Aussie banker arrested again

AN expatriate banker was re-arrested and locked up at the Boroko cell late yesterday by police after he was alleged to have conspired with others to prevent a K7.6 million payment to Yama Security Service, a company owned by Madang businessman Peter Yama.
John Maddison, 57, of Melbourne, Australia, attached with the Bank South Pacific was arrested and charged mid last year with 96 counts of alleged fraud and misappropriation of about K1.3 million belonging to a subsidiary company of the Yama Group of Companies.
He was taken to court and was release on a K10,000 bail.
While the matter was pending in the comitial court, he was re-arrested again yesterday and charged for perverting the cause of justice, contrary to section 218 of the Criminal Code.
He was refused bail by police.
Police alleged that Maddison conspired with others again and allegedly used falsified documents containing fix-floating charges against Mr Yama before the National Court to stop the K7.6 million payments, which a recent Supreme Court decision ordered Motor Vehicle Insurance Limited (MVIL) to pay Yama Security Service (YSS).
The court battle between MVIL and YSS was first instituted in May 1999 when YSS took MVIL to court to claim damages over breach of contract.
The matter lasted for almost 10 years, and recently, the Supreme Court, at its final stage, ordered MVIL to pay the amount with interest to Mr Yama.
Mr Yama went to court again and instituted garnishee proceedings against MVIL when MVIL failed to make the payment as ordered by the court.
But in court, MVIL denied owing money to YSS and Mr Yama and the matter was set to go for a full trial.
MVIL relied on affidavits of Mr Maddsion, and the alleged falsified fix-floating charges to stop the payment of the money to YSS.
A complaint was laid by Yama, and the police Fraud squad made the arrest of Mr Maddison yesterday.
A member of the Fraud Squad said last night some prominent nationals also face arrest over this.