Police Launch Independent Investigation into Alleged Port Corruption Scandal in Papua New Guinea

Date: Wednesday, June 14, 2023

Commissioner of Police Mr David Manning

In a press conference on Wednesday, Commissioner of Police Mr David Manning announced an investigation into allegations of fraud and official corruption concerning the PNG Ports Corporation and foreign business entities.

Investigation Details

Mr Manning acknowledged several ongoing fraud cases, one of which is the investigation into the PNG Ports Corporation. The investigation stems from reports published by the Australian Broadcasting Corporation (ABC) and the Organized Crime and Corruption Reporting Project (OCCRP). These reports accuse former CEOs of the PNG Ports Corporation, Fego Kiniafa and Stanley Alphonse, an Australian national, Don Matheson, and International Container Terminal Services Inc (ICTSI) of accepting bribes.

The police investigation aims to determine if illegal activities took place and if all parties, listed above, violated Papua New Guinea’s criminal laws.

Prime Minister’s Response

Prime Minister James Marape publicly distanced himself and his government from the allegations, ordering an independent inquiry. Previously, PNG Ports Corporation had awarded the contract to ICTSI through a public international procurement process.

Complex Transnational Economic Crime Investigation

Commissioner Manning stated that this case required a “comprehensive review of the entire public tendering process undertaken by PNG Ports Corporation” to establish if any bias was present during the awarding of the contract.

PNG Ports Corporation, one of the top-performing State-Owned Entities (SOEs), has received significant financial backing from the Asian Development Bank (ADB) and the Australian Government’s Australian Infrastructure Financing Facility for the Pacific (AIFFP). The Lae and Motukea Wharves, heavily funded by ADB and the Australian Government, are currently being operated by ICTSI.

International Collaboration

As part of the investigation, the PNG Police is collaborating with the Australian Federal Police and the INTERPOL Financial Crime and Anti-Corruption Centre to conduct a thorough probe into the matter. Support from these international organizations has been requested to execute the investigation beyond Papua New Guinea’s borders.

Zero-Tolerance Policy on Corruption and Fraud

Commissioner Manning emphasized the importance of carrying out a proper and independent investigation to uncover the truthfulness of the allegations. Manning reiterated that PNG’s commitment to a zero-tolerance policy on corruption and fraud is essential in maintaining public trust.

The PNG Police investigation aims to provide clarity on the accused individuals, ensuring that those not involved in any unlawful acts are cleared of the defamatory, fraud, and administrative accusations hanging upon them.