In Papua New Guinea, investigators say they’ve uncovered a racket involving lawyers, bureaucrats and politicians colluding to defraud the state of hundreds of millions of dollars.
Source: ABC Radio Australia
The claim comes after the principal of one of PNG’s biggest law firms was arrested over allegations he was paid by the Finance Department after submitting fraudulent legal bills.
Presenter: PNG correspondent Liam Fox
He’s the principal of Paul Paraka Lawyers, a law firm with 20 offices around the country and more than a thousand employees.
On Wednesday officers from the multi-agency corruption investigation Taskforce Sweep arrested him in a small village two hours drive from Port Moresby.
Mr Paraka was charged with 18 offences including conspiracy to defraud, stealing by false pretence and money laundering.
Taskforce Sweep alleges his law firm was paid around 30-million dollars by the Department of Finance last year after submitting fraudulent bills for legal work performed for the state.
It says the bills submitted by Paul Paraka Lawyers were for cases that were not briefed out to the firm and others that simply don’t exist.
During an address to his staff Mr Paraka said the charges are politically motivated and he’s innocent.
But Taskforce Sweep says it’s only getting started.
Its chairman Sam Koim alleges Paul Paraka Lawyers has been paid more than 100-million dollars by the Department of Finance since 2007.
In a statement Mr Koim says his investigators have uncovered a racket of lawyers, politicians, bureaucrats, court officials, financial institutions and media organisations all colluding to pillage public coffers.
He says many heads will roll as more suspects are identified.
The Finance Minister James Marape says the Taskforce’s investigation has shown how large sums of public money can be paid out without the Minister’s approval.
But it’s one thing to arrest someone and lay charges, another to convict him.
The wheels of justice turn pretty slowly in Papua New Guinea and it’ll be some time before Paul Paraka stands trial.
