|
Bank boss summoned to explain K12million
loan
By CLIFFORD FAIPARIK
WESTPAC Bank managing director Ross Hammond has been summoned to appear
before the Pacific Balance Fund Inquiry to explain a K12 million loan
made to Melanesian Trustee Service Limited.
Senior counsel for the inquiry Joseph Yagi said yesterday that Mr
Hammond and three of his senior officers were summoned to explain the
manner in which the loan was made to MTSL in August 2005.
“According to documents in our possession, the loan was made with PBF
assets as guarantee. We want to know if it was proper for MTSL to use
PBF assets as guarantee to obtained that loan.”
The inquiry resumed at the Muruk Building in Waigani after a two-month
break.
It wants to determine:
l Whether this loan and a placement of K5 million as security is loss of
interest/income thereof to PBF and improper;
*Whether the redemption and divestment by MTSL
of one million units in PBF to repay the loan was proper; and,
*Whether the K800,000 consultancy fee paid to
John Sanday out of the K12 million loan was proper.
Mr Sanday was a former consultant involved in the corporatisation of
Investment Corporation of PNG.
The PBF inquiry chairman, retired justice Don Sawong adjourned the
hearing for an indefinite period to await instructions from Mr Hammond
for a convenient time to appear.
Meanwhile, Goiye Gileng, lawyer for Mineral Resource Development
Company’s managing director Francis Kaupa has sought an adjournment
in order to make his client’s submission next Tuesday.
Mr Gileng said he would make a submission denying that allegations by Mr
Sanday that his client had received K35,000 in cash from him (Sanday)
in Brisbane, Australia, in September, 2005 by blackmail.
Mr Gileng also obtained a transcript of Mr Sanday’s interviews from Mr
Yagi in order to prepare his submission.
Mr Sanday, a Fiji-Indian, had alleged that on Dec 14 last year in
Brisbane, Mr Kaupa, Pacific Equities & Investment Limited managing
director John Ruimb and a senior executive from the Motor Vehicle
Insurance Limited (named)) had demanded their shares respectively for
pushing for his
K800,000 consultancy fee.
Mr Sanday had alleged that his consultancy fee was approved during the
MTSL board meeting in Brisbane on Aug 12, 2005.
Mr Sanday had alleged that he paid K130,000 in cash to Mr Ruimb, bought
a vehicle worth K180,000 for the MVIL officer and paid about K35,000 in
cash to Mr Kaupa.
Mr Sanday alleged that he began to realise at around Sept 28, 2005 the
reality of these threats when his visa to enter PNG was not approved by
the Immigration officers in Brisbane.
Mr Sanday had alleged that he had no choice but to meet their demands
since he had been residing in Port Moresby since 1997 and is married to
a Central province woman.
Mr Sanday had alleged that he had returned to reside in Brisbane to
avoid threats in relation to this inquiry.
Mr Ruimb denied his involvement in that allegation when he appeared
before the inquiry on Dec 20 last year.
 
|
