PNG Power: Where’s the money (part two)

By PNG Echo.

The Fraud Squad is either grossly incompetent or corrupt – there is no third way.

The ineffective and ineffectual heads of the Fraud Squad
The ineffective and ineffectual heads of the Fraud Squad

companies related to Mr Tangit [CEO of PNG Power Ltd (PPL)]and his close relatives have received payment of K16 million from from PPL. Combined with the K15 million received from both the [East Sepik] Provincial (K10 million) and [Angoram] District Government (K5 million), it appears that Mr. Tangit and his close relatives have received K31 million through various entities for the period, 19 February 2009 to 30 September 2015.

As CEO of PPL, this represents a serious conflict of interests, even if that were all there was to it – but it’s not – the money has all been paid out, but as of October 2015 there was no evidence of even the commencement of the project referred to anywhere.

Highly confidential (and why’s that?)

The above quote was taken from a 35-page report marked ‘HIGHLY CONFIDENTIAL’ of which I am in receipt.

It was commissioned as a result of questions being asked in parliament as to why, when funds had been allocated and deposited by Members of Parliament into the coffers of PPL for the Rural Electrification Project (RE Project), these projects were not completed, were behind schedule or significantly over budget. It was the July 2015 session of parliament.

In response, on 15 September, 2015, the Minister then responsible, Hon Ben Micah along with Mr Garry Hersey Managing Director (MD) and Chief executive officer (CEO) of the IPBC and Mr John Mangos, then Executive Director of PPL engaged an Australian forensic investigation company to look into allegations of corporate impropriety at PPL.

Déjà Vu

I have read this report in detail, with a pervasive feeling of déjà vu: I’ve heard it all before: it was in different times and different places but a very familiar modus operandi.

It evokes the non-existent Wasa Bridge in Kandep, associated with Don Polye and the non-existent community colleges – a fraud for which the Grand Chief, Sir Michael Somare and certain members of his family have been implicated in the Singapore courts.

Coincidentally (or not?), the RE [non] Project also involves the Somares as the project was to be undertaken in the district of Angoram (Arthur Somare’s seat at the time) and involved the East Sepik Provincial Government.

The Angoram RE Project

It is the K15 million paid out to two contractors to which the report dedicates much investigation.

K10 million was from the coffers of East Sepik Administration that had been deposited by Sir Michael Somare into that account (it is not stipulated under what authority and from whence it came but the K10 million was earmarked for the project) and over K5 million that was received by the contractor from the Angoram District Administration for alleged variations to this non-existent project of which the investigators admitted finding no evidence  (and they looked)

The K10 million remained with the Provincial Government until the contracts to carry out the project were awarded and then it was transferred to PPL.

The report highlights the gross abuses of process that allowed vested interests to win the tendering process and commandeer the project without fulfilling the contract.

The tendering process

Implicated in just about everything – is John Tangit CEO of PNG Power whose ‘wantoks’ were the proprietors of the companies that won the four-part Angoram RE Project – three parts to PNG Engineering – the registered owner being Mr Richard Pii, brother-in-law of John Tangit and one part to Sepik Metal the registered owner being Mr Patrick Wolly Tangit, the brother of John Tangit.

john-tangit-ceo-png-power
John Tangit, erstwhile CEO of PNG Power Ltd.

The investigation team found evidence of John Tangit’s direct involvement with the tendering process on his desktop computer.

What’s more, these two companies seemed to have been made aware of the exact amount of money allocated for the project and their estimates coincided exactly (similar to insider trading). The three-parts of the project for which PNG Engineering won the tender were split into K3 million each, notwithstanding the very different parameters of each individual part. In other words the tender was neither accurate nor competent.

Further to the questionable estimates of PNG Engineering, the investigation teams noticed an assessment of 15/15 that had been awarded by the tenders’ assessment team to PNG Engineering for experience, a ridiculous score when the company was only five months old.

As for Sepik Metal, the other successful tenderer, they did not even gain the highest score in the assessment but got the contract because they came in exactly on budget – a little insider knowledge goes a long way.

As such, it could not be confidently asserted that either of these two companies were the best companies for the job regardless of conflicts of interest.

What’s more, on digging deeper into these two companies and their affiliates, many more links of John Tangit’s pecuniary involvement were uncovered.

John Tangit has been much more brazen even than Don Polye was when he awarded the Wasa Bridge contract to a crony – at least he didn’t ostensibly hand the contract to himself.

There’s nothing new here

Of the three issues, Wasa Bridge, Community Colleges and now the Angoram RE Project, there is nothing new.

In Kandep, an estimate K71 million has been allocated to the project and the contractors – and no bridge.

In 17 districts of PNG a whopping K156 million has been allocated and spent – and not one Community College to show for it. (“Leave the Grand Chief alone – he’s the Father of the nation,” you say– where’s that ironic font?)

In comparison, the K31 million gone missing from the Angoram RE Project is a mere bagatelle but a huge amount none the less in any context, but especially in one where many people exist on a couple of kina a day and women still die in childbirth at alarming rates through lack of governmental services (maybe in Angoram it’s from lack of electricity.)

This was brutally brought home to me recently when I heard that there was a drive to vaccinate potential mothers in PNG against tetanus. What on earth for?

In my world, tetanus is not considered a risk factor for birthing mothers. But it is where mothers habitually give birth on the ground in the dust and the dirt or the mud and the filth.

Yet here we are – talking of K31 million as if it were nothing – because everything is relative and the relationship of various acts of thievery is regularly and usually counted in millions in PNG.

To date, no one has found a way or a will to successfully prosecute these crimes. Why not?

Inadequacy of the agencies of the state.

For a journalist, once is an incident, twice is suspect and by the third time, it’s a trend.  And this mode of corruption is quite the trend in PNG. Yet it’s brazen, and not even particularly sophisticated.

What’s more, in two of these cases, there has either been a very competent Singapore court (Community Colleges) that has done the hard investigative work or a thorough investigation by a reputable independent investigator (Angoram RE Project).  As for the Wasa Bridge, if the authorities wanted some evidence of where to look – they could do worse than start with PNG Echo’s own investigation.

Yet it doesn’t happen, does it?  Why not?

If the agencies of the state, and the state itself, cannot recognise this brazen and obvious trend and put in place ways to successfully prevent and prosecute the crimes, then the agencies are either incompetent or corrupt themselves.

I find it hard to believe that in the PNG Power saga ,all Fraud Squad’s energies were put into prosecuting John Mangos for alleged visa infringements and an alleged K62,000 for which there was no viable evidence – Mangos would argue that it doesn’t exist – yet with all the credible evidence available to them – nothing has been done on the missing millions.

I re-iterate – the Fraud Squad is either grossly incompetent or corrupt – there is no third way.

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The PNG Power saga (Part 1)

By PNG Echo

It has been difficult to unravel the many and varied thrusts and counter thrusts of the cases of John Mangos and John Tangit when they were both working at PNG Power Ltd (PPL). So, perhaps it’s best to start with the current state of play and work backwards.

b57ded_30ee39e57f0c419497561345ba026257-jpg_srz_233_350_85_22_0-50_1-20_0
John Mangos

John Mangos was charged twice with various offences, firstly relating to his employment contract with PPL and secondly with the allegedly illegal payment to a third party amounting to K62,000. Neither raft of charges got past a committal hearing where the both were found to be lacking in evidence. They were thrown out. Mangos is no longer with PPL.

tangit-1-1
John Tangit

John Tangit, having been stood down then reinstated, only to be terminated and who is implicated in corruption amounting to millions of dollars (by an independent investigation commissioned by Kumul Holdings and undertaken by a reputable Australian firm of investigators) is now back as at PPL (unconfirmed) having faced no criminal charges whatsoever – scot free – for now.  How can this be?

From this information alone, it is reasonable to assume that the charges against Mangos were specious – and that’s certainly what the courts found when they threw them out.

Matthew Damaru
Matthew Damaru

It was Tangit that was the informant who commenced the second raft of charges against Mangos in a letter at the beginning of March this year, that he copied to various people, including the then appropriate Minister Hon William Duma, Paul Nerau, Chairman Kumul Holdings and Fraud Squad officer, Matthew Damaru – that stalwart supporter and enforcer to Sam Koim and the Task Force Sweep team.

So what would have precipitated this malicious and abortive prosecution?

Why would these Fraud Squad officers, who are lauded as exemplary and expert investigators by many, instigate proceedings against someone with so little and such flimsy evidence?

Sam Koim
Sam Koim

It just could be because the perception of integrity and competency is, in reality…well…just perception. The competency and the motivations of these officers has been seriously impugned by the fact that they, along with Sam Koim’s Task Force Sweep, have lost up to 50% of their cases at committal.  Is this incompetence or something far more sinister – because it is either one or the other, there is no third way.

It seems the malicious litigation against Mangos was all to do with the findings of the abovementioned commissioned investigation that Mangos, as Director of PPL, was about to act on.

You see, the Mangos’ arrest and charges strikes a familiar chord – there is a precedent . It has all the hallmarks of a pre-emptive strike to suppress information becoming public – as surely as the ‘arrest’ of Tiffany Twivey was.

NEXT PART: What Tangit did and how did he get away with it?  The case against John Tangit

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More Fraud Squad cases unravel

By PNG Echo

What do Attorney General, Ano Pala, Aloysius Hamou and Francis Potape have in common?

Hon Francis Potape - the latest case to be overturned through the illegal activities of the Fraud Squad
Hon Francis Potape – the latest case to be overturned through the Fraud Squad’s illegal collection of evidence.

Well, while the recent circus that was the Vote of No Confidence was keeping the whole nation entertained and distracted, in the nation’s courts, the three, abovementioned, gentlemen’s criminal charges were being overturned, quashed, and disallowed.

All three were cases being prosecuted on behalf of the Fraud Squad – featuring Messrs Gitua and Damaru.

These cases have been variously found to be incompetent, ill–conceived, or both as indeed was the case against Justice Sakora – thrown out too.

Lawyer Tiffany Twivey - case still to be heard
Lawyer Tiffany Twivey – case still to be heard

Other Fraud Squad cases still to be decided are that of lawyer Tiffany Twivey, John Mangos of PNG Power and the Prime Minister himself.

Given the precedents of Fraud Squad incompetence and overconfidence in their ability to influence the courts, that these cases should go the same way is more than likely (except if Justice Colin Makail is hearing them, that is)

The Fraud Squad are not conducting legitimate investigations into corruption but overseeing a witch-hunt.

It’s politically strategic

Messrs Damaru and Gitua of the Fraud Squad.
Messrs Damaru and Gitua of the Fraud Squad.

These rogue elements in the police force are aiding and abetting those with a political agenda to effect that agenda, illegitimately, through the courts and these three recent cases illustrate that all too well. See the details here

It’s the premise that those charged with an offence occupying high office should step down that excites the Fraud Squad and their political sponsors and urges them on to more spurious arrests.

Enough arrest warrants and they could empty the parliament and remove all the judges that they are finding unco-operative. (Was Sakora’s arrest meant as a warning to the others?)

Attorney General Ano Pala arrest warrant quashed- his actions were incapable of being criminal
Attorney General Ano Pala arrest warrant quashed- his actions were incapable of being criminal

Indeed, had the Attorney General stepped down on his arrest warrant being effected his electorate would have been without a member for the last two years and the national parliament would have been deprived of his services. And all for specious charges that held no water (as was found in the judgment).

But it is the ‘step down’ demand on the Prime Minister, in particular, that has culminated in the opposition seeking the court’s aid to force a Vote of No Confidence in the parliament – a vote that proved to have no chance of getting up – and the Supreme Court complied.

There is considerable debate in PNG as to whether the Supreme Court overstepped their jurisdiction and breached the separation of powers.  More money will no doubt be expended on finding the answer to that.

That is, more money than the compensation likely to be claimed by all of those who were burned by the Fraud Squad’s incompetence and misguided zealotry.

These men of the Fraud Squad may be presenting themselves as God’s police; occupying a moral high ground that they have personally defined, but in actuality they are nothing short of loose cannons and dangerous vigilantes.

Kerenga Kua, a prominent opposition member
Kerenga Kua, a prominent opposition member

The political opposition is looking to the nation’s courts to effect a political solution that they are incapable of effecting in legitimate, political ways.

God help us all, if the courts co-operate any further – and yet, the three decisions this week give me hope that the law will triumph over vested interests.

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