Shockwaves from a Murdered Leader: Uncertainty Surrounds Australia’s Multibillion-Dollar Infrastructure Project in Papua New Guinea

The Tragic Death of Fego Kiniafa

In the Eastern Highlands of Papua New Guinea, the shockwaves of a murdered promising leader continue to ripple through the Pacific nation, casting doubt on the future of a multibillion-dollar Australian infrastructure project ¹. Fego Kiniafa, the charismatic CEO of PNG Ports at the time of his September 2022 death, was a rising star in Papua New Guinea’s political scene before his untimely demise ².

The Rampage and Destruction in His Wake

Murdered in a gruesome manner, his killing sent thousands of his tribesmen into a rampage, torching over 400 homes, and forcing over 3,000 people to flee ¹. The tragic event not only left a trail of destruction but also raised concerns regarding the multimillion-dollar port expansion deal signed between PNG Ports and Australia ¹. This deal is a crucial part of Australia’s attempt to counter China’s increasing influence in the region ¹.

Potentially Damning Leaked Records

Recently, a joint investigation by OCCRP and the Australian Broadcasting Corporation (ABC) unearthed potentially damning information from the Pandora Papers regarding questionable dealings between Kiniafa and PNG Ports officials ³. These findings could link them to the lucrative contracts awarded to International Container Terminal Services (ICTSI), the winning bidder for Port Moresby’s and Lae’s biggest terminals ³.

The Alleged Payments and Perks

The investigative findings revealed that payments totaling $4.35 million from ICTSI were deposited into an account controlled by Don Matheson, an Australian businessman with a past marred by misdeeds and financial difficulties ^{3 4}. These funds, which landed around the same time as the contracts, were then used to pay for perks for both Kiniafa and his predecessor Stanley Alphonse, including a racehorse and medical equipment ³.

Suspected Corruption at PNG Ports

Although not directly linked to Kiniafa’s death, these findings have raised concerns about potential kickbacks and the potential for corruption in the awarding of contracts at PNG Ports ³. John Chevis, a former Australian Federal Police officer who advises Papua New Guinea’s financial authorities, commented on the significance of these findings, stating, “Payments coming out of an account into which money had come from a winning contractor, appearing to go back to people who may have been able to make decisions about who won that contract –– that is a reason to go and have a bit of a closer look.”

Caution and Concerns about Australia’s Involvement

With the loss of a potential political leader and the exposure of questionable business practices, the fate of the PNG port expansion hangs in the balance ¹. Paul Barker, executive director of the Institute of National Affairs in Port Moresby, emphasized the need for caution, stating, “It is critical that one is not going in blindly, that one is aware that when it comes to the state-owned enterprises, including PNG Ports, there has been a long track record of misappropriation and malpractice.” ⁵

As the investigation unfolds, Kiniafa’s sudden and tragic demise serves as a stark reminder of the complexities and challenges inherent in international development aid, as well as the delicate nature of political and economic dynamics in the Pacific region ⁵.