Businessman Convicted of Misappropriating $US2 Million Meant for School Renovation in Papua New Guinea
The National Court in Papua New Guinea handed down a guilty verdict against Eremas Wartoto, a businessman from East New Britain, for misusing public funds meant for the upgrading of Kerevat National High School.
Background
- The trial dates back to 2008 when the school was in desperate need of repairs to its dormitories, ablution blocks, water and sewerage.
- Sarakolok West Transport (SWT), a company owned by Wartoto, was awarded a contract worth almost US$2.5 million for the much-needed renovations.
Misappropriated Funds
- Following the award, SWT requested an advance payment of US$2 million before any work commenced.
- The court found that no improvements were made to the water and sewerage situation at the school after this payment was processed.
- It appeared that the funds had been misappropriated instead.
Previous Controversies
- Wartoto has come under the radar for financial misdeeds before. In 2013, he gained notoriety as fraud detectives sought his return to Papua New Guinea from Australia.
- Australia had granted him a 457 visa despite a PNG government request barring his entry due to a series of alleged fraud cases.
Previous Misappropriation of Funds
- In late 2013, PNG’s former planning minister, Paul Tiensten, was found guilty of misappropriating a US$3.6 million grant meant for Wartoto and his company, Travel Air.
- Tiensten was subsequently sentenced to nine years in jail with hard labor.
Consequences
- Wartoto had maintained his innocence, entering a plea of not guilty in the recent trial.
- The misappropriation of state funds has undoubtedly set back efforts to maintain and improve infrastructure in East New Britain.
Reminder of the Ongoing Issue
- This case marks a grim reminder of the ongoing issue of corporate fraud in Papua New Guinea.
- The need for stricter measures to prevent such occurrences in the future cannot be overstated.
Image: RNZI / Johnny Blades