Former Gulf officials win K800,000 fraud case

THE Supreme Court has found two men not guilty of misappropriating almost K800,000 belonging to the Gulf government in 2015 because they were acting in good faith and on instructions.
Chief Justice Sir Gibbs Salika ruled that Mika Akia, the former managing director of Gulf Economic Development Authority (GEDA), and Willie Simoi, the former general manager of Gulf Investment Trust Fund (GITF), were not guilty of misappropriating K783,195.70 belonging to the State.
Akia, from Maipenairu village Baimuru in Gulf, and Simoi, of Vatuka Island, Kiriwina, in Milne Bay, were each charged with one count of misappropriation. Both denied the charge.
The court heard that from the evidence of a man named Imbi Tagune, Mineral Resource Development Corporation Company had paid a cheque for K2,505,000 into the account of GITF for which both men were signatories.
The men, who were not members of the board of trustees of GITF, transferred K1,019,658 from GITF to GEDA without the approval of the board of trustees on instructions from the governor at the time Havila Kavo, with the then acting provincial administrator (PA) Tore Hasu. The fund was to assist the provincial and local level government run its assembly meetings.
Hasu’s instructions came through a letter dated Jan 6, 2015, which was used as evidence. By virtue of his office, Hasu was a member of the board of trustees of GITF as was the governor. However, his letter did not say that the board had directed the transfer of the money.
The court was told that Simoi confirmed in his evidence that the money was transferred but how it was used was for Akia to explain.
Akia’s testimony supported the evidence that part of the money was used to fund the provincial government assembly meetings to pass the budget. He said some of the money was used to pay service providers.
The State prosecution alleged that out of the K1,019,658 transferred, K783,195.70 was misused. Akia refuted the allegation and provided receipts and service providers’ invoices to show the money was not misused.
Sir Gibbs said there was no clear evidence of who the trustees of the GITF board were.
“It appears that the governor and the acting PA were the only trustees available to make vital decision as far as GITF was concerned,” Sir Gibbs said.
“The two men were acting on the instruction of their political masters when in fact they were the only members of the board.
“I find that other elements of the case have not been proven beyond reasonable doubt. The two men acted in good faith, on instructions from the governor and acting PA.
“Accordingly, I find them not guilty as charged.”