Title: “Alleged $104m Fraud Scheme at Ok Tedi Mine Trust Fund in Papua New Guinea: Four Directors Charged”

Arrest and Charges

Greg Sheppard, an Australian lawyer and former Queensland crown prosecutor, and three other directors of the Ok Tedi Fly River Development Foundation Limited (OTFRDF), have been arrested and charged with financial crimes totaling over 268m kina (AUD104m).
Sheppard has previously faced charges of money laundering, for which he was arrested and bailed in January and June.
Edna Oai, Annie Smerewai, and Boston Kassiman, have also been charged with 15 counts of financial crimes, including misappropriation and false pretenses.

The royal Papua New Guinea Constabulary described the allegations as the “single biggest fraud ever investigated.”
They are still seeking to arrest and charge Samson Jubi, the CEO, and other suspects.

In January, Sheppard’s law firm, Young & Williams, and the trust fund board rejected the charges against Sheppard.
They labeled the charges as “politically motivated” and a “power grab” in Papua New Guinea.
The police commissioner, David Manning, denied such claims, stating, “The fact that significant funds have allegedly been misappropriated by trustees without any real benefit to the intended beneficiaries should be a clear indicator of wrongdoing.”

According to police, 268m kina was misappropriated from the Western Province People’s Dividends Community Mine Continuation Agreement (WPPD CMCA) trust fund.
The money was redirected into the accounts of the Ok Tedi Fly River Development Foundation and Sheppard’s law firm.
The trust fund was created to use profits from the Ok Tedi copper and goldmine to fund development projects like roads, schools, and health clinics for villages in Western Province.

Despite these efforts, residents of the affected villages and politicians in Port Moresby have long complained that the funds failed to reach Western Province, remaining one of the most impoverished regions in Papua New Guinea.

Young & Williams’ website lists Sheppard as a practicing lawyer in Papua New Guinea since 1990, with an impressive client base consisting of “prime ministers, ministers of state, and businessmen.”
Sheppard also served as the manager of Sheppard, a Brisbane indie-pop group featuring three of his children, who enjoyed a No. 1 Australian hit single, “Geronimo,” and a performance at the AFL grand final last October.

Investigations continue, with additional arrests expected in the coming days.
The royal Papua New Guinea Constabulary remains committed to recovering the misappropriated funds and ensuring accountability for those allegedly involved in the fraud.