All road leads to the Prime Minister - Big money and massive kickbacks undermine good governance

By EDDIE MOSES

A leader must not ‘place himself in a position in which he has or could have a conflict of interests’ and ‘shall not use his office for personal gain’ or ‘enter into any transaction or engage in any enterprise or activity that might give rise to doubt in the public mind’, Section 27 of The Constitution of The Independent State of Papua New Guinea.

Leaders in democracies around the world resign when their conduct gives rise to doubt in the public mind. In PNG such leaders are always innocent and are instead subjected to ‘administrative inquiries’ and consequently cleared by heavily compromised and weakened oversight and regulatory institutions of state. Very few have been convicted by the courts. A good many cases are pending further futile deliberations. 

Investigations begun four weeks ago into the sale of the iconic Crowne Plaza Hotel (The Sunday Bulletin; 04/11/18) revealed that many situations of conflicts of interests exist and are tolerated within the executive arm of government. Insiders alleged an entrenched culture of massive kickbacks for favourable considerations in resource exploitation; including government supply and infrastructure contracts; are open secrets. 

“Publicly available records clearly show the relationships between a few ministers and wealthy businessmen. The Prime Minister is right up there as well. Abuse of office is so obvious, it is sickening,” an evidently angry insider spit out in disgust.

Vanimo-Green River MP, Belden Namah’s call for leaders and public office holders to rescue the country from massive corruption (The Sunday Bulletin; 11/11/18) was in reference to this existing situation. 

Our findings reveal that companies mentioned in The Guardian-PNGi story (12th Nov, 2018), which incidentally, was termed as ‘fake news’ by the PM’s office, have links to the Prime Minister. 

Ethical considerations such as whether it is proper for senior political figures to retain large business interests and/or whether a Prime Minister; even after declaration of his assets to the Ombudsman Commission, and even after he absents himself from the decision making process of the NEC; is it proper if he benefits directly or indirectly from decisions made by his government? These and other issues are being heatedly debated on social media and in the corridors of power.

The Guardian-PNGi story relates that Wild Cat, the company linked to the PM, in a Joint Venture partnership with Golding PNG Ltd, was awarded a $32.86m (K111m) Asian Development Bank contract to build 12 bridges in West New Britain province in 2014. A year after awarding of contract, ADB inspectors found that work had begun on only three of the 12 bridges despite 60 percent of money paid. 

ADB then asked Department of Works to monitor progress of project and temporarily suspended further payments for lack of progress. Shortly thereafter the PM is said to have sold his shares in Wild Cat and the company changed its name to Construction and Procurement Services Ltd in October 2016. In August of 2017 an ADB report into the procurement for the project outlined a series of issues with the awarding of contracts, including deficiencies in financial management and potential integrity violations. For completion of the project ADB awarded a further contract worth $14.328m (K48m) in June this year to Chinese state owned company China Jiangsu International ETCG Ltd.

Our findings; with invaluable input from PNGi, show that firstly Construction and Procurement Services Ltd is on public records as a company owned by Theophilus George Constantinou. Sir Theo as he is known these days also owns 

The Airways franchise and The Alotau International Hotel, scene of the much vaunted Alotau accords. He is on record as being a director of Construction and Procurement Services Ltd since 15/09/2016. Sir Theo is also the owner of Hebou Constructions and the Monier Group of Companies amongst others.

The Managing Director of China Jiangsu, a Mr. Hao Zhong (Meck) Luo, is a known business associate of the Prime Minister. His company is alleged to be the contractor currently building the new Headquarters for Remington, the Prime Minister’s company (for an undisclosed amount), along the Poreporena Freeway next to CSTB building. 

A signed letter, dated 29Th June 2016, to Mr. Isaac Lupari, Chief Secretary of the Prime Minister’s Department, suggests a long and fruitful business relationship between Mr. Meck Luo and the Prime Minister. Contents of the letter state China Jiangsu International (PNG) had quite a large investment in PNG; had done a lot of projects in the remote areas for AUSAID, ADB, EU and World Bank in the 19 years it had been in PNG. 

“The Honorable Prime Minister for Papua New Guinea will have his state visit to China on the 5th of July 2016, we much appreciate if you can put our chairman Mr. Xiang Feng Peng and our country Manager Hao Zhong (Meck) Luo in the delegation team in the business parties for this state visit trip.” Meck Luo signed the letter.

These two wealthy businessmen are tied to Paradise Breweries, an IPA registered company incorporated on 15th April, 2015. Paradise Brewery, formerly known as Tannaset Ltd. Registered office at Ground Floor Investwell Building, Sect 38, Allotment 30, Cameron Road, Gordons, NCD. One Peter O’Neill is listed as sole shareholder with 101 shares. He was appointed Director on the 19th of January 2018 but resigned six months later on July 6th still retaining sole ownership of the company.

Listed Directors include; Ian Jepson(PNG),MD of Global Construction and Air Niugini Board Member, appointed 6th July 2018;Hao Zhong Luo aka Meck Luo (China), Country Manager, China Jiangsu, appointed 6th July 2018; Tiong Sii Huang aka Dato (Malaysia), timber tycoon and new owner of Crowne Plaza Hotel, appointed 10th August 2018; Jin So Poh aka Jimmy Poh aka Medicine Man (Malaysia), MD of the controversial Borneo Pacific Pharmaceuticals; Darren James Young (New Zealand), Former Executive Director of Hebou Group and current MD of Kumul Consolidated Holdings, amongst others.

“Being business associates does not necessarily give rise to a situation of conflict of interests. However, if the sole owner of Paradise Breweries sits in the highest office in the land as Prime Minister, and with the inherent powers associated with that office, super massive doubts on conflict of interests is raised in the minds of the public,” a very senior insider stated.
The number and value of recent infrastructure contracts awarded to companies these respective directors’ are associated with will inevitably point to that reaction in the public mind.