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Somare denies taking bribes

Monday 5 September 2016 | Published in Regional

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PAPUA NEW GUINEA – Papua New Guinea’s founding prime minister Sir Michael Somare has denied receiving bribes or inducements, after a Singapore court said he got more than A$1 million from a money laundering scam.

Singapore’s State Court sentenced an American man and a Singaporean woman to jail on September 1 for using a shell company and a fake invoice to steal US$3.6 million, claiming it was for telecommunications equipment for a community college project in PNG.

The country’s Corrupt

Practices Investigation Bureau said the pair deposited US$784,000 (A$1.04 million) in a Singapore bank account belonging to Sir Michael.

The Straits Times reports that in 2010 a married couple laundered US$3.6 million which had been meant to set up community colleges in PNG – then gave US$784,000 of it to Sir Michael, the country’s prime minister at the time.

Singaporean woman Lim Ai Wah, was given five years’ jail while her American husband, Thomas Doehrman, got five years and 10 months – both found guilty on falsification of accounts and charges of transferring the benefits of crime.

Doehrman had been the trustee of a fund set up by the PNG government to set up community colleges in the country.

In their police statements, Lim and Doehrman said bribes had to be paid to Sir Michael in order to get business from PNG.

Deputy Public Prosecutor Alan Loh said the fact that some of the laundered money was traced to Sir Michael’s bank account in Singapore will cause public disquiet.

In a statement, Sir Michael said he had never received inducements or bribes at any time in his political career.

“A court case has found two persons in Singapore guilty of money laundering offences and subsequently names me as a recipient of some funds,” he said.

“I have taken steps to get clarification and legal advice on this matter, but I would like to state from the outset that at no time in my political career have I received inducements or bribes.

“At first glance these charges say otherwise. Therefore, during the next few days, I will consult with my family and legal counsel and consider how to address this matter.”

Sir Michael is one of Papua New Guinea’s “Grand Chiefs” and remains a revered figure for his role in securing PNG’s independence from Australia.

He acknowledged the impact news of the judgment has had.

“I take this opportunity to apologise to the people of Papua New Guinea, my people of East Sepik and my family for the shame and embarrassment these reports may have caused,” he said. - ABC