Corruption case against former prime minister adjourned

By AILEEN KWARAGU
FORMER prime minister Peter O’Neill, charged with misappropriation and official corruption in relation to two diesel generators bought from Israel in 2013, is to appear in the Waigani Committal Court on Oct 22 to hear prosecution’s submission on sufficiency of evidence against him.
Magistrate Tracy Ganaii adjourned for 10 days following a request from the Ialibu-Pangia MP’s lawyer Greg Sheppard.
Police alleged that O’Neill, 55, of Kauwo village in Ialibu-Pangia, Southern Highlands, on Dec 4, 2013, corruptly and unlawfully directed the procurement of K50 million from Treasury to pay LR Group Ltd, a company in Israel.
The payment was for two diesel turbine generators.
It was further alleged that he wrote a letter dated Dec 4, 2013, to acting Treasury secretary Dairi Vele, instructing him to identify K50 million from the 2013 National Budget and have it transferred to Bank of PNG for the procurement and installation of the two generators earmarked for Port Moresby and Lae. It was also alleged in the letter that PNG Power Ltd had been consulted and agreed to the deal.
Allegations into O’Neill’s case also involves Opposition Leader Belden Namah lodging a formal complaint against him in 2014.
Namah alleged that O’Neill had pressured Vele and but failed to consult PNG Power Ltd, the Independent Business Corporation of PNG, the National Executive Council and Central Supply and Tenders Board (now National Procurement Commission).
Police also alleged that Prime Minister James Marape, then the finance minister, issued an approval under the IPBC Act 2002 and Public Finance Management Act 1995 for PNG Power Ltd to enter into the contract.