Australians join PNG PM's fraud probe

Australian private investigators and an Aussie judge are playing key roles in a corruption scandal that threatens to topple Papua New Guinea Prime Minister Peter O'Neill, it has emerged.

png_140616_aap.jpg

Papua New Guinea's Prime Minister Peter O'Neill. (AAP)

 

A warrant for Mr O'Neill's arrest was obtained on Monday by fraud investigators who want to grill the prime minister over allegations he siphoned millions of dollars of public cash to a law firm.

Mr O'Neill strongly denies any wrongdoing and obtained a court order putting the warrant on ice.

The key evidence in the case - which has gripped PNG for months - is a letter that Mr O'Neill allegedly signed authorising $31 million be paid to prominent law firm, Paul Paraka lawyers.

The prime minister has dismissed the note as a fake.

But Taskforce Sweep boss Sam Koim revealed on Tuesday that Sydney-based private investigators believe the document is genuine.

"We have now received the forensic examination report from the Sydney-based Forensic Document Services Pty Ltd confirming that the signature on the letter ... directing payments to Paraka Lawyers is PM O'Neill's," Mr Koim said.

Police Chief of Operations and Deputy Commissioner Simon Kauba said his officers would abide by Monday's court ruling that stayed the warrant for Mr O'Neill's arrest.

But he urged the prime minister to hand himself in.

"In the interest of national security I would like to invite the prime minister to, without any further delays, voluntarily make himself available to police for the interview to be conducted," Mr Kauba said.

The case will be back in PNG's National Court on Wednesday morning, with Mr O'Neill's lawyers due to respond to an affidavit filed by Mr Koim on behalf of Task Force Sweep and the police.

Meanwhile, Mr O'Neill has announced a commission of inquiry into the allegations against him - led by Australian judge Warwick Andrew.

Mr O'Neill claims that police, courts and government departments have all been politically compromised.

"I think it's needed to be cleaned and we need an independent process to clean it out," he added.

The Paul Paraka affair - called Parakagate in Port Moresby - is one of PNG's longest-running fraud investigations.   Mr Paraka, one of the most powerful lawyers in PNG, was arrested and charged in 2013 for allegedly receiving the state monies.

Task Force Sweep alleges the payments were spread over a seven-year period and ran into the "hundreds of millions".


Share
3 min read

Published

Updated

Source: AAP

Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world
Australians join PNG PM's fraud probe | SBS News