Post-Courier, 24th October 2013
Prominent lawyer Paul Paraka has been arrested and charged by police and the Task Force Sweep yesterday over fraud allegations involving senor ministers of the O'Neil Government.
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| Paul Paraka with his legal team |
The principal of one of the country’s most prominent law firms, Paul Paraka Lawyers, which consists of 22 established branches around the country, was charged for multiple counts of fraud following months of investigations by Task Force Sweep.
The investigations were conducted into the law firm upon directions by Prime Minister Peter O’Neill on May 13 this year.
Mr Paraka was interviewed and charged with a total of 18 counts relating to an amount of K71.8 million.
He was charged with five counts of conspiracy to defraud under section 407(1)(b) of the Criminal Code Act, nine courts of stealing by false pretence under section 404(1)(a), two counts of money laundering under section 34(2)(a) and two counts of misappropriation under section 383(1)(a) of the Criminal Code Act.
Police said Mr Paraka was arrested in a dawn raid at Gavuone village, Kupiano, Central Province (about two and half hours drive from Port Moresby.)..
MR PARAKA, who police believed has been in hiding after failing to obtain a stay order in court, gave in when police closed in on him yesterday morning.
It was alleged that Mr Paraka dishonestly obtained monies that he did not deserve, according to a statement by Task-Force Sweep.
Task Force Sweep alleges that when the law firm retainer agreement with the State was terminated on 2 November 20, 2006, the law firm instituted two separate judicial review proceedings.
Mr Paraka in those two proceedings, obtained orders for payment of outstanding bills totalling approximately K12.9 million. The State appealed those decisions and obtained stay orders from the Supreme Court in November 2006 and early 2007, which effectively prevented any payment to the law firm.
It was alleged that despite the existence of the Supreme Court orders, the law firm still collected payments from the Finance Department but through other law firms and its nominee company, namely PKP Nominees Ltd.
It was further alleged that Mr Paraka did so to avoid the legal implications of the Supreme Court orders.
After he was interviewed at the National Fraud and Anti-Corruption Directorate at Konedobu and was formally charged, Paraka was taken to the Boroko police station cells to be detained. It is understood police refused bail.
The investigations were conducted into the law firm upon directions by Prime Minister Peter O’Neill on May 13 this year.
Mr Paraka was interviewed and charged with a total of 18 counts relating to an amount of K71.8 million.
He was charged with five counts of conspiracy to defraud under section 407(1)(b) of the Criminal Code Act, nine courts of stealing by false pretence under section 404(1)(a), two counts of money laundering under section 34(2)(a) and two counts of misappropriation under section 383(1)(a) of the Criminal Code Act.
Police said Mr Paraka was arrested in a dawn raid at Gavuone village, Kupiano, Central Province (about two and half hours drive from Port Moresby.)..
MR PARAKA, who police believed has been in hiding after failing to obtain a stay order in court, gave in when police closed in on him yesterday morning.
It was alleged that Mr Paraka dishonestly obtained monies that he did not deserve, according to a statement by Task-Force Sweep.
Task Force Sweep alleges that when the law firm retainer agreement with the State was terminated on 2 November 20, 2006, the law firm instituted two separate judicial review proceedings.
Mr Paraka in those two proceedings, obtained orders for payment of outstanding bills totalling approximately K12.9 million. The State appealed those decisions and obtained stay orders from the Supreme Court in November 2006 and early 2007, which effectively prevented any payment to the law firm.
It was alleged that despite the existence of the Supreme Court orders, the law firm still collected payments from the Finance Department but through other law firms and its nominee company, namely PKP Nominees Ltd.
It was further alleged that Mr Paraka did so to avoid the legal implications of the Supreme Court orders.
After he was interviewed at the National Fraud and Anti-Corruption Directorate at Konedobu and was formally charged, Paraka was taken to the Boroko police station cells to be detained. It is understood police refused bail.
He faces:
- Five counts of conspiracy to defraud;
- nine counts of stealing by false pretence;
- two counts of money laundering; and
- two counts of dishonestly applying-misappropriation.
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