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Papua New Guinea land activist vows to battle for his people from Britain

August 9, 2017 2 comments

Leader of the Paga Hill seafront community Joe Moses, pictured in London, July 11, 2017. Thomson Reuters Foundation/Nicky Milne

Ruairi Casey for the Thomson Reuters Foundation

A land activist from Papua New Guinea at loggerheads with the police and developers in his home country has vowed to continue the fight for his community from Britain.

Joe Moses has accused PNG authorities of treating people unfairly in demolishing the Paga Hill seafront settlement in the capital Port Moresby to make way for a luxury hotel and apartments development and a ring road.

The government granted a lease to the Paga Hill Development Company (PHDC), a joint venture between local and international investors, to build on Paga Hill.

A Supreme Court ruling said the reclaimed seafront area was not included in the original lease but Moses said, unknown to the community, this land was leased by the state to developers during legal proceedings.

Moses, who features in a newly released documentary “The Opposition: Paga Hill“, said the settlement, dating back about 70 years, was home to about 2,000 people who had customary rights to the land and should have been allowed to stay.

“The whole community was a vibrant community,” Moses told the Thomson Reuters Foundation in London where he is seeking asylum while his wife and children remain in Port Moresby.

“I just miss home every day, every minute of the day when I’m here.”

POLICE DENY INTIMIDATION

Moses, a former university worker, said his clash with authorities dated back to May 2012 when he led a fight in the courts to stop development.

In October that year, he said a policeman arrived at his home seeking his arrest without charge and shortly afterwards he went into hiding in an army barracks with his family.

He stayed in Port Moresby but his concerns for his safety grew in 2014 when armed police forced out the remaining residents from the Paga Hill settlement and their homes were bulldozed.

“I realized they were still after me,” said Moses. “I was not free to go to public places, public gatherings; all my communications were tapped.”

The police, however, accused Moses of discharging a gun, resisting arrest and causing civil unrest.

In a statement to the Thomson Reuters Foundation, a police spokesman denied allegations of intimidation and accused Moses of seeking fame from an international audience.

“There is no threat whatsoever on Joe Moses. He can come home anytime he wants to. There has been and will be no intimidation,” the spokesman said in an email.

Moses said with the assistance of international NGOs he was able to secure a flight from Papua New Guinea to Panama in November 2016 and then onto Britain.

“The most important thing is I need to get my family out … we need to be safe somewhere while waiting for the situation to change,” he said.

Moses said he hoped he will be able to return to Papua New Guinea someday to continue his fight to get fair compensation for his community, many of whom are still living in tents on a relocation site without suitable water and sewerage facilities.

A PHDC statement said the company was “proud of having achieved the first privately-funded squatter settlement relocation in PNG” with the site handed over in 2014.

“The fact that the relocation site was officially handed over almost three years ago, as well as that many settlers have since on-sold and moved on, PHDC can in no way be reasonably held accountable for the current state of the relocation site, or for those that PHDC relocated,” PHDC’s statement said.

Moses, however, vowed to press on with his campaign.

“I know that I will face consequences, but someone has to do something … If it means life and death I will have to do this – because someone has to do something to help the people,” he said.

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Legal battles over, controversial doco The Opposition finally gets home debut

May 1, 2017 1 comment

It began as a student film project but soon morphed into something much larger – including an unexpected and bruising legal battle.

Karl Quinn | Sydney Morning Herald | 29 April 2017

Dame Carol Kidu didn’t recognise the young Australian woman who said she wanted to make a film about her life in New Guinean politics in 2012, even though they’d shared breakfast a few years before that. But she has no trouble remembering Hollie Fifer now. It’s amazing how an ugly legal battle can jog the memory. 

Fifer, who is 28, first met Dame Carol with her mother Dimity, a former CEO of Australian Volunteers International, in 2008. By the time the then-AFTRS student pitched her film idea, PNG was in political turmoil, with Michael Somare and Peter O’Neill both claiming to be the legitimate prime minister of the country. Dame Carol broke the deadlock by stepping away from Somare’s party to become leader of a one-woman opposition. 

Hollie Fifer, director of the controversial PNG documentary The Opposition, fought a long battle to screen the film. Photo: Arsineh Houspian

To Fifer, “it seemed like a great story”, even if she also suspected “I’d arrived too late” to record it at its best.

But as they were filming an interview in Port Moresby in May 2012, Dame Carol received a phone call: a shanty settlement on Paga Hill, near the centre of town, was being bulldozed, its 3000 inhabitants were about to be scattered to the winds, and the developer responsible was Australian.

In that moment, a different film was born.

“She said, ‘Do you want to come’, and I didn’t know what to expect but I said ‘yeah’,” Fifer says. “Then this entire scene happened that completely changed everything.”

As Dame Carol strode about Paga Hill trying to convince police to stop what was going on, Fifer kept her camera rolling. Here was a real-life David v Goliath story, with the country’s only female parliamentarian as the unlikely hero of the people. Or so it seemed.

Over the course of the film’s evolution, Dame Carol’s role changed massively. She left the Parliament. She set up a consultancy, and was hired by the Paga Hill Development Corporation, on a contract of $178,000 for three months’ work. And she became determined to prevent Fifer’s footage of her from ever seeing the light of day.

Dame Carol wasn’t the main character in Fifer’s film, but she was a key player, featuring in about 20 minutes of it. In March 2016, she launched legal action in the Supreme Court of NSW demanding those scenes be redacted. She claimed she had never consented to being in such a documentary. The release she signed was merely for a student film, not for something that might be shown commercially. She claimed the film misrepresented her. 

Dame Carol Kidu argues the point with police at Paga Hill in May 2012, as seen in The Opposition. Photo: supplied

Fifer’s film was set to debut at the prestigious Hot Docs festival in Toronto in May 2016. On April 22, Dame Carol was granted a temporary injunction against the inclusion of the footage in which she appeared.

Fifer had a week and a half to recut her film. Where Dame Carol had been, the screen was now black, with a narration read by actress Sarah Snook explaining what was happening, and why. But the day before she was due to fly to Toronto, Fifer was back in court, being ordered to make more tweaks.

PNG land rights activist Joseph Moses (foreground) in a scene from the film. Photo: Supplied

“The hard drive was still warm when I took it to the airport the next morning,” she says.

“It was literally a hot doc. We hadn’t even seen it by the time we screened it. My producer, Rebecca Barry, and I were just looking at each other thinking, ‘I hope this works’.”

Dame Carol Kidu went from opposing the demolition of houses at Paga Hill to working as a consultant for the developer. Photo: Melissa Adams

It did, and in June, the court ruled against Dame Carol’s application for permanent redaction of the footage in which she appeared.

Now, finally, The Opposition is to have its full Australian premiere, on the opening night of the Human Rights Arts and Film Festival.

Fifer (centre) leaves the Sydney Law Courts on April 14, 2016. She had little to smile about a week later as Dame Carol won a temporary injunction against her film. Photo: James Alcock

It’s been a long and bruising journey for all parties. Joe Moses, the Paga Hill activist who is the real hero of Fifer’s movie, spent a couple of years in hiding but is now in the UK, studying international human rights law. Many of the former residents of Paga Hill are homeless in downtown Port Moresby; those who took the inducements to move are still living in the tents they were told would be temporary. There are 200 of them at a place called Six Mile, says Fifer, under rotting canvas, with one tap and a toilet that doesn’t work properly.

As for Fifer herself, she says after five years on this one she’s in no hurry to race into the next project.

“I don’t want to just launch into another one because I want to make a film – I want to launch into it knowing this is something that needs to exist.”

She wants to put the difficult journey of her film to good use, and is looking for ways to share what she learnt with other documentary makers, if only so they don’t have to go through the same things.

“I feel like I’ve had a bit of an experience with this film. I don’t feel it’s right for me to silo that and move on to the next film, to go, ‘Oh that’s good that I learnt all that, but it’s just for me’.”

It would be fair to say she’s in a cooling-off period, but she insists she hasn’t gone cold.

“I’m up for a good challenge,” she says, smiling wryly. “But maybe a little less of a challenge.”

The Opposition is opening night film at the Human Rights Arts and Film Festival, which runs May 4-18 in Melbourne, May 23-27 in Sydney, May 29-31 in Canberra, June 1-3 in June and June 1 in Perth and June 2 in Hobart. Details: hraff.org.au

Stanley Liria to contest Peter O’Neill’s seat – Is there more than meets the eye?

April 24, 2017 1 comment

The Post-Courier has reported that Port Moresby Lawyer, Stanley Liria, ‘has put up his hands to challenge Prime Minister Peter O’Neill for the Ialibu-Pangia seat’.

Stanley Liria

Liria told the Post-Courier:

‘I can no longer stand by and allow the unprecedented levels of mismanagement continue, both within Ialibu-Pangia and across Papua New Guinea as a whole’.

These are strong words, directed at a man, Peter O’Neill, who in fact has championed Stanley Liria’s career, first as a lawyer, then as a real-estate developer.

Is this simply the case of ‘biting the hand that feeds’, or is there more to this political challenge than meets the eye?

Lets review some key facts:

  • Liria is a close wantok of the Prime Minister.
  • Peter O’Neill helped champion Liria’s legal career, and even launched Liria’s book encouraging MPs to buy it (see ‘additional evidence’ below).
  • Liria is the sole shareholder of Paga Hill Development Company (PNG) Limited (PHDC), a controversial real-estate developer behind the Paga Hill Estate.

 

In October 2012, there was an international media storm when it was discovered key executives in the project, had been slammed in 3 Commission of Inquiries, 4 Public Accounts Committee inquiries and 2 Auditor General Reports. Rather than investigate PHDC for ‘corrupt dealings’ (to quote the Public Accounts Committee), in late October 2012 the Prime Minister declared Paga Hill Estate a project of national significance (see below).

  • Since 2012 the O’Neill government has agreed to act as a formal partner in the Paga Hill Estate project, offering any investor significant tax breaks.
  • Prime Minister O’Neill features in the investor brochure issued by Liria’s company this year. In it O’Neill declares the Paga Hill Estate a ‘key project site’ for APEC 2018.  

So how can Liria publicly claim to oppose mismanagement by the O’Neill government, when arguably his real-estate development company is a prime beneficiary of this mismanagement.

Are we getting the full picture?

One theory is that Liria is, in fact, an ally of Prime Minister O’Neill, and is being sent into the Ialibu-Pangia electorate to split the opposition vote. If he can successfully do this, it will ease O’Neill’s return to the throne.

An alternative factual scenario, which is being put forward by PNG Blogs, is that Liria has turned against his former friend and benefactor – and joining forces with a number of senior politicians who want to steal the O’Neill throne.

There is evidence to support this hypothesis:

  • Stanley Liria is close friends and has business links with Governor William Powi, who wants to topple the PM.
  • Liria is the long-time front-man for the Icelandic-Australian businessman Gudmundur Fridriksson, a man whose businesses have been censured for corruption and other illegal activities in 1 Commission of Inquiry, 4 Public Accounts Committee inquiries and 2 Auditor General reports.
  • Peter O’Neill’s close friend and ally, Minister Justin Tkatchenko has accused Fridriksson and PHDC of bankrolling a rival candidate in his seat of Moresby South, to the tune of K1 million. The rivalry between Tkatchenko and Fridriksson goes back to the Bill Skate days, when both were foreign businessmen competing for the profitable affections of Mr Skate.
  • Tkatchenko has lobbied for a Commission of Inquiry into the Paga Hill Estate, which if O’Neill enacted could lead to Fridriksson and Liria’s downfall.
  • William Duma is a hidden partner in Paga Hill Estate.

So there are two hypotheses:

  1. Stanley Liria remains a close ally of Peter O’Neill, who has benefited from the PM’s support, and in repayment will help divide the opposition vote, as a fake rival.
  2. Liria has split from O’Neill, and believes his own business interests, and those of his close associates, will be better served by forming a rival coalition that can take the Prime Ministership from O’Neill.

Additional evidence

O’Neill vouches for new law book 

Post-Courier, 12 January 2005, page 2
A LOT of parliamentarians do not know much about Papua New Guinea law despite being the country’s lawmakers, Opposition Leader Peter O Neill said yesterday.
Praising Southern Highlands lawyer and author Stanley Liria for writing a book titled A Law Awareness for Papua New Guinea – Our Guide to The Rule of Law, Mr O Neill said he would recommend to his parliament colleagues that they buy the newly published book.
He said the book would help MPs understand the basics of PNG law, which was important as most parliamentarians passed laws without having a sound knowledge of the legal system.
I will try to see if I can get some members of Parliament, as I said many of us don t come from a legal background, we pass laws on the floor of Parliament that we don t sometimes understand,  Mr O Neill said.
There is no real explanation before the bills get passed.
A book of this nature will assist us (MPs) in doing so, we will certainly write to each member and see if they are interested in trying to get this book (in order) to understand the workings of the law and the judicial system of the country.
Talking about his first book that took five years to put together, Mr Liria said the title was written in simple English and should attract readers from all walks of life.
He said the book should dispel the perception that only lawyers and law enforcement officers should know about law and would strive to ensure its selling price is kept to a minimum to attract a wide readership.
Mr Liria said the 94-page book would cost between K25 and K30 and people wishing to buy a copy or place orders could contact him on mobile 684 8273 or e-mail crossrds@hotmail.com

Dame Carol Kidu and the Paga Hill documentary

April 4, 2016 4 comments

Last week numerous articles appeared in the Australian and PNG press on Carol Kidu’s legal action against filmmaker, Hollie Fifer.

We are informed Kidu is furious at Fifer for a feature length documentary – The Opposition – which she made on the brutal series of demolitions at Paga Hill and the illegal land transactions underpinning this human rights abuse.

Kidu has also made serious accusations against the central protagonist in this film, Port Moresby human rights advocate Joe Moses.

Working with local communities, the national museum and other stakeholders, for the past five years Moses has tried to save Port Moresby’s historic Paga Hill from the developer’s knife through the Paga Heritage Foundation.

For his efforts Moses has suffered police harassment, character assassinations and anonymous death threats.

It is unclear who is behind this campaign of intimidation. However, the movement led by Moses has annoyed a number of powerful figures in Port Moresby’s expatriate elite, and their political allies in government.

At the heart of this struggle is Icelandic-Australian businessman Gudmundur Fridriksson. Based out of his sizable home in Cairns, Fridriksson has been at the centre of numerous corruption scandals uncovered by the Auditor General, Public Accounts Committee and the Commission of Inquiry into the Department of Finance.

gummi mansion

Fridriksson’ Queensland mansion.

Fridriksson is also the CEO of the Paga Hill Development Company (PHDC), which has been working with Chinese investors to erect a luxury development at Paga Hill. Despite the efforts of Joe Moses and other conservationists, residents’ homes, a school, a church, and historic relics were destroyed in a series of demolition exercises between 2012-2014. PHDC has only acknowledged involvement in the first demolition.

Gudmundur Fridriksson, PHDC’s Chinese investors and NCDC Governor Powes Parkop

Gudmundur Fridriksson, PHDC’s Chinese investors and NCDC Governor Powes Parkop

When this issue originally erupted on the national stage four years ago it was Carol Kidu who became the figurehead of the struggle to save Paga Hill from PHDC. She was appalled that an area once reserved as a national park would be entrusted to someone slammed in numerous corruption inquiries. Kidu rallied behind Joe Moses and became the political face of the campaign to save Paga Hill.

This is what she wrote in the Post-Courier during 2012:

‘the media have continually portrayed me as an emotional woman, protecting settlers, and anti-development. Yes I am emotional about the blatant corruption, greed and land theft in “modern” PNG and I am emotional when I personally witness gross abuse of human rights’.

She continued:

‘there was no tender process for the land and the company owes the State of Papua New Guinea millions of kina in unpaid land tax. They have paid nothing for this land and their so called relocation scheme [of existing residents] was laughable’.

A more detailed criticism of the company was provided in a press statement released by Kidu, where she details the flagrant violations of the Land Act 1996 committed by PHDC, all of which was tabled to parliament in 2012.

Police Pointing Guns

Dame Carol Kidu is escorted from Paga Hill by police in May 2012

Yet no apparent attempt was made by the O’Neill government to investigate. To the contrary, the government has give the developer tax breaks and offered its full support for the luxury real estate development.

Behind Gudmundur Fridriksson and PHDC stand some powerful business figures. One PHDC shareholder, is Michael Nali. A former Deputy Prime Minister, Nali was the first to sponsor the Paga Hill Estate as one of “national significance” when Tourism Minister. He then acquired a stake in the company, when he lost office.

Nali remains a major Southern Highlands powerbroker, who is a close business partner of Prime Minister Peter O’Neill.

Another important player is PHDC’s lawyer, Stanley Liria, who now holds a majority stake in PHDC which he evidently acquired from Fridriksson. Liria is known to have ties with the Prime Minister, and the Southern Highlands Governor, William Powi.

There is no evidence on the public record Prime Minister O’Neill or other politicians connected with PHDC have broken the law. But clearly the company’s local collaborators enjoy access to some the most influential political networks in the country.

Despite the controversy over the project in 2012, PHDC survived the initial public outcry. Then in 2013 there was another major twist.

Much to the surprise of those trying to save Paga Hill, Kidu announced she was now working under contract with PHDC, after she was personally approached by Gudmundur Fridriksson, and offered a consultancy deal.

The contract with PHDC is facilitated through a company fully owned by Kidu, C K Consultancy Limited.

Entity_Extract-CK_CONSULTANCY_LIMITED-1-850281

Entity_Extract-CK_CONSULTANCY_LIMITED-1-850282

This is not the first time Kidu has angered friends and colleagues fighting against companies involved in serious human rights abuses.

Take the example of Australian miner, Bougainville Copper Limited, who had been implicated in atrocities committed on Bougainville by government security forces.

In a bid to clean its public image, BCL appointed Kidu non-executive Director. For this role Kidu was paid K150,000 in 2014, and K135,000 in 2015.

Kidu Director BCL

Kidu has also worked for Canadian miner, Barrick Gold, after it was discovered the company’s security forces at its Porgera mine were involved in rapes and gang rapes against local women. In a bid to avoid a costly legal case and potentially sizable court awarded damages, Barrick Gold successfully reached out of court agreements with victims.

Most of the victims were evidently given less than USD 6,000 in compensation, and offered counselling services.

The Barrick package was heavily criticised in a 129-page report released by legal experts at the Columbia and Harvard law school, who referred to it as ‘deeply flawed’. One of the lead authors of the report claims:

‘These are some of the most vicious assaults I have ever investigated. The women and local communities had to struggle for years just to get the company to admit what happened. They had been suffering for far too long, and deserved much more’.

Much to the surprise of many in the human rights community, it was Carol Kidu who rallied behind Barrick Gold, and agreed to oversee their ‘deeply flawed’ remediation process. She even defended the company when complaints were lodged with the UN High Commissioner for Human Rights.

Porgera Letter Kidu

There is nothing illegal about working for, or providing services to, foreign companies implicated in rapes, killings and home demolitions, that clearly comes down to an individual’s moral code. However, clearly there are ethical dilemmas involved, especially for those who proclaim to uphold the highest social standards.

Peter O’Neill recently claimed that many retired politicians leave parliament destitute, which might help explain Kidu’s consultancy contracts with companies implicated in serious human rights abuses.

However, according to Queensland property records Dame Kidu purchased a home at the Machans Beach on 19 April 2011, for approximately K822,368. The property is a few streets away from a second home registered in the name od Dame Kidu’s daughter, which was purchased for approximately K690,000 on 10 June 2009.

Machans Beach is a popular holiday spot for those seeking tranquillity and unspoilt ocean

Machans Beach is a popular holiday spot for those seeking tranquillity and unspoilt ocean 

If these property records are accurate, it would appear that these decisions cannot have been motivated by matters of economic survival.

We live in a free country. Kidu is welcome to do what she wants, make money how ever she wants, and work with whoever she wants, no matter what those foreign companies have done.

But why is she attacking and endangering the life of human rights defenders, she once supported?

Although no doubt unintentional, since Kidu went to the press, those close to him report report Joe Moses’ life has been put in danger by angry supporters of the Dame. He is now scared to walk the streets.

In addition to this a filmmaker who has captured one of Papua New Guinea’s most inspiring stories, is facing litigation in the NSW Supreme Court.

It has not been a good week for Papua New Guinea’s human rights community.

What hope do human rights defenders like Joe Moses have when they are under assault from PNG’s most powerful and influential political figures?

Can a little person ever truly stand up to a revered politician and the expatriate business elite? And if they do what will it cost them?

Ask Joe Moses, he is paying the price.

Displaced Residents and Customary LOs Slam Paga Hill Development Company

March 25, 2015 Leave a comment
gummi mansion

While displaced PNG citizens sleep in tents without promised services like water and electricity, PHDC’s foreign CEO rests in the comfort of his Australian mansion

Over the last fifteen years the Paga Hill Development Company (PHDC) and its CEO Gudmundur Fridriksson have hit the news for all the wrong reasons. Slammed by the Public Accounts Committee for acquiring a state lease over Paga Hill through ‘corrupt dealings’, condemned by the Auditor General for illegally seizing money from deceased estates, and rebuked by Sean Dorney for the embarrassing Destination Papua New Guinea saga that is etched in public service folklore.

But we were told, this time at Paga Hill it would be different, Paga Hill Development Company would relocate National Housing Corporation residents from Paga Hill to 6-mile, where they would join with customary landowners to produce a model community. On their website, PHDC boasts, ‘the master plan incorporates a shared 1,000m2 community centre, communal ablution, shower and kitchen facilities should households require them, along with market gardens, market stalls, along with sports grounds. In addition, many household plots will back onto common open/green space areas for play and gathering. Together, these elements foster a sense of community, creating opportunities for interaction and strengthening of community ties’.

But like Destination Papua New Guinea, the grand promises are failing to materialise. EMTV reports new allegations by customary landowner leader Sir Peter Bal that PHDC’s earthworks at 6-mile brought about a major landslide that has damaged properties and gardens. They also claim PHDC has failed to provide basic services to National Housing Corporation residents displaced from Paga Hill.

Once again the government, and the National Housing Corporation, has left hard-working Papua New Guinea citizens exposed to a company slammed as a foreign speculator by the public accounts committee.

Australia-PNG commercial alliance brutalises community defending National Laws

November 5, 2014 Leave a comment

On 1 July 2014, the Supreme Court overturned a decision by the National Court that granted permission to the Paga Hill Development Company (PHDC) to evict residents of the historic Paga Hill community. The Supreme Court decided that the residents lived on reclaimed land outside PHDC’s lease, and were therefore exempt from the National Court’s eviction order.

While the case was before the courts, the reclaimed land at the centre of this proceeding, was registered and leased by the government to Audayap No.5 Limited, a subsidiary of PHDC. The use of a subsidiary concealed the real owner in the gazettal notices, which would have tipped off Paga Hill’s lawyers.

Then on the 22nd of July, without court sanction, the NCD and the RPNGC, demolished homes on the reclaimed land, only weeks after the residents won their Supreme Court battle.

With help from the late Rtd Judge Mark Sevua, the community launched contempt proceeds on the 6th of October against the Australian CEO of PHDC, Gudmundur Fridrksson (PHDC), and the Australian run contractor Curtain Bros Ltd. Also cited in the contempt proceedings is Governor Powes Parkop, and NCD Beat Unit Senior Constable, Gene Punai, who has been overseeing the harassment of community leaders.

Paga Hill Contempt of Court

Just over a week after the contempt proceedings were launched, the RPNGC goon squad arrived at Paga Hill. They demolished the remaining homes, destroyed the historic church, and burnt the pre-school to the ground. The people have nothing now, no shelter, no place for their children to learn, no place to workship.

10 October Demolition 2014 2

This is raw power at work – its an Australian led commercial alliance, whose interests are being protected by police and the NCDC. And at the head of this Alliance is Gudmundur Fridriksson who has been slammed in 4 x Public Account Committee reports, 2 x Auditor General reports, and 1 x Commission of Inquiry.

Enjoying the fruits of their ‘labour’, NCD-Central Police Commander, Assistant Commissioner Jerry Frank (far left) and PHDC CEO Gummi Fridriksson (far right)

Enjoying the fruits of their ‘labour’, NCD-Central Police Commander, Assistant Commissioner Jerry Frank (far left) and PHDC CEO Gummi Fridriksson (far right)

Save Paga Hill, prosecute the guilty!

Statement of the Charges

Statement of the Charges 2

Paga Hill Development Company CEO Gudmundur Fridriksson implicated in Finance Dept Scandal

November 3, 2014 2 comments

Fridriksson company, CSS Anvil, paid K1.4 million for advising on a fraudulent claim for damages exposed by the Finance Department Commission of Inquiry

In 1997 Lynette Malu claimed K1,094,762.99 from the state, for damages supposedly caused during a police raid. Her husband, Benny Malu, was also a party to the action. They, however, allegedly increased the claim to K4.5 million during 2002, on the advice of consultancy firm CCS Anvil, owned by Paga Hill Development Company CEO, Gudmundur (Gummi) Fridriksson. This conspiracy fell within the terms of reference of the Commission of Inquiry into the Department of Finance.

It all began on 22 September 1990. The Commission of Inquiry into the Department of Finance reports, ‘it is alleged that a faction of Mendi Police Force conducted raids in and around Wabi Sumi and Apote villages at the outskirts of the Kagua Erave Electorate of Southern Highlands Province. The raid was conducted in an attempt to apprehend suspects involved in alleged theft of 100 bags of dried coffee. The consequence of the Police action resulted in a number of plaintiffs allegedly having suffered damages, loss of properties and suffered personal injuries’ (p.268).

There were three separate claims against the state based off this raid. One was led by Yakoa Pape. The second by Benny Baleopa Malu, an individual claim. And the final case was launched by Benny’s wife Lynette Malu.

Then on 17 February 1997 JB Nanei & Co. Lawyers wrote to the Solicitor General proposing to settle the case for K1, 094,762.99 inclusive of interest and costs.

Attached to this case was Benny Malu who had already been awarded damages for K35,008.00 for the same event in 1995. He was double dipping.

In 1998 David Keta Lawyers warned the Solicitor General of the anomalies in the writ submitted by Lynette Malu, noting it was a duplicate of her husband’s original claim. The Commission of Inquiry agreed this was a duplicate claim.

Nevertheless, on 27 November 2002 a ‘Deed of Release was allegedly signed [by the state] in which a consideration of K4.5 million was offered for settlement, which is purportedly inclusive of interests and costs’ (p.271). The Deed of Release was signed by Lynette Malu, and Zacchary Gelu the Solicitor General.

The Commission of Inquiry notes on p.272, that the consideration offered in the signed Deed of Release was ‘K3.4 million more than the initial Quantified Claim of K1,094,762.99 being proposed by the claimants first lawyer, JB Nanei & Co. Lawyers’.

The Commission of Inquiry observes that the claimants’ revised Quantified Claim appears to have been influenced by the claimants’ new lawyers, Nouairi Lawyers & Associates. Benny Malu maintains that the company CCS Anvil oversaw this revised claimed, and the actions of Nouairi Lawyers. CCS Anvil was then owned and run by Gudmundur Fridriksson, along with Sydney businessman George Hallit.

Malu claims that his wife had initially claimed K900,000 – CCS Anvil assisted them to revise this amount upwards to the grand total of K4.5 million.

On 15 April 2003 the Attorney General, Francis Damen, wrote to the Secretary for the Department of Finance advising them to stop payment, given the serious anomalies.

Strangely, just a month later on 20 May 2003 Mr Damen again wrote to the Secretary rescinding his previous letter, and advised settlement. In the end K3,880,000 was paid out to Lynette Malu.

Benny Malu alleges on oath his wife’s claim was overseen by Jack Nouairi in concert with CCS Anvil. Nouairi failed to give evidence to the Commission of Inquiry because ‘he was not feeling well’ (p.275).

According to Benny Malu CCS Anvil was paid K1.4, but had claimed K1.85 million for services rendered.

The Commission of Inquiry concluded the ‘matter appears to be a fraud’, and should therefore ‘be referred to Police for further investigations’ (p.276).

Download the full Commission of Inquiry Report