Papua New Guinea’s Climate Change Authority: Senior Staff Face Criminal Proceedings Over Alleged $2 Million Corruption Scandal
Arrest of Finance Manager Ivan Aipi
Port Moresby - Senior officials at Papua New Guinea’s Climate Change and Development Authority (CCDA) are facing criminal proceedings following allegations of corruption and the misappropriation of over $2 million in public funds. In January 2023, finance manager Ivan Aipi, 35, was arrested after armed police raided the CCDA’s Port Moresby headquarters, seizing computers and financial records.
- Aipi is currently charged with 35 offenses, including official corruption, abuse of office, and misappropriation of funds.
Investigator Bribery Allegation
According to court documents, Aipi’s wife, Magistrate Hilda Aipi, allegedly attempted to bribe an investigating police officer. She claimed she offered him 3,000 kina ($1,280) at a courthouse car park. However, the officer rejected her offer, and she was never formally charged with any crime.
Misappropriated Funds and Illegal Payments
The alleged misappropriations and illegal payments were made between August 2022 and March 2023. Police contend that more than 5 million kina ($2.1 million) was diverted away from development programs and spent on unauthorized expenses.
More than 5 million kina ($2.1 million) was diverted away from development programs and spent on unauthorized expenses.
Bypassing Procurement Process
Aipi is also accused of bypassing the established procurement process and “hijacking” cheques for the benefit of CCDA’s acting managing director, William Lakain, and his associates. However, Lakain has not been charged with any offenses.
Internal Investigation Calls
CCDA receives funding from local taxes, international grants, and a rainforest preservation project with ties to Australian businesses. One senior CCDA official, Alfred Rungol, raised concerns with authorities after he allegedly uncovered evidence of misappropriated funds.
Suspension and Reinstatement
In May 2022, Rungol sent an email to CCDA managers accusing two senior staff members of attempting to transfer 45,000 kina ($20,000) from public funds into their personal accounts. Rungol was later suspended and then dismissed over unrelated allegations. However, he appealed the decision and won back his job.
Response from Royal Papua New Guinea Constabulary (RPNGC)
A spokesperson from the Royal Papua New Guinea Constabulary (RPNGC) declined to comment directly on the case but emphasized the importance of using climate change funds appropriately.
When we have our internal processes being abused, it gives a very bad impression back to our donors.
William Lakain’s Denial
CCDA acting managing director, William Lakain, denied the allegations in a letter to the Commissioner of Police. He wrote that he was deeply troubled by the actions of those making unsubstantiated complaints and attempting to have him imprisoned for conducting his legal duties. Lakain has not responded to media questions.