revealed that the owner of this company is Tim Neville, former United Resources Party Leader.

So at the moment we have three suspects, who are all linked to the United Resources Party.

Important questions emerge.

We know that O’Neill presides over a government of robber-barons. They do not operate, however, as a cohesive unit. Instead they divide up the government into territory, which different groups assume responsibility for and abuse for personal financial gain.

It appears from the evidence being presented the lucrative black market in land has been heavily exploited by United Resources Party heavyweights.

Which raises the question. Is this turf wars between different factions within government over lucrative corrupt industries?

Or are we seeing tensions within Cabinet now exploding, as O’Neill attempts to soil rivals in the lead up to the election? 

We can only speculate.

Either way, this should not diminish support for a thorough investigation of this land fraud. There is a thriving black market in land and its impact on the nation is devastating.

But why stop at Manumanu – isn’t it time to prosecute all those involved in the abuse of state leases, whether they be sweetheart 99 year business leases given to political cronies for nothing rents, or SABLs acquired by defrauding landowners?

O’Neill’s illegal logging: 1323 days and still counting…

February 6, 2017 1 comment

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Peter O'Neill: Theft of forest resources: Guilty

px-logo land grabbing

sabl cartoon

Duma Scandal Thickens – The Fox is in the Henhouse

February 6, 2017 2 comments

william-duma 

When PNG Blogs exposed the Duma scandal, in which the Minister is alleged to have personally benefited from K50 million paid by the State to relocate the Lancron naval base, it was hard to know where to begin analysing the affair. There were so many angles!

Over the weekend we exposed the corrupt background of the man appointed by the Prime Minister to supposedly investigate the Duma affair – Chief Secretary Isaac Lupari.

Now it is time for another instalment.

It is alleged that one of Duma’s accomplices in the K50 million fraud was Phillip Eludeme and PNG Blogs has suggested that Eludeme received K16.5 million for his role in facilitating the scam.

Eludeme is the Chairman of the Central Supply and Tender Board, arguably one of the country’s most important national bodies. It can either be a guard against corruption if run properly, or a mechanism for corruption if abused.

So who would you appoint to Chair such an important Board, which safeguards hundreds of millions in public money? Probably not one of the leading stars in the National Provident Fund Commission of Inquiry, who is alleged to have supplied a K100,000 bribe to the Lands Minister. But this is exactly what happened.

The scandal centred on, Waim No.92, which on paper was owned by Phillip Mamando and Philip Eludeme. The commission argued both were proxy shareholders for none other than Jimmy Maladina, Chairman of the National Provident Fund. The conspiracy, the Commission of Inquiry argued was to acquire a plot of land in Waigani for a discounted price and then sell it on to the NPF at an inflated sum. 

The Commission claims Eludeme was a key fixer in this corrupt deal, ‘prior to the Land Board hearing, Mr Eludeme had approached [Lands] Minister Seravo seeking favourable consideration for Waim No. 92’s application and, at Mr Seravo’s request, had performed, free of charge, accountancy services for Minister Seravo valued at K100,000’. The Commission adds: ‘The records of the Land Board indicate it notified Waim No. 92 that it had been recommended as the successful applicant and on September 28, 1998, Waim No. 92 received notice that a corruptly reduced purchase price of K1,724,726.10 was payable before title would issue, with annual rent to be K17,000 (instead of the legally correct amounts of K2,866,000 and K143,000 respectively)’.

Interestingly, Eludeme’s company at the centre of the NPF Commission of Inquiry, registered office at the time was Ram Business Consultants – Eludeme’s personal registered address was the same company.

Ram Business Consultants was another player at the centre of the NPF inquiry. In addition to this its principal, Rex Paki, was also one of the initial shareholders in the Paga Hill Estate.

National Court records indicate William Duma was involved in a land-grab that will greatly benefit from this proposed ‘tourism city’ at Paga Hill. He has also acted as Director in Malaga No.7 Limited, which is owned by Paga Hill Development Company.

In addition to the NPF scandal, Eludeme also featured in the SABL Commission of Inquiry, owing to his involvement in a company at the centre of the Bewani oil palm and logging scam – a major fraud involving 140,000 hectares of customary land, discussed in detail on PNG Echo blog.

According to the SABL CoI, one of the companies involved in the scam, Bewani Palms Management Limited was owned by Philip Eludeme and he was also a director, alongside Charles Litau, John Wuni and Bob Namah.

It appears birds of a feather flock together. 

Has PM O’Neill appointed a fraudster to investigate the alleged Duma Fraud?

February 4, 2017 7 comments
lupari

Chief Sec Issac Lupari was condemned by the Commission of Inquiry into the Department of Finance for being the mastermind of a multimillion dollar fraud

This week we were reminded why PNG needs an impartial, independent and well-resourced corruption fighting force – as Minister William Duma attempted to deflect attention from evidence pointing to his involvement in two major land grabs, worth tens, if not, hundreds of millions.

Prime Minister O’Neill assures us, the matter will be thoroughly investigated by Police Commissioner, Gary Baki – a close ally of the PM – and wait for it, his Chief Secretary Issac Lupari.

We can reveal that the Chief Secretary Issac Lupari was condemned by the Commission of Inquiry into the Department of Finance for being the mastermind of a multimillion dollar fraud.

The Commission of Inquiry observed:

‘Mr. Issaac Lupari sued the State for breach of four separate contracts that were entered into as Secretary for the Departments of Finance, Defence, DPM and Transport in that order. He claimed that he had been unlawfully terminated from all those positions after serving short stints in each and claimed the balance of all pay and entitlements for the unexpired period of all four contracts’.

The Commission observes:

‘It will be clear from the evidence gathered so far that Mr. Lupari never suffered any loss of pay and entitlements, and was adequately remunerated by the State for the whole time that he claimed for and beyond’.

In summary the Commission of Inquiry found:

  • In 1997 Lupari was appointed Finance Secretary by Prime Minister Bill Skate, the mentor to our current PM, Mr O’Neill.
  • On 15 January 1998 he was sacked by the Skate government, but as fortune has it, the very same day he got the job of Defense Secretary.
  • On 17 March 2000 he was made Secretary for the Department of Personnel Management by the Morauta government, with a contracted end date of 29th of June 2000.
  • On the day his contract ended, Lupari was made Transport Secretary.
  • Nevertheless, Lupari claimed he was unlawfully dismissed as Secretary for the Department of Personnel Management.
  • His legal team was … Paul Paraka lawyers.
  • The Attorney General and Solicitor General settled the claim for a cool K1 million, which was paid by the Department of Finance on the 17 September 2004 by cheque No. 790468.
  • A further K2.7 million in settlements were agreed with Lupari, after he claimed he was also dismissed as Transport, Finance and Defense Secretary– the Commission was unable to find evidence of whether this money was paid.

The Commission concluded:

‘Mr. Isaac Lupari knew full well that his claims amounted to triple and quadruple dipping. Yet he went ahead and instructed his lawyers to file claims against the State in the National Court’.

‘Mr. Lupari was not entitled to the K3,703,461.31, either legally or morally. Paul Paraka lawyers engaged in deceptive conduct when filing Writs in the order they did’.

‘Paul Paraka Lawyers did not submit quantum submissions. Purported quantum submissions later produced to the Commission were fabricated after the Col summoned same from Mr. Guguna Garo of Paul Paraka Lawyers’.

‘Paul Paraka lawyers were paid K200,000.00 for each matter totaling K800,000 for doing a minimal amount of work. That work consisted only of drafting the four Writs of Summons. There were no appearances in Court and no protracted negotiations before agreement was reached to settle the four matters out of Court’.

Read the Commission report on Issac Lupari  (220KB)

So this is the honourable fellow who will now investigate the Duma allegations. The people of PNG will be forgiven for not holding much confidence in the process.

Which serves as a timely reminder, what happened to the Interim Office for Anti-Corruption which was to be headed by Judge Graham Ellis?

O’Neill disposed of Taskforce Sweep, and then aborted its replacement, seemingly in the dead of night when no one was looking.

If Lupari is now the moral barometer of anti-corruption investigations in PNG, god save us all.

Its time for O’Neill to implement the ICAC he promised, so an independent judicial authority, can scrutinize corruption.