Title: “Australian Lawyer and Ok Tedi Foundation Directors Arrested for Alleged $104m Financial Fraud in Papua New Guinea”

Arrest of Greg Sheppard and Ok Tedi Foundation Directors

In a significant development, an Australian lawyer, Greg Sheppard, was arrested in Papua New Guinea (PNG) for the third time on allegations of misappropriating AUD104m from the Ok Tedi Fly River Development Foundation Limited (OTFRDF).
Three directors of the OTFRDF, Edna Oai, Annie Smerewai, and Boston Kassiman, were also apprehended on similar charges.
These arrests mark the “biggest fraud investigation” in the history of the Royal Papua New Guinea Constabulary.

Sheppard and the OTFRDF directors are charged with 15 counts of financial crimes, including misappropriation and false pretence.
The police are still investigating and searching for the Chief Executive Officer, Samson Jubi, and more suspects.

The alleged misappropriation occurred from the Western Province People’s Dividends Community Mine Continuation Agreement (WPPD CMCA) trust fund.
The trust fund was established from profits of the Ok Tedi copper and goldmine to fund development projects, such as roads, schools, and health clinics, in Western Province.

In January, Sheppard’s law firm, Young & Williams Lawyers, and the trust fund board argued that the charges against Sheppard were politically motivated and an attempt to control funds intended for affected communities.

Commissioner of Police, David Manning, denied any political motivation stating, “The fact that significant funds have reportedly been expended by ’trustees’ with no tangible benefits to the ‘beneficiaries’ should warrant serious concern.”

Sheppard, who has practiced in Papua New Guinea since 1990, has previously represented prime ministers, ministers of state, and businessmen.
He is also the manager of the Brisbane indie-pop group, Sheppard, consisting of three of his children, who have had a No. 1 Australian hit single, “Geronimo,” and performed at the AFL Grand Final last October.

Residents and politicians have long complained about the lack of funds reaching the region, with Western Province remaining one of the most impoverished in the country.