O’Neill to stand trial

Court upholds misappropriation, official corruption charges

By BOURA GORUKILA
A MAGISTRATE has ruled that there is sufficient evidence to commit former prime minister Peter O’Neill to trial on the charges of official corruption and misappropriation.
The charges relate to the purchase of two diesel turbine generators for K50 million from an Israeli company (LR Group Ltd) in 2013.

Magistrate Tracy Ganaii dismissed a charge of conspiracy against O’Neill because of insufficient evidence.
O’Neill is to return to court next Wednesday to submit his statement on the ruling to commit him to trial.
Magistrate Ganaii based her decision on the statements of 22 witnesses which the police submitted to the court.
The main complainant was Belden Namah, the then opposition leader.
Others included Kerenga Kua as the then justice minister and attorney-general, James Marape as finance minister, Don Polye as treasury minister, public servants and four police officers.
Police alleged that O’Neill, as PM, had directed Treasury secretary Dairi Vele in a letter dated 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 Port Moresby and Lae.
The allegation is that O’Neill had failed to seek the view and approval of PNG Power Ltd, the Independent Business Corporation of PNG, National Executive Council and the Central Supplies and Tenders Board.
In addition, the Appropriation Act 2013 did not have the estimated cost of the generators in the list of approved expenditure.
In compliance with O’Neill’s directives, a cheque of K50 million was raised on Dec 18, 2013, and paid to the Bank of PNG where it was cleared and transferred to LR Group Ltd on Dec 20 that year. A tax clearance was sought by the Treasury Department in the pretext that there was an existing contract signed by LR Group Ltd and the State and the transaction would take place overseas which required an exemption.
The K50 million was paid to LR Group Ltd without any contract properly procured.
Police also alleged that O’Neill used his position as prime minister to legally justify the payment by sponsoring a submission to Cabinet on March 5, 2014 seeking approval for PNG Power Ltd to pur-
chase the two generators from Israeli Electricity Corp for K94 million without disclosing the K50 million already paid to LR Group Ltd. The NEC approved PNG Power Ltd to enter into a contract of sale with Israeli Electricity Corp for the purchase of the generators for K94 million.
Then finance minister James Marape issued an approval under the Public Finance Management Act 1995 for PNG Power Ltd to enter into the contract.
Meanwhile, O’Neill said outside court yesterday that he was looking forward to appearing in the trial.
“We will present our evidence in the National Court.
“We look forward to appearing and of course arguing this case in the National Court,” O’Neill said.