Two found guilty in K5mil case

By TREVOR WAHUNE
THE National Court in Waigani yesterday found two men guilty of misappropriating and dishonestly applying to their own use K5 million belonging to the State.
Deputy Chief Justice Sir Gibbs Salika found David Kaya and Philip Kaman guilty of misappropriating
K5 million Oct 1, 2014, and May 3, 2015.
The money was paid under the name of Paiso Company Ltd as compensation for landowners of the East Awin area in Western as an outcome of the State acquiring customary land in 1987 to resettle refugees from West Papua.
The K5 million payment was a part payment from a total of K20 million.
The court found that the payment was made under the instruction of Kaiya to have the money deposited into the trust account of Kaman and Company Lawyers, a law firm owned by Kaman. Kaya, from Goukana village, Iowara in Western, was chairman of Paiso Company Ltd. He was following up on compensation claims on behalf of the landowners.
The court found that no beneficiary landowner received payments from Paiso Company Ltd and Kuman and Company Lawyers.
Kaya, in defence, said he had the right to use the money because he had the power of attorney and he had the authority of the people.
Sir Gibbs told Kaya that a power of attorney was a legal document that allowed one person to act for another person, but the authority came with duties and responsibilities.
“The attorney – both legal duty to the principal and the duties granted to him by the power of attorney document – can be withdrawn if the person granted power has abused it,” Sir Gibbs said.
When asked where the money was spent, Kaya said he had used it to repay debts he had owed service providers. He said the debt included accommodation, car rentals and loans from different people. The court found no proper records and account of those dealings.
The court found that on Oct 17, 2014, after the payment was made, the money was transferred to various accounts.