Title: “Alleged Multimillion-Dollar Fraud Scandal Rocks Papua New Guinea’s Climate Change Body”

Overview

Senior officials at Papua New Guinea’s Climate Change and Development Authority (CCDA) are under investigation for suspected corruption and misappropriation of public funds totaling over $2 million.

Key Points

1. CCDA officials, including finance manager Ivan Aipi, face criminal proceedings.
2. Aipi charged with 35 offenses, including illegally executing checks for senior officials.
3. Whistleblowers raised concerns about suspicious transactions.
4. Police seized computers and financial records during a raid on CCDA’s premises.
5. Wife of finance manager attempted to bribe an investigating officer.
6. Funds for CCDA sourced from local taxes, international grants, and carbon credits.

The CCDA Scandal

The Climate Change and Development Authority (CCDA) in Papua New Guinea is facing a high-profile scandal, with senior officials under criminal investigation for the misappropriation of more than $2 million. The CCDA is responsible for leading the country’s response to climate change and obtains its funding from local taxes, international grants, and revenue from a rainforest preservation project.

Arrest and Charges

Finance manager Ivan Aipi was arrested and charged with 35 offenses in relation to the alleged corruption and misappropriation of funds. A raid on the CCDA’s Port Moresby offices uncovered evidence of a suspected illegal transfer of funds for the benefit of senior officials.

Whistleblowers’ Allegations

Two whistleblowers, who raised concerns about suspicious transactions within the CCDA last year, have come forward. One of these whistleblowers, Alfred Rungol, claims that two senior CCDA staff members attempted to transfer $20,000 into their personal bank accounts as reimbursement for attending an overseas conference.

Investigations

Investigations by the National Fraud and Anti-Corruption Directorate and the Major Crimes unit have uncovered allegations of misappropriation of funds totaling over $2 million between August last year and March 2023. Over $150,000 was reportedly spent on hotel accommodation in Port Moresby with little demonstrable benefit for the CCDA’s primary development programs.

Bribery Attempt

Additionally, the wife of the finance manager, Magistrate Hilda Aipi, attempted to bribe a fraud squad officer. The officer claims that Hilda Aipi handed him 3,000 kina ($1,500) in the courthouse car park, insisting it was a gift from her husband and the acting managing director, William Lakain.

Impact of the Scandal

The alleged misappropriations have raised significant concerns among Papua New Guinea’s citizens and international partners. The Royal Papua New Guinea Constabulary’s crimes director, Joel Simatab, expressed concerns regarding the impact on the country’s reputation and its relationships with international donors, as climate change is a global issue and PNG is a recipient of donor support.

Ongoing Investigation

The investigation is ongoing, and further details are expected to be released as the case progresses through the legal system.