Has Peter O'Neill Benefited From The NPF Tower Fraud?

Re-posted, PNG Exposed Blog

As new Finance and Treasury Minister Peter O’Neill settles into his new role, Papua New Guineans should be asking why this man has never been prosecuted for his role in the NPF tower fraud and why the Prime Minister thinks it a good idea to have an accused fraudster in charge of our Nation’s finances.

This is what the Post Courier reported on 22 Nov 2002:

FORMER businessman and now government minister Peter O’Neill “definitely benefited from proceeds of the NPF Tower Fraud,’’ the final report of the NPF Commission of Inquiry states.

The report says the commission made a thorough study of Port Moresby First Real Estate’s accounts and traced all monies paid in and out on account of Mr O’Neill.

“This conclusively showed that Mr O’Neill had definitely benefitted from the proceeds of the NPF Tower Fraud,” it said.

“It also shows that despite his denials, Mr O’Neill is the beneficial owner of Port Moresby First Real Estate.”

The report says it is clear that there is a relationship between Jimmy Maladina and Mr O’Neill whereby they have benefitted jointly from the NPF Tower Fraud.

The commission traced payments made from Carter Newell lawyers to Port Moresby First national Real Estate’s interest bearing deposit account with Nambawan Finance Limited.

It highlighted an amount of K500,000 from Carter Newell on January 18, 1999, another K100,000 deposited on February 25, 1999 and “ when Mr Maladina’s K300,000 of NPF Tower fraud money was added on 16th March 1999, both of these deposits became a single IBD — Deposit No. C08541 of K914,616.00”.

The report states the various amount of NPF Tower fraud money known to have been transferred from the No.1 Trust account to the No.2 Trust Account are listed as well as amounts of the Tower fraud money paid directly into the No.2 Trust Account and amounts paid in from the Nambawan finance deposit (see 12.4.1).

Each payment was traced by the commission, which determined which amounts were credited as “off-book” and which amounts were credited to a numbered ledger.

The results were that K100,000 cheque No 266929 transferred form No.1 Trust Account to No.2 Trust Account on May 14, 1999 (on the same day cheque No 263729 was drawn to cash which was cashed and collected by one Dick Yanda).

In its concluding comments on the second acceleration claim, the report states:

“The investigation into the spurious second acceleration payment has clearly demonstrated that it involved a carefully planned fraud on the NPF, instigated and carried out by Mr Maladina, with the active involvement and support of Mr Herman Leahy. Mr Leahy’s wife Ms Angelina Sariman played a supporting role as a principal offender. Mr Ken Yapane was also involved, at least as an accessory and receiver of fraudulently obtained money. The two managers of Kumagai Gumi were reluctant participants and are also principal offenders. Mr Fabila had knowledge of what was occurring. He failed to stop it and signed documents which helped to perpetrate the fraud.

“The tracing of the NPF money, paid as six progress payments by Kumagai Gumi, plus the K150,000 personal commission for Mr Maladina shows quite clearly who the beneficiaries of most of the Tower fraud monies were.

“These included Mr Maladina and his wife and companies, Mr Leahy and his wife and companies and Mr Ken Yapane.

“Substantial amounts were paid into PMFNRE accounts and substantial parts of these monies were paid for the benefit of Mr Peter O’Neill.”

This finding was vigorously denied by Mr O’Neill, who argued that although it appears on paper that payments for his benefit came from ledgers containing NPF Tower fraud money, he in fact had other monies of his own in other PMFNRE accounts, which were the true and “innocent” source of monies paid out to himself, his companies and his family company.

“To assess Mr O’Neill’s claim the commission made a thorough study of PMFNRE’s accounts and traced all monies paid in and out on account of Mr O’Neill. This conclusively showed that Mr O’Neill had definitely benefitted from the proceeds of the NPF Tower fraud. It also showed that, despite his denials, Mr O’Neill is the beneficial owner of PMFNRE and that Messrs Sullivan and Awela are his nominee shareholders.

“It is quite clear that there is a relationship between Mr Maladina and Mr O’Neill whereby they have benefitted jointly from the NPF Tower fraud.”

Among the many findings made against Mr O’Neill, the commission has found that Mr O’Neill had concealed his interest in Nama Coffee Exports Ltd, which had borrowed K4 million from PNGBC while Mr O’Neill was executive director of Finance Pacific which was owned/controlled by PNGBC.

The commission also found that a payment of cheque number 263604 for K100,000 was made by Port Moresby First Real Estate for and on behalf of Mr Peter O’Neill to secure his 25 per cent shareholding, held in the name of a Mr Jack Awela, in Nama Coffee Exports Limited.

The commission recommends that Mr O’Neill be referred to the Ombudsman Commission:

(a) to consider whether he has breached the Leadership Code by receiving the benefit of money derived from the NPF Tower fraud and by concealing his interest in Nama Coffee Exports Ltd; and

(b) consider whether Mr O’Neill had breached the Leadership Code when executive director of Finance Pacific when PNGBC extended loan facilities to Nama Coffee Exports Ltd in which Mr O’Neill had an undisclosed interest .

The report also highlights the use of NPF Tower fraud money totalling K960,000 for the purchase by Bluehaven No 42, of the Manamatana Flats.

The commission has found that Bluehaven 42 was owned by Mr O’Neill (with shares being held on trust for him) and that on March 8, 2000, it was owned by LBJ Investments — a company set up for Mr O’Neill’s children.

The balance of the purchase price for the Manamatana Flats was paid out of PMFNRE in April, 2000, at which time Bluehaven No 42 was owned by Mr O’Neill’s children’s company, LBJ Investments.

“After the Commission of Inquiry was established on April, 11, 2000, attempts were made to hide the source of the funding by fabricating an agreement between Global Halshaw and Property and Investment Consultants Ltd (Mr Maurice Sullivan) shown as dated June 24, 1999, lending funds to purchase investment properties in Port Moresby. This document is clearly false and ignores the fact that Property and Investment Consultants was not a shareholder in Bluehaven No 42.”

The report states it is clear that Mr Sullivan, Mr Barker and Mr O’Neill have been involved in this cover up and that Ken Barker and Mr O’Neill committed perjury.

The report states that:

(a) At the time of the purchase by Bluehaven of the Manamatana flats, Bluehaven was beneficially owned by Mr O’Neill.

(b) K150,000 receipted by receipt No. 70547 used in the purchase was derived from the NPF Tower fraud.

(c) K160,000 of the funds receipted by receipt No. 70546 was derived from Nambawan Finance IBD which included K300,000 derived from the NPF Tower fraud

(d) The K600,000 paid to complete the purchase was derived either from monies fraudulently obtained by Mr Maladina from the sale of the Waigani land or from Niugini Aviation in Hong Kong.

(e) Messrs Maladina, O’Neill, Sullivan and Barker are well aware of the true facts concerning these moneys and this transaction. Each of Mr O’Neill and Mr Sullivan have not given evidence which can be accepted by the Commission.

(f) The evidence of Mr Barker in relation to what occurred with this K600,000 is clearly false and knowingly false.

Although Mr Ken Barker committed the crime of perjury before the commission in relation to what occurred with this K600,000, the commission believes it would be a waste of resources to refer him to the Commissioner for Police as he has departed PNG permanently. He should be referred if he ever returns.

(g) On the October 28,, 2002, the commission directed counsel assisting to refer Mr O’Neill to the Commissioner for Police to investigate whether he should be charged with perjury concerning his evidence on this issue.

Seventeen years is along time, Mr Maladina ! #NPF #PNG pic.twitter.com/22UmbK9ujg

— PNG Insight (@PNG_Insight) May 21, 2015

Here is what the other Maladina brother explained to SBS Dateline how the fraud was conducted. involving his brother and the prime minister of Papua New Guinea. 

Minimum Wage: Have Companies And Businesses Ignored 2014 Increase of K1.00 For Low Income Earners?

 Minimum Wage was raised from K2.20 to K3.20 in 2014. The increase was recommended by Employers Federation and Salary Commission and endorsed by a Parliamentary Working Committee on wages and salaries. Every employer must comply with the parliamentary directive as of 2014.  

There is also little known about employees’ benefits and how those benefits tie in with minimum wages. Unless employees are made aware of this by their employers, there is no reason why employees would get less than recommended minimum wage or salary.

If you are an adult, working fulltime (or Part-time) and know that you are among the minimum wage earners you should make sure that your hourly pay is NOT less than K3.20. Here is a table to help you.

In 2014 the Employers Federation and Salary Commission (EF&SC) conducted a 7-month investigation into wages and salaries of middle (to low) income earners in Papua New Guinea. They made several recommendations. One of the recommendations was to increase the minimum wage from K2.20 to K3.20

The EF&SC (who made the recommendation) or Employers Federation of Papua New Guinea (EFoPNG – who are supposed to inspect and ensure minimum wage is paid to workers) came out trumpeting that the increase must be complied with ‘immediately’ at the time of the announcement. 

Question of ‘compliance’ must be answered clearly. This can be done by government organisations responsible for ensuring workers are paid what they deserved. Right now there is a need to determine if companies have complied with government’s directive. But, who is going to do it?

If the Workers’ Union president is looking for something better to do, here is one thing he can do: call on EFoPNG to do its job. The employers’ federation has 22 inspectors stationed in every province. Have they done what they are supposed to do yet? 

What is the Department of Internal Revenue and Taxation done to make sure the K1.00 increase is paid to the low income earners? Their audit has to show how many minimum wage earners are employed by each company and how much they are paying them. 

Statutory organisations, who are supposed to put the interest of low income earners first, have got to do their jobs and continue to do it right. Companies and businesses who have not complied with the Minimum Wage increase must be reminded to remain true to their workers – pay them accordingly.  

Organisations like the Workers Union, Employers Federation of Papua New Guinea, Employers Federation and Salary Commission, Internal Revenue Commission and Department of Internal Revenue and Taxation MUST do what is right. 

It would be criminal – it is criminal, on both the government organisations and companies, if they failed to enforce the new minimum wage or failed to comply with it. Responsible authorities must follow up and ensure the minimum wage (K3.20) set in 2014 is paid to every eligible earner in the country. 

10 COMPANIES/BUSINESSES WITH MAJORITY OF EMPLOYEES EARNING MINIMUM WAGE: 

1. SECURITY FIRMS

2. LOGGING AND FISHING COMPANIES

3. CHINESE KAI BARS AND RESTAURANTS 

4. RETAIL OUTLETS AND WHOLESALE 

5. CONSTRUCTION AND SUB-CONTRACTORS 

6. PLANTATIONS 

7. NIGHT CLUBS 

8. FARMS

9. FACTORIES 

10. HOTELS

1,000 New Species Found Melanesian island of New Guinea - WFF

A frog with fangs, a blind snake and a round-headed dolphin are among more than 1,000 new species recently found on the incredible Melanesian island of New Guinea, environment group WWF said.

Scientists made the astounding discoveries, which also included a river shark and dozens of butterflies, on New Guinea at a rate of two a week from 1998 to 2008, WWF said in a new report on the island's natural habitat.

"This report shows that New Guinea's forests and rivers are among the richest and most biodiverse in the world," said WWF's Western Melanesia programme representative, Neil Stronach.

New Guinea -- divided between the Indonesian province of Papua in the west and Papua New Guinea to the east -- has one of the world's least spoilt and most stunning ecosystems.

Its rainforests are the third biggest in the world after the Amazon and the Congo, and, while the island covers just 0.5 per cent of the Earth's landmass, it contains up to eight percent of the world's species, according to WWF.

What was previously known about New Guinea's biodiversity was already breathtaking, such as the world's biggest butterfly -- with a 30-centimetre (12-inch) wingspan -- and giant rats that can grow up to a metre long.

Scientists believe that one square kilometre (247 acres) of the island's lowland rainforest may contain as many as 150 bird species, according to WWF.

The 1,060 species confirmed by scientists as new discoveries between 1998 and 2008 are believed to have only scratched the surface of New Guinea's dazzling ecosystems.

"Such is the extent of New Guinea's biodiversity that new discoveries are commonplace even today," WWF said in its report, titled "Final Frontier: Newly Discovered Species of New Guinea".

One of the most notable finds documented in the WWF report was a round-headed and snub-finned dolphin, which swims in protected, shallow coastal waters near rivers and creek mouths.

Discovered in 2005 in Papua New Guinea, it was the first new dolphin species recorded anywhere in the world in three decades, and is now known to also exist in Australia, WWF said.

Another of the 12 mammals found over the decade was an anteater named in honour of British naturalist Sir David Attenborough, Sir David's Long-beaked Echinda or, scientifically, Zaglossus attenboroughi.

One of the 134 frogs discovered was dubbed Litoria sauroni because its striking red and black spotted eyes reminded scientists of the evil character Sauron in the "Lord of the Rings" movies.

Another new frog was notable because of its tiny size -- just one centimetre in length, while one had vampire-like fangs.

Nine snail species, some so colourful as to be almost unrecognisable from the backyard-garden-type variety, were among the 580 new invertebrates discovered.

One of the snails was bright yellow, while another was green and yellow.

Among the other new invertebrates was a brightly coloured apricot crayfish, part of the family of creatures called "yabbies" in Australia and some other parts of the world, which was nine to 12 centimetres long

New fish totalled 71, with a kaleidoscope of colours, including one in the coral reefs of Milne Bay in Papua New Guinea that thrilled scientists with its dazzling blue hue.

WWF said the most extraordinary freshwater discovery was a 2.5-metre-long river shark found in Papua New Guinea that has since also been located in northern Australia.

Of the 43 reptiles discovered, one could claim to be the most innocuous snake in the world -- it was just 12-14 centimetres long, had scales over its eyes so that it could not see, could not bite and had no venom.

But WWF said the excitement of all the new discoveries had been tempered by the fact that, like in the Amazon and Borneo rainforests, human actions were destroying New Guinea's natural habitat at an "alarming rate".

Some of the growing threats it listed were illegal and unsustainable logging, forest conversion for palm oil plantations, mining, road construction and unsustainable fishing.

"These environmental threats are exacerbated by global climate change which is increasing the number of fires within forests and savannas, erosion, and seawater incursion into coastal habitats," WWF said.

Source: AFP 2011

Non-Payment of Tuition Fees | "Anyone who gets in the way of the delivery of free education will be moved aside..."PNG PM.

THE GOVERNMENT IS PAYING K300 SCHOOL FEE PER CHILD AND EXPECTS SCHOOLS TO CONTINUE TILL ACADEMIC YEAR ENDS?

It is good to see PNG government is responding quickly to the news about schools closure. However, there are certain facts and figures we, as stakeholders, need to bear in mind.

1) The government allocated K605 million to fund Tuition Fee Free education policy. With this funding, schools were directed by both education minister and secretary for National Department of Education not to charge any other fees like the project fees.

2) K605 million has been paid in two instalments: first component (K302.5) for terms one and two, and second K302.5 million for terms three and four. This is supposed to be paid with no strings attached.

3) Reports have indicated that only 70% (K211.75 million) of the first component was paid to receiving schools. The remaining 30% (K90.75 million) was now released to schools according to the Post Courier report below. Why is it released now, when some schools have closed early for term one holiday due to lack of funds? Who is the government blaming? Would schools have closed prematurely if the government released the first component in full?

4) Perhaps this is an important question: 'Are we likely to see schools closing before the end of term two?' I think yes because 70% the first component was not enough to take many schools through to the end of term one. Remaining 30% paid recently was just a drop in the ocean to complete term 2, not sufficient for a term. 

5) All in the good name of the government, this K605 million was not enough. With a national school population of 1.9 million students, the government has planned to pay about K300 school fee per child (that was for the whole year) and expected the schools to continue without closure. 

The PM, Education Minister and NDoE secretary can go dancing to the tune of K605 million for free education, but it trickles down to nothing when you have a students' population near 2 million.  

It was clear that the investigation into any allegation of abuse of TFF funds, commissioned  and talked about by the Chief Secretary of Government, would have to be withdrawn as it  was unlikely to fix the problem. It would only uncover the weak areas and threw mud at the government. 

If the government wants to see smooth flow of academic year, it must either double the TFF subsidy or allow for parents to pay half the school fees and project fees.

It is, also, time to stop the Education Minister and his department secretary from meddling with the affairs of provincial education authorities or school board of management. Let the school BoGs, principals and PEAs do their jobs as they have done before the introduction of TFF (free) education policy.

BY ISAAC NICHOLAS

PRIME Minister Peter O’Neill has directed that all outstanding school fee subsidies be made direct to individual schools by this week.

He said to facilitate these payments, K90 million was drawn down last Friday to pay the remainder of tuition fee free funding for the first two terms of the current school year.

Mr O’Neill outlined this plan of action that was being delivered alongside the investigation commissioned by Chief Secretary Sir Manasupe Zurenuoc that was seeking answers to the possibility of misappropriation of school fees.

He said the investigation included where the unaccounted funds had gone, but of greater urgency the commission would provide details of schools that had been cut short of funds so that they could be paid direct by the Government this week.

"The delivery of tuition free education is a cornerstone policy of our Government and we will not let this be interrupted by incompetence or mismanagement," he said.

"We promised the people of this nation that we would get their children into school and this is what we are doing.

"Anyone who gets in the way of the delivery of free education will be moved aside and we will deliver these school fees for our families.

"I have directed that all schools still awaiting their school fee subsidy will receive this money direct from the Government this week. There is no reason for any school not to open for the new school term.

"Education is a right for all children of Papua New Guinea and our Government will continue to implement reform to ensure our children can attend school regardless of their economic situation."

He said the list of schools that had not received their full funding was being finalised and outstanding money would be released direct to schools in the coming days.

He was responding to reports last week that 13,000 public schools will close in term two due to non-payment of free tuition fee subsidy.