A Special Police Forensic & Criminal Investigation Team (SPFCIT) headed by Police Commissioner, David Manning, has arrested and charged a woman director involved in misappropriation and theft of K268 million of Community Mine Continuation Agreement (CMCA) Trust Funds for the people of Western Province held with ANZ Bank.
Police Commissioner, David Manning, announced this in a statement today.
According to the statement, the defendant Edna Oai, a 45-year old female from South Fly District in Western Province was picked up from Daru on Monday 11th January 2020, by SPFCIT and flown to Port Moresby where she was formally charged with 15 counts of false pretence, conspiracy and misappropriation.
Police said Mrs Oai has been refused Police bail, due to the seriousness of the offence.
It is alleged that a significant amount of money was misappropriated by the alleged defendant, the secretary and directors of Ok Tedi Fly River Development Foundation Limited (OTFRDF Limited).
According to the statement SPFCIT conducted its investigation into the alleged misappropriation and stealing of CMCA Trust Funds beginning October 2020.
It is understood, the investigation was conducted based on a formal complaint lodged by Member for North Fly, James Donald, with the Office of Police Commissioner.
Police said the misappropriated CMCA Trust funds were intended to fund and implement development projects for CMCA Communities in Western Province.
“The use and management of CMCA Trust Funds are guided by the Trust Instrument underpinning the CMCA Trust Account and are not to be used for any other purpose.
The investigation established that the funds were diverted and paid to a certain law firm, a company owned by the Secretary of OTFRDF LTD, specific directors’ personal bank accounts and other companies between August 2018 and early 2020.”
Police said the CMCA Trust Account were initially under the custody of the Independent State of Papua New Guinea through its nominee, Board of Trustees (BOT).
It was alleged that the State’s BOT were replaced by representatives of OTFRDF LTD namely, Chairman – Steven Bagari, Chief Executive Officer – Samson Jubi and Directors Abel Darugo and charged Edna Oai as the new trustee signatories for CMCA Trust Account in August 2018.
“The four signatories of OTFRDF Ltd purporting to represent the interest of the 147,000 plus people originating from 158 villages within CMCA Corridor in Western Province, accessed the CMCA Trust Account and withdrew a total of K268 Million between August 2018 and February 2020 and deposited them into Non-Trust, Non-Interest-Bearing Bank Accounts belonging to a certain law firm and OTFRDF Ltd held with different commercial banks.”
According to Manning’s statement, SPFCIT discovered that the people of CMCA Corridor in Western Province have been constantly complaining that no single development project has been funded and implemented in CMCA Communities using the CMCA Trust Funds.
Meanwhile, SPFCIT is continuing its investigation and is seeking the former and current directors of OTFRDF Ltd to come forward to assist Police regarding the misappropriation of the K268 Million.
Police also noted that the requirements of the company Act 1997, such as preparation and lodgement of Annual Returns and Financial statements for financial years covering 2016 to 2020 were not complied with.
“Further inquiries will be undertaken to determine if the company has complied with other statutory requirements such as payment of mandatory taxes to Internal Revenue Commission.”
Further, Police ascertained that the Board of Directors of OTFRDF LTD contained individuals that were incorrectly appointed, based on the existing proper processes that are followed to appoint leaders representing the people along the CMCA Corridor in Western Province.
The election of the leaders are normally conducted by officials from the PNG Electoral Commission and witnessed by representatives from the Ok Tedi Development Foundation, Ok Tedi Mining Limited, Village Councillors, Church, Women’s & Children’s Groups and other interested stakeholders.
The SPFCIT is comprised of Police Detectives, a Forensic Accounting Specialist and Legal Counsel engaged through Department of Justice & Attorney General (DJAG).
