O’Neill denies allegation

By KARO JESSE
FORMER prime minister Peter O’Neill has denied in court the allegation that he had directed “in the abuse of his office” the purchase of two diesel generators for K50 million from Israel in 2013.
According to the indictment document signed by Public Prosecutor Pondros Kaluwin yesterday, O’Neill had between Dec 3 and Dec 31, 2013, “directed to be done in the abuse of the authority of his office as prime minister”, the purchase of two 15mw diesel turbine power generators for K50 million “without complying with the proper procurement process as is required under the Public Finance (Management) Act”.
O’Neill pleaded not guilty to the allegation before Justice David Cannings.
He was represented by lawyer Greg Sheppard from Young and Williams Lawyers, who argued that the case be thrown out as the indictment was “defective”. Police investigating officer Snr Sgt Pious Peng told the court that he found out during his investigation of the case that there was no proper process and procedure followed in the procurement of the money needed to buy the two generators from Israeli company LR Group Ltd in 2013.
Police alleged that O’Neill had written a letter to Treasury secretary Dairi Vele on Dec 4, 2013, to identify K50 million from the 2013 national budget and have it transferred to the Bank of PNG for the procurement and installation of the two generators in Lae and Port Moresby.
When cross-examined by Sheppard, Sgt Peng agreed that the letter from O’Neill to Vele was within the context of high-profile meetings including the one between O’Neill and his Israeli counterpart, a memorandum of understanding on power supply and a policy decision.
The trial resumes today.