THE ongoing criminal investigations into the misappropriation and stealing of K268 Million Community Mine Continuation Agreement (CMCA) Trust Funds for the people of Western province has led to two more arrests.
Police Commissioner David Manning who headed the Special Police Forensic Criminal Investigation Team announced this in a statement on Friday.
Manning said about a fortnight ago, Managing Partner of Young & Williams Lawyers, Gregory James Sheppard was arrested and charged with two (2) counts of false pretence and another two counts of conspiracy after his law firm was allegedly being paid K52 Million from the WPPD CMCA Trust Funds as legal fees.
At around 4am on Tuesday Feb 2, two directors of Ok Tedi Fly River Development Foundation Limited (OTFRDF), Boston Kasiman and Annie Smerewai were also arrested in Ningerum, a sub-station of Kiunga in Western province.
The Commissioner said the suspects were flown to Port Moresby where they were interviewed and each of them were slapped with 15 charges comprising of five counts of false pretence, five counts of conspiracy and five counts of misappropriation.
According to Manning, it was confirmed that Mrs Smerewai has been the director of OTFRDF since the formation of the company on 23rd September, 2016, and Mr Kasiman was appointed as director on 10th of July, 2019.
“Police formally searched the company’s records held with Investment Promotion Authority (IPA) and noted that mandatory forms required by Companies Act 1997, that must be completed and lodged when registering an entity, appointing directors, secretary, shareholders and changing company’s addresses were never completed and lodged with IPA.
“No such records were found for years covering 2016 to 2020. The changes in the company’s records were simply made through online by the company’s appointed agent named Samson Jubi whilst residing in Cairns, Australia,” Manning said.
In the absence of the compulsory company forms, Mr Manning said the manner in which the directors, shareholders, and secretary of OTFRDF were appointed are highly suspicious and questionable.
“Police developed an impression that 147,000 plus people of CMCA Communities who are owners of the K268 Million WPPD CMCA Trust Funds never authorized the registration of OTFRDF and the appointment of its directors, secretary and shareholders.”
Police said Mr Kasiman and Mrs Smerewai were among other directors who were present and passed a number of Board Resolutions during two separate Board Meetings held in Port Moresby in 2018 and 2019 to illegally pay a total of K268 Million out of the WPPD CMCA Trust Account held with Australia & New Zealand Banking Group (PNG) Ltd.
Manning said the following payments were released after the Board Resolutions of the two Board Meeting Minutes, Approved Instruction Application Forms and other necessary documents were submitted to Australia & New Zealand Banking Group (PNG) Ltd by OTFRDF:
No. Date of Withdrawal Amount Withdrawn Recipients Purpose of Payment
1). 17th Aug 2018 K15, 000,000.00 Young & William Lawyers Legal Fees
2). 04th Sept 2018 K5, 000,000.00 OTFRDF Ltd International Draft & TT
3). 23rd Dec 2019 K37, 000,000.00 Young & William Lawyers Legal Fees (Ex. Report & Disburse)
4). 23rd December 2019 K21, 000,000.00 OTFRDF Ltd Payment to 7 CMCA Regions
5). 21st February 2020 K190, 000,000.00 OTFRDF Ltd Payment to CMCA Family Account
“Police established that the payments were withdrawn not in compliance with the requirements of the Trust Instrument and the expenditures were not consistent with the spirit, tenor and intended purpose of the WPPD CMCA Trust Funds, and used for purposes contrary to the CMCA beneficiaries.
“Police also learnt that none of the directors including the two that were arrested are current formally recognized leaders of the CMCA Communities representing 147,000 people emanating from 158 villages along the CMCA Corridor in Western Province.”
Manning said Police are now calling on the Chairman Steven Bagari, Secretary Samson Jubi and other five Directors of the purported entity OTFRDF who are currently hiding to voluntarily present themselves to the Special Police Forensic Criminal Investigation Team for appropriate inquiry.
The Commissioner further said the combined forensic and criminal investigation currently undertaken by the Police are also scrutinizing all payments that were made from K268 million to certain unrelated individuals and entities.
“The payees will be asked to provide proof of goods and services that they delivered for the benefit of CMCA Communities, and inquired on how their goods and services were procured by OTFRDF.”