O’Neill in court

By BOURA GORUKILA
IALIBU-Pangia MP and former Prime Minister Peter O’Neill appeared in court yesterday charged with misappropriation and official corruption, in relation to the purchasing of two diesel generators from Israel in 2013.
Waigani Committal Court Magistrate Dessie Kaputin Magaru adjourned the case to July 9 to allow police to complete their investigations and present their case to the court.
O’Neill, 55, of Kauwo village in Ialibu-Pangia of Southern Highlands is facing one count of misappropriation and one count of official corruption.
Police allege that on Dec 4, 2013, O’Neill corruptly and unlawfully directed the procurement of K50 million from Treasury to pay LR Group Ltd, a company in Israel, for the two diesel turbine generators.
Police further allege that O’Neill 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 the Bank of PNG for the procurement and installation of the two turbine generators earmarked for Port Moresby and Lae.
He allegedly stated in the letter that PNG Power Ltd had been consulted and agreed to the deal.
In April 2014, Opposition Leader Belden Namah lodged a complaint to police, alleging that O’Neill had pressured Vele to have the K50million purchase executed.
Namah alleged that O’Neill had failed to consult PNG Power Ltd, the Independent Business Corporation of PNG, the National Executive Council and Central Supply and Tenders Board.
It is further alleged that O’Neill then justified the payment by making a submission to Cabinet on March 5, 2014, seeking approval for PNG Power to purchase the two generators for K94million, without disclosing that K50million had already been paid to LR Group Ltd.
Cabinet approved the K94 million payment – K50 million was paid on Dec 18, 2013, and K44million was paid on June 26, 2014.
Then finance minister James Marape issued an approval under the IPBC Act 2002 and the Public Finance Management Act 1995 for PNG Power to enter into the contract with the Israel company.
The allegation is that the K5 0million was paid on a purported contract of sale that did not exist then, and without proper approval.
O’Neill was arrested on May 23 at Jackson Airport on his arrival from Brisbane.
He was charged and briefly detained at the Boroko police station before being released on a K5,000 bail issued by the National Court.
The bail conditions were that he attended all court proceedings, resided at his home at Touaguba Hill in Port Moresby, and to inform the public prosecutor and court registrar if he wants to travel overseas.