Shocking Revelations of Financial Fraud Cases in Papua New Guinea: Murdered Ports Boss and Offshore Payments

A series of shocking revelations about offshore financial dealings and potential corruption at Papua New Guinea’s (PNG’s) ports came to light following the brutal murder of a prominent businessman and former ports boss, Fego Kiniafa, last year.

Death of Fego Kiniafa

Fego Kiniafa, a rising figure in PNG’s technocrats and a promising leader, was killed in a murder that went unsolved for months. He had negotiated the more than A$621 million (US$ 四百三十四千万) deal for port expansions with Australia before his tragic demise.

Offshore Payments and Questionable Contracts

New investigations by the Organized Crime and Corruption Reporting Project (OCCRP) and the Australian Broadcasting Corporation (ABC) suggest that senior figures at Papua New Guinea’s state ports company allegedly received financial benefits from an offshore account. These payments may have influenced contract awards.

The Singaporean Account

Before his death, Kiniafa and other senior officials, including his predecessor Stanley Alphonse, reportedly received benefits through an offshore Singaporean account controlled by an Australian businessman named Don Matheson.

Don Matheson and His Controversial Past

Matheson, who faces serious allegations of misleading business associates and failing to pay taxes in Australia, has an intriguing past. His Singaporean company received approximately US$ 5.5 million from the Manila-based multinational ports operator, International Container Terminal Services (ICTSI), around the time the company was granting significant contracts to run Papua New Guinea’s largest terminals.

Financial Ties and Allegations of Corruption

Documents from the Pandora Papers show that Matheson’s Singaporean account sent funds towards Kiniafa and Alphonse, who both deny any wrongdoing. The money reportedly went towards perks for Kiniafa, such as a racehorse and medical equipment.

Implications of the Findings

Kiniafa’s murder and the financial ties between the companies and officials could pose potential dangers for the Australian government’s significant infrastructure aid package in the Pacific region.

Reactions and Concerns

The circumstances surrounding the killing and the financial dealings have raised concerns beyond Kiniafa’s death. They highlight the need for greater transparency in business dealings in Papua New Guinea and the potential risks to Australia’s aid initiative.

Calls for Action and Transparency

John Chevis, a former Australian Federal Police officer advising Papua New Guinea’s financial authorities, warned: “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.”

Paul Barker, the executive director of the Institute of National Affairs in Port Moresby, added: “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.”

Conclusion

The investigation into these findings continues, with all eyes on the Papua New Guinea authorities and the Australian government to pursue these claims and ensure a fair and transparent path forward for the region’s future infrastructure development.