Police Probe International Fraud Allegations at PNG Ports Corporation
Date: June 14, 2023
Commissioner Announces Investigation into Economic Crime Allegations
Royal Papua New Guinea Constabulary (RPNGC) is currently investigating several transnational economic crime allegations. Among these cases, a formal criminal investigation was initiated last month regarding fraud and official corruption allegations reported by ABC News (Australian Broadcasting Corporation) and the Organized Crime and Corruption Reporting Project.
- Police Commissioner David Manning announced the investigation
- Reports allege bribery of former CEOs of PNG Ports Corporation
- ICTSI, an international company, implicated in the bribery allegations
- Investigation aims to clear defamatory and fraud allegations
Allegations against Former CEOs and ICTSI
The reports allege that former CEOs of PNG Ports Corporation, Fego Kiniafa and Stanley Alphonse, were bribed by Don Matheson, an Australian citizen acting on behalf of International Container Terminal Services Inc (ICTSI), to secure the contract to operate Lae and Motukea Wharves. ICTSI was awarded the 25-year contract in a public international tender process.
Order for Independent Investigation
Prime Minister James Marape distanced himself and his government from the allegations and ordered an independent investigation. The police are now determining if Fego Kiniafa, Stanley Alphonse, Don Matheson, ICTSI, and any other interested parties committed offenses against PNG criminal laws.
Complexity and Transnational Nature of the Investigation
Given the complexity and transnational nature of the economic crime investigation, the police are independently reviewing the entire procurement process undertaken by PNG Ports Corporation.
Impact on State-Owned Entity
PNG Ports Corporation, one of the best performing state-owned entities in the country, has received substantial financial backing from the Asian Development Bank and the Australian Government. However, the Lae and Motukea Wharves, which are currently operated by ICTSI and have been funded by ADB and the Australian Government, are implicated in the fraud allegations.
Sovereign State’s Zero-Tolerance Policy
It is crucial for Papua New Guinea as a sovereign state to conduct a thorough independent investigation to establish the truthfulness of the allegations and uphold a zero-tolerance policy against corruption and fraud.
International Cooperation and Criminal Investigations
Both the Australian Federal Police and INTERPOL Financial Crime and Anti-Corruption Centre have shown interest in the case and are conducting their own independent criminal investigations. Police have requested support from these agencies to conduct the complex transnational economic crime investigation outside of PNG.