PNG prime minister faces charges

A warrant has been issued for the arrest of Papua New Guinea’s prime minister.

Papua New Guinea’s anti-corruption task force says fresh evidence shows PNG’s Prime Minister Peter O’Neill has acted “dishonestly and corruptly” in a case involving $28 million in legal fees paid by the government.

An arrest warrant was served on O’Neill on Monday, but his legal team arranged a stay in proceeding.

O’Neill has vowed to defend himself against what he describes as a “politically motivated stunt”.

A key piece of evidence in the corruption investigation is a letter seemingly signed by O’Neill authorising his Finance Minister James Marape to pay the legal fees, but O’Neill has dismissed the letter as a forgery.

However, a leaked “very confidential” letter from the chairman of Taskforce Sweep, Sam Koim, to PNG’s police commissioner outlines the new evidence that led to the arrest warrant.

“We have now received the forensic examination report from the Sydney based Forensic Document Services Ltd confirming that the signature on the letter – directing payments to Paraka Lawyers – is Prime Minister O’Neill’s,” Koim said.

Taskforce Sweep said a subsequent letter from O’Neill to Marape adds weight to the evidence.

“In that letter, PM O’Neill attempted to clarify his previous letter – and in doing so, confirms the existence of the first letter of January 24, 2012, which he openly denied,” Koim said.

The confidential correspondence to the police commissioner shows that evidence and a sworn statement was provided by recently-sacked Treasure Don Polye.

In March, Polye was removed from cabinet for refusing to sign a $1.2 billion loan from the Australian branch of UBS bank.

“After reassessing the case and analysing the available evidentiary materials, we have reached a considered belief that Prime Minister O’Neill acted dishonestly and corruptly when he directed Paul Paraka Lawyers outstanding legal bills to be settled in full,” Koim said.

“A conspiratorial line between Paul Paraka and PM O’Neill is also visible from our analysis.”

The Taskforce Sweep chairman also said there was “more than sufficient evidence” to mount a case of misappropriation, conspiracy to defraud and official corruption against O’Neill.

O’Neill responded late Monday, saying: “Today has been one of the worst and most tragic days that Papua New Guinea politics has ever experienced.”

He described the arrest warrant as a “politically motivated stunt” by “influenced police officers” designed to destabilise the government.

“We will therefore strongly defend and test these issues raised today in our courts and I can assure you I will be cleared on any of these issues raised,” O’Neill said in a media statement.

The arrest warrant has been stayed until a further meeting at the court, expected on Tuesday.