Title: Senior Finance Manager of Papua New Guinea’s Climate Change Authority Arrested on Fraud Allegations
Alleged Misappropriation of Over $2 Million in Public Funds at CCDA
Port Moresby — The Papua New Guinea (PNG) Police, with assistance from armed officers, have raided the Climate Change and Development Authority (CCDA) headquarters in Port Moresby, leading to the arrest and charging of the finance manager, Ivan Aipi, with 35 offenses.
Funds Misappropriation and Corrupt Practices
The CCDA, which is funded by the local government, international grants, and revenue generated by the New Ireland Hardwood Timber (NIHT) carbon credits project, is currently under investigation due to alleged misappropriation of public funds totaling over $2 million.
- Ivan Aipi, finance manager, arrested and charged with corruption and misuse of public money.
- Aipi accused of illegally executing cheques for senior officials and their associates.
- Computers and financial records confiscated during the raid.
Whistleblower Reports of Suspected Corruption and Overseas Conference Scandal
Two whistleblowers, including a senior CCDA official, Alfred Rungol, had previously reported suspected misconduct within the organization.
- Rungol alleged two senior staff sought payment for attending a conference in Germany.
- The proposed payments were claimed to be corrupt.
- Subsequent suspension and termination from employment.
Investigation and Charges
Upon receiving the allegations, the National Fraud and Anti-Corruption Directorate and the Major Crimes Unit started an investigation, leading to Ivan Aipi’s arrest.
- Allegations include misappropriation of up to $150,000 spent on hotel accommodation with little beneficial outcome for primary programs.
- CCDA’s managing director, William Lakain, under investigation for alleged involvement in the issue.
Violation of the Public Finances Management Act
The revelations from this investigation followed reports that logging was taking place in rainforests intended to be protected by the project.
- Four Corners report exposed logging in protected rainforests linked to Australian businesses, banks, and organizations.
- PNG Constabulary’s Crimes Director Joel Simatab expresses concern over Public Finances Management Act violations.
Impact and Concerns
The PNG Constabulary’s Crimes Director, Joel Simatab, has emphasized the gravity of the situation.
- Misappropriated funds harm the organization and damage PNG’s reputation.
- Millions of kina donated to fight climate change being misused.