Banker, lawyer deny charges

National, Normal


TWO expatriates charged with 50 counts of conspiring to defraud, 45 counts of misappropriation and one count of falsifying documents appeared before the Waigani Committal court and told the court they had no case to answer.
The two accused are lawyer Erik Andersen of Gadens Lawyers and banker John Maddison.
Their lawyers said the matter leading to the charges against them stemmed from business loan agreements between former MP and businessman Peter Yama and
These agreements allowed for BSP to debit his account when Mr Yama’s business entities had outstanding loan repayments.
The lawyers argued that both Mr Andersen and Mr Maddison “were acting strictly in accordance with a contract freely signed by Neisenal”.
They said “it was not a crime where a party
is acting in accordance with a civil contract (securities).
“There is no criminal intention.”
The submissions before Waigani Committal court principal Magistrate Sinclaire Gora were that in or around 1993.
That was the time when Yama Security Services Ltd, Neisenal No. 77 Ltd, and Smuggler Motel Ltd (the Yama Group) applied to BSP for various loans.
Counsels submitted that in return for the loans, the Yama Group agreed to sign various security documents in favour of BSP called “mortgages” and “fixed and floating charges”.
As security for these loans the Yama Group signed the security instruments in favour of BSP.
The lawyers submitted that under the agreements, the bank shall be at liberty from time to time without further authority
to debit and charge any account of the debtor
or the mortgagor or such other person with all costs charges and expenses legal or otherwise which the bank pay, incur,
or sustain.
They said they were well within these agreements to draw from the Neisenal No. 77 accounts.
They said the charges against them cannot stand, and should be dismissed.
The police prosecution is to make a response.