Financial Crime World

Title: Murdered PNG Ports Boss Linked to Millions in Suspect Payments from Australian Competitor

Background

  • Once-rising star in PNG’s technocracy, Fego Kiniafa, murdered in September 2022
  • Questions raised about his time leading Papua New Guinea’s Ports Corporation (PNG Ports)
  • Connections to an Australian businessman with a contentious past and a multinational ports operator

Kiniafa’s Murder and Its Aftermath

  • Murdered during Papua New Guinea’s independence day celebrations
  • Thousands displaced
  • Raised questions about his role in PNG Ports

The Pandora Papers: Shady Transactions

  • Newly released documents suggest financial benefits to Kiniafa and his predecessor
  • Connections to an Australian businessman, Donald Matheson
  • Multinational ports operator, ICTSI, allegedly paid Matheson’s Singapore company, Coral Seas Planning Consultants, $4.35 million in 2017

Alleged Kickbacks

  • Some of these funds reportedly sent to senior PNG Ports officials
    • Including Alphonse and Kiniafa’s close friend
  • Matheson’s business ties to PNG Ports officials raise suspicions

Denials of Wrongdoing

  • Both Alphonse and Matheson deny any wrongdoing

Ongoing Investigations

  • Papua New Guinea’s police investigating potential connection to Kiniafa’s murder
  • ICTSI’s port expansion initiative under scrutiny

Previous Controversies

  • Australia’s massive aid initiative faces risks
  • PNG Ports had disappointing experiences with Chinese companies

Promising Leader

  • Kiniafa was an ambitious and promising leader
  • Had built a national profile through various business and government roles

Concerns and Implications

  • Former Australian Federal Police officer expresses concern regarding the transactions
  • Future of the Australian Infrastructure Financing Facility for the Pacific’s port expansion initiative uncertain

Long-term Considerations

  • Awareness of PNG’s state-owned enterprises’ long track record of misappropriation and malpractice essential
  • One must proceed with caution and awareness in countering China’s growing influence in the Pacific.