Expat faces fraud charges

 By ARMSTRONG SAIYAMA

AN expatriate businessman is facing 54 fraud-related charges involving more than K10 million earmarked for the Nuku district in West Sepik as development grant.

Police investigators yesterday charged Ponnunchammy Nagendirarajah, 65, and detained him at the Boroko police station.

Detective Sgt John Kuno said Nagendirarajah owned Power Invent Ltd and Alternative Engineering Services companies. 

The company directors are Nagendirarajah and his wife Mary Marscilla, who is based in Australia.

He said police found that the companies had no office address, residential location, employers and machineries.

The companies were contracted by the Nuku district administration to build roads, schools, markets and public servants’ houses between 2008 and 2010 under the district services improvement fund and district services grant.

Police said K10.8 million was paid to Power Invent Ltd and Alternative Engineering Services to build the roads, schools, markets and public servants’ houses in Nuku. 

“Payments of K50,000 or less were paid by the Nuku district administration on numerous occasions to the two companies,” police said.

Police found out that there no developments done by the companies.

“All the projects were not screened by the Central Supplies and Tenders Board and the West Sepik provincial supply and tenders board,” Kuno said.

Police investigators said there was no meeting by the Nuku joint district planning and budget priority committee to approve the projects.

“There is a breach of the financial management act and the financial instructions, and the DSIP and DG policy guidelines,” he said.