Friday, May 31, 2013

Papua New Guinea businessman arrested and charged again

Source: Post Courier, Friday 31 May, 2013
Businessman, Eremas Wartoto has been arrested and charged again by the Investigative Task Force Sweep for allegedly defrauding the State of K13.5 million, funds meant for the rehabilitation of rundown agricultural plantations.
According to the Task Force Sweep team, Mr Wartoto has so far been charged for five cases in relation to misappropriation of public funds totaling more than K33 million.
The Sweep team says Mr Wartoto has more cases to answer. He was previously committed to stand trial in absentia for a case involving funds meant for the rehabilitation of the Kerevat National High School in East New Britain under the RESI program administered by the Department of National Planning and Monitoring.
Sweep chairman Sam Koim said in a statement yesterday: “Just yesterday (Wednesday), Minister for National Planning and Monitoring (DNPD, Charles Abel) tabled a report concerning more than K500 million that was expended on the National Agricultural Development Project (NADP) and coincidently, Mr Wartoto is allegedly one of the beneficiaries of those funds.” 



The first case relates to a payment of K6 million by DNPM in May 2010 to rehabilitate the Lindenhafen Coconut Plantation situated in the Gasmata area of West New Britain Province.
The payment was made to a company called Wild Dog Plantations Limited, whose directors are a driver of Mr Wartoto and his in-law.
After the monies were deposited in the company’s ANZ account, a large chunk of funds were then diverted into Sarakolok West Transport Ltd (SWT), a company owned by Mr Wartoto. None of these funds were used to rehabilitate the plantation.
The second case concerns an amount of K7.5 million which was paid by DNPM in June 2010, only a few weeks after the payment of K6 million to Wild Dog, to a company called Metlik Plantations Limited to rehabilitate the Metlik Plantation, situated at Lombum, the Southern tip of New Ireland Province.


The monies were paid into the company’s bank account held at May Bank. The directors of the company and the signatories of that account are employees of SWT. After the monies were deposited, K5 million was then transferred to SWT on some fictitious contracts for survey services. None of the monies were used for the rehabilitation of the plantation. Chairman Mr Koim said: “As a matter of law, Mr Wartoto remains innocent until
proven otherwise by a court of law.”
“The two cases are glaring examples of paper farmers and front companies feeding off from the funds appropriated for the entire NADP,” Mr Koim said when confirming Mr Wartoto’s arrest. “Besides these cases, we’ve come across cases where funds were given to build coffee factories in places where the last coffee tree you see is some 100 kilometers away.


“The intentions of the Government may have been genuine but greed, lack of management and monitoring, parking funds in authorities/agencies that lacked competency to manage them and political patronage had resulted in millions of kina being stolen and wasted,” Mr Koim said.

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