Investigation undertaken into the misappropriation and stealing of K268 Million belonging to Community Mine Continuation Agreement Communities in Western Province by Special Police Forensic Criminal Investigation Team which is headed by Commissioner of Police David Manning made two more arrests early this week.
About a fortnight ago, Managing Partner of Young & Williams Lawyers Mr. Gregory James Sheppard was arrested and charged with two (2) counts of false pretense and another 2 counts of conspiracy after his law firm was paid K52 Million from the WPPD CMCA Trust Funds as legal fees.
Two directors of Ok Tedi Fly River Development Foundation Limited (OTFRDF) namely Mr. Boston Kasiman and Mrs. Annie Smerewai were arrested in Ningerum, a sub-station of Kiunga in Western Province at about 4am on Tuesday 02nd February 2021. The suspects were flown to Port Moresby where they were interviewed and each of them were slapped with 15 charges comprising of five (5) counts of false pretense, 5 counts of conspiracy and 5 counts of misappropriation.
Police confirmed that Mrs. Annie Smerewai has been the director of OTFRDF since the formation of the company on 23rd September 2016, and Mr. Boston Kasiman was appointed as director on 10th of July 2019.
Police formally searched the company’s records held with Investment Promotion Authority (IPA) and noted that mandatory forms required by Companies Act 1997, that must be completed and lodged when registering an entity, appointing directors, secretary, shareholders and changing company’s addresses were never completed and lodged with IPA. No such records were found for years covering 2016 to 2020. The changes in the company’s records were simply made through online by the company’s appointed agent Mr. Samson Jubi whilst residing in Cairns, Australia.
In the absence of the compulsory company forms, the manner in which the directors, shareholders, and secretary of OTFRDF were appointed are highly suspicious and questionable. Police developed an impression that 147,000 plus people of CMCA Communities who are owners of the K268 Million WPPD CMCA Trust Funds never authorized the registration of OTFRDF and the appointment of its directors, secretary and sharehoders.
Mr. Boston Kasiman and Mrs. Annie Smerewai were among other directors who were present and passed number of Board Resolutions during two (2) separate Board Meetings held in Port Moresby in 2018 and 2019 to illegally pay total of K268 Million out of the WPPD CMCA Trust Account held with Australia & New Zealand Banking Group (PNG) Ltd.
The following payments were released after the Board Resolutions of the two Board Meeting Minutes, Approved Instruction Application Forms and other necessary documents were submitted to Australia & New Zealand Banking Group (PNG) Ltd by OTFRDF:
| No. | Date of Withdrawal | Amount Withdrawn-Kina | Recipients | Purpose of Payment per “ANZ Payment Instruction Application Form” |
| 1). | 17th August 2018 | K15,000,000.00 | Young & William Lawyers | Legal Fees |
| 2). | 04th September 2018 | K5,000,000.00 | OTFRDF Ltd | For International Draft and Telegraphic Transfer |
| 3). | 23rd December 2019 | K37,000,000.00 | Young & William Lawyers | Legal Fees (Ex. Report & Disbursement) |
| 4). | 23rd December 2019 | K21,000,000.00 | OTFRDF Ltd | Payment to 7 CMCA Regions |
| 5). | 21st February 2020 | K190,000,000.00 | OTFRDF Ltd | Payment to CMCA Family Account |
| K268,000,050.00 | Total withdrawn To Date |
The operations of the WPPD CMCA Trust Account held with Australia & New Zealand Banking Group (PNG) Ltd is administered by the Trust Instrument underpinning the Trust Account. The Instrument issued from time to time clearly stipulates that WPPD CMCA Trust Funds must only be used for funding development projects and programs implemented by Ok Tedi Fly River Development Foundation along the CMCA Communities in Western Province, and not for any other purpose.
The Instrument also outlines that the WPPD CMCA Trust Funds will only be released to Ok Tedi Development Foundation to undertake the approved projects and programs after all the requirements stated therein are satisfactorily complied and approved by Minister for Mining.
Police established that the payments were withdrawn not in compliance with the requirements of the Trust Instrument and the expenditures were not consistent with the spirit, tenor and intended purpose of the WPPD CMCA Trust Funds, and used for purposes contrary to the CMCA beneficiaries.
Police also learnt that none of the directors including the two that were arrested are current formally recognized leaders of the CMCA Communities representing 147,000 people emanating from 158 villages along the CMCA Corridor in Western Province.
Police are now calling on the Chairman Mr. Steven Bagari, Secretary Mr. Samson Jubi and other five (5) Directors of the purported entity OTFRDF who are currently hiding to voluntarily present themselves to the Special Police Forensic Criminal Investigation Team for appropriate inquiry.
2 | P a g e
Commissioner of Police David Manning further said the combined forensic and criminal investigation currently undertaken by the Police are also scrutinizing all payments that were made from K268 Million to certain unrelated individuals and entities. The payees will be asked to provide proof of goods and services that they delivered for the benefit of CMCA Communities, and inquired on how their goods and services were procured by OTFRDF.
