Aussie faces corruption charge

AN Australian businessman based in New Britain has been arrested in connection with an investigation into corruption.
Officers from Task Force Sweep, supported by police, arrested Timothy Rowland at Kokopo, East New Britain,  yesterday.
The 49-year-old Rowland is the general manager of Sarakolok West Transport (SWT).
He has been charged with several offences including uttering, false pretence and conspiracy to defraud the Manus provincial government.
The company allegedly tried to extort K9.925 million for a boat (mv Murunga II) that had already been purchased for K7.5 million by the provincial government.
It is alleged that the company was engaged by the Department of National Planning and Monitoring last year to purchase and deliver a boat valued at K7.5 million to the provincial government.
SWT received the funds in full.
SWT purchased the vessel but did not deliver it. Instead it claimed that variations (not asked for or approved by the Manus provincial government) had to be done to the vessel.
After having received the vessel, SWT then sought to extract an additional K6.5 million from the provincial government over and above the original K7.5 million purchase value to deliver the vessel.
SWT also sought in the same contract of sale to receive K3.425 million for variations made to the structure of the vessel.
It is alleged that that Rowland actively used his position to force the provincial government to accept the vessel and variations and pay K9.925 million for the delivery of the vessel.
Sarakolok is owned by businessman Eremas Wartoto.
Wartoto was last year charged with misappropriating millions of kina earmarked for the renovation of a high school.
Task-Force Sweep chairman Sam Koim said Roland, who has been released on bail, remained innocent until proven otherwise by the court of law.