Who is really running Papua New Guinea? Asks social media commentator and Madang MP Bryan Kramer

WHO IS REALLY RUNNING OUR COUNTRY???

By Bryan Kramer - Madang MP and Sensational PNG Social Media Commentator 

I understand there are a number of articles that I have yet to complete but unfortunately recent events have given me reason to write about more pressing issues that is not only of national interest but of national security.

The matters I'm about to write about will be the most compelling, disturbing and complex of all the articles I have written about to date.

A week ago I ran into a friend who asked me a rather confronting question - What do I do to address the security rists that come with the fact that my articles expose high-level corruption

The friend is a foreign national who comes from a region of the world where people who report on similar issues are typically assassinated in an effort to silence them.

My response was I do nothing. Why? Because it is inevitable. Once you accept the fact you will mostly certainly be permanently silenced for a cause you believe in then there is no point wasting time worrying about it. The only issue for me is how much I can achieve before it happens.

I explained to him the real threat is not our corrupt Government as they are typically incompetent, the real threat are foreign nationals who remain in the shadows and pull the strings. It is they who are running our country with a primary interest of ensuring our corrupt politicians remain in power so they have continued access to and benefit from PNG's vast natural resources.

Now it is not to say that all foreign nationals are only in PNG to rip us off as the good majority consider our country as their home and have fallen in love with our people and culture.

However there are those like our corrupt politicians who disregard the plight of our people and are driven by greed and power only to enrich themselves. They do so at the expense of everyday Papua New Guieans suffering and, in many cases, dying, from a lack of basic services.
Repetative
I explained to my friend that when you go head to head with a corrupt Government you will typically be subjected to five stages or risk.

1. The first they will try to buy you off by offering you a bribe or Government contract.

2. Failing stage one, the second being they will try find dirt on you, threatening to expose you if you don't back down.

3. They will threaten you

4 T they will have you arrested on false charges in an effort to use the system to have you locked up.

5. they will have you killed.

I made the point that I had been through all of the first four stages which left me anticipating the fifth.

However the events the last week confirmed I had left out one stage and that this the people you care about would also be targeted.

Only days later a person dear to me started to receive death threats from an unknown number.

On Monday evening on 24th April 2017, the day before I was to nominate, she was tracked down to Pacific International Hospital in Port Moresby where she was seeking medical treatment.

As she walked outside the hospital entrance she was viciously attacked by two men, she was punched to the ground and repeatedly kicked in the head.

Now the circumstances that to led her attack and what followed I will explain in some detail in the articles to come, circumstances that will certainly leave you disturbed.

For now all I need to express is that I suspended my campaign and arranged for her to be removed from harms way for her own safety.

In part 2 of this article I intend to cover evidence that suggests that our Government has engaged foreign nationals to spy on its own citizens, with the capability of hacking and remotely controlling one of most sophisticated phones in the world (I phone 7).

Evidence that suggests that our citizens are being trained by foreign nationals in the field of intelligence gathering, extortion and State sponsored espionage.

I will cover the circumstances that led to my arrest in November 2014 for conspiracy to commit attempted murder in a failed effort to silence me, the evidence that confirms the charges were falsified the people behind it.

I will also cover the introduction of the recently passed cyber-crime the true intent behind the legislation and those who are behind it.

Further I will explain how high-level corruption works in the PNG and how they get away with it. Lastly we answer the question - Is Peter O'Neill really running our country or is he merely a puppet to those he seeks advice from?

Make no mistake that these issues are very real and every Papua New Guinea needs to take stock as it may be only chance to take PNG back.

A post-analysis of Singapore deal: Papua New Guinea Community College Trust scandal - Part 4

by BRYAN KRAMER

THIS is part 4 of a seven (7) part series of articles providing insight into the recent decision (1/9/16) by Singapore Supreme Court to imprison/jail former Chairman of PNG Community College Trust, American, Thomas Doehrman and his Singapore wife Lim Ai Wah for upto 5 years over fraud and money laundering offences.

In part 4 we will discuss the statements made during the record of interview that Singapore Public Prosecutor relied on to secure Doehrman and Lim's conviction (finding them guilty). We will also review their claims directly implicating Grand Chief Somare and his son Michael Somare Jnr

Lastly consider the reasoning why Doehrman and Lim insisted the invoice was for a commission even though the particulars of the invoice clearly stated it was for a contract of equipment.

Following arrest of Doehrman, Lim and Stephen Li Weiming on 25 July 2012 the Singapore Corrupt Practices Investigation Bureau (CPIB) subjected all three to further interviews.

It is normal practice for Police to arrest and charge a person after they believe they have reasonable grounds based on sufficient evidence to prove they committed an offence. They will first consider the circumstances (facts) and the evidence obtained during their investigations to determine which criminal law(s) were broken or offences committed. No person can be charged for an offence not prescribed (written) in law. So Police must be precise which section of the law was breached or offence committed.

In this case Doehrman, was arrested and charged for one count of abatment (the act of assisting someone to commit a crime) by engaging in the conspiracy (secret plan) with his wife Lim and Stephen an employee of ZTE Corporation to falsify a document (invoice) belonging to Questzone Offshore Ltd with the intent to defraud. An offence prescribed under Section 477A and Section 109 of the Singapore Penal (Criminal) Code.

He was also charged with allegedly committing five other money laundering related offences namely:

Two counts of abatment by engaging in the conspiracy with his wife Lim and Stephen to remit (transfer) two payments of $750,000 and $100,000 to an offshore account in Hong Kong, a company account owned by Stephen's wife. (Two counts means committing the same offence twice, one count for each time the same offence was committed, in this case making two unlawful payments to the same person).

He was also charged with three counts of abatment by engaging in the conspiracy with his wife Lim and Stephen to remit (transfer) three payments totalling $784,000 to Grand Chief Sir Michael Somare's Singapore Standard Chartered Bank Foreign Investment Cheque and Savings Account.

Lim and Stephen were also charged with allegedly committing the same six offences.

To prove these charges CPIB needed to establish or produce sufficient evidence beyond reasonable doubt that all three played a part in committing the six offences.

The main charge was abatement in the secret plan to falsify documents (invoice & sub-contract) with the intent to defraud.

So if the Police or Prosecution fail to prove the first charge then the remaining five charges in relation to remitting proceeds of crime would also fail because if you can't prove the proceeds were obtained from criminal conduct then you can't be charged for unlawfully transferring it.

To prove the first charge of falsifying documents they needed to prove the invoice was falsified with the intent to defraud.

A key piece of evidence was the invoice itself stated it was for "Contract for Supply of Equipment" for Community College Project. The second was the fact the invoice was apparently issued on the back of a sub-contract between Questzone Offshore Pte Ltd and ZTE entitled "Service Contract" Both the invoice and sub-contract were inconsistent.

So how do you prove whether an invoice and sub-contract are genuine or falsified?

Essentially whether the invoice was issued on the back of actual goods or services supplied or intended to be supplied.

When CPIB interviewed Doehrman and Lim's they insisted the payment was was for a 10% commission which was inconsistent with the invoice and sub-contract. This now provided three possible versions behind ZTE making $3.6 million payment to Questzone Offshore.

So why did they insist it was a commission?

There are two means to benefit from the awarding of a lucrative contract, the first being paid a commission for negotiating the terms on behalf of a party and the second being awarded a sub-contract to service it. Many corrupt deals are also facilitated through either method.

When a person or company wishes to sell a property or significant asset they typically engage a sales agent or professional firm to find a suitable buyer and facilitate the sale on their behalf. The agent will have years of experience and a proven track record to justify engaging their services.

The agent's primary role is secure a buyer and negotiate the terms of sale in the best interest/terms for their client. The client and agent will agree on a percentage of commission usually based on a fixed fee or percentage of the sales price. There are industry standards for commission rates so one can ensure the terms are fair and reasonable. The larger the sale the smaller the percentage of commission. A contract involving K120 million would usually involve a 1-2% commission which would still amount to K2.4 million. In this case the commission was said to be 10% US$3.6 million (K12 million) which was not in there interest of the parties involved in the awarding of the contract of $38.8 million contact to ZTE.

The same may apply in the awarding of major contract where an agent or third party plays a direct role in helping a company secure a significant contract and paid a commission or referral fee.

Now an agent or third party becomes unnecessary where parties are known to each other and already entered into formal discussions. No point paying someone a commission for doing nothing.

However when it involves public funds corrupt Government Ministers and officials will typically nominate a company owned by their family, friends or close associates to be appointed as an agent and made to seem like they took the lead in securing the sale or contract. Typically a shell company without any track record and setup for purposes of receiving the commission (kick back).

Once a commission is paid the funds are then laundered through the company and secretly paid to the parties involved. The funds are withdrawn in cash, placed in a bag or large brown envelope and delivered to the Minister or Government officials involved - making it untraceable.

The second method involves awarding a sub-contract to a company that will also be owned by their family, friends or close associates to service the main contract. Where the main contractor will be told in no uncertain terms that to ensure they are awarded the main contract a particular company needs to be awarded a sub-contract. The sub-contract company will then take steps to pay the Minister or Government official through secret payments.

Now there will be occasions where the parties involved will nominate a genuine company who has years of experience and proven track record in providing such services. While it maybe owned by a family member or close associate it doesn't make it illegal provided any conflict of interest is declared and they secured the sub-contract based on merit, fair and reasonable commercial terms.

Section 9 of Community College Act states that a member of the trust who in any way directly or indirectly has an interest in a contract or proposed contract shall disclose the nature of his interest and be excluded from any discussion or decision in relation to the contract. Failing to do so would make them liable of fine not exceeding K500. Further any disclosure shall be recorded on the minutes of the meeting.

In this case Doehrman the Chairman of PNG Community College Trust, his wife and Stephen sought to benefit from the awarding of the contract to ZTE. Further Doehrman failed to disclose his interest or exclude himself from the discussion and decision in awarding the US$38.8 million contract to ZTE where his wife had an indirect interest.

So back to the issue why Doehrman and Lim insisted the $3.6 million was a commission, once a contract is awarded and commission paid there is no further obligation to service it thus the one off payment $3.6 million to Questzone Offshore could have been justified. However if it was paid on the back of a service contract and supply of equipment that was never actually provided, evidence to the fact the payment was fraudulent.

So to strike down or defeat the charge of falsifying documents Doehrman and Lim could have argued Lim's sister who raised the invoice made an honest mistake in issuing it for the supply of equipment when it was actually for a commission or referral fee. This issue would have caused doubt in the mind of the Court. With the main charge dismissed the remaining fives charges would have also failed.

What Doehrman and Lim were not aware of was that by insisting it was a commission they unwittingly provided actual details of their conspiracy and discussions to which parties were in agreement the proceeds of the commission would be distributed among themselves.

Further Lim disclosed she was acting on the advice of Stephen to setup offshore company in British Virgin Islands for the purpose of receiving the commission with instructions to remit funds to a company in Hong Kong (J&M International) set up under Stephen's wife's name including payments to Moox and Grand Chief Sir Michael Somare.

When questioned over the specific arrangements regarding $3.6 million commission she produced a diagram to explain the outcome of a discussion between her husband (Doehrman) and Stephen.

"I [Lim] should be given $950,000"..

.."$850,000 stated in the above diagram refers to an amount to be given to ZTE" Stephen had asked me to transfer $750,000 first to J&M International remaining $100,000 to be sent later.."

"3 payments labelled Housing in the diagram were made for purpose of PM PNG to pay for his house and his son to pay for a separate house."

"PM PNG had told me and my husband on a few occasions that he needed money to pay for his house and that he was planning to borrow money from banks for that reason" Hence the $280,000 and $244,000 stated in the diagram were meant for PM PNG's use housing loans."

"Sometime in 2010 I received a call from the son of PM PNG asking me to send money to him. I told him the amount set aside for him was $280,000 but since he did not have an account in Singapore, I wrote a cheque to PM PNG's bank account and told him to pass the money to his son."

Furthermore she also acknowledged no actual service or sub-contract existed between ZTE and Questzone to supply equipment or services.

During the course of the trial Doehmran submitted in his no case submission that the payment of $3.6 million by ZTE was indeed for commission paid to Lim to give up her business in Phase 1 of the Community College Project. With ZTE taking her place as the incoming main contractor for Phase 2. The Questzone contract was structured and prepared by ZTE and $3.6 million paid pursuant (according) to a legitimate purpose, which was made known and agreed to by all parties.

To refute this claim the Prosecution relied on the evidence submitted by Richard Robert Bussierre an American national who was Chief Technology Officer of U-Konekt Technologies Ltd. A PNG company that was contracted to carry-out similar work for ZTE on Community College Project. He testified Questzone Offshore and U-Konekt contracts were similar. However he never observed anyone from Questzone carry out any activity while he was working on the Project. He stated in no uncertain terms he believed the Questzone Offshore contract "was a fraudulent contract"

In part 5 we will finally discuss in some detail the many inconsistencies in the statements submitted by Doehrman and Lim. Whether the evidence implicating Somare and his son Michael Jnr (Moox) is credible and sufficient to bring criminal charges against them in Singapore. Lastly whether any criminal charges can be pursued against Somare in PNG in relation to Singapore Supreme Court ruling.

Photo: Doehrman and Sheppard meeting with Fr./Dr. Xavier Alphonse and ZTE officials in Singapore in 2012.

Note: There are seven (7) parts to this article.

Part One: Singapore Supreme Court sentenced former Chairman of PNG Community College Trust American Thomas Doehrman (Doorman) and his Singapore wife Lim Ai Wah to prison for 5 years 10 months and 5 years respectively after finding them guilty of conspiring with Chinese national Li Weiming to defraud US$3.6 million (K11.6 million) from the ZTE corporation - a Chinese company that is a global supplier of information, technology and telecommunications equipment that was awarded $35 million contract by the PNG Community College Trust.

It explains what is PNG Community College????   

Part Two: Provides insights into the decision by Singapore Supreme Court to convict (find guilty) and imprison former Chairman of PNG Community College Trust Thomas Doehrman and his Singapore wife Lim Ai Wah over fraud and money laundering offences.

It reveals how the deal was done to award the contract.?????? 

Part Three: A discussion on the extracts from the statements submitted by Doehrman and his wife, Lim during the course of the first police interviews which the Prosecution relied during the trial to secure their conviction's.

It shows what was done behind the closed doors????

Part Four:  A discussion on the statements made during the record of interview that Singapore Public Prosecutor relied on to secure Doehrman and Lim's conviction (finding them guilty). This part turns to review their claims directly implicating Grand Chief Somare and his son Michael Somare Jnr 

A Post-analysis of Singapore deal: Papua New Guinea Community College Trust Scandal - Part 3

by BRYAN KRAMER

THIS is Part 3 of a possible seven (7) part series of articles providing insight into the recent decision (1/9/16) by Singapore Supreme Court to imprison/jail former Chairman of PNG Community College Trust, American, Thomas Doehrman and his Singapore wife Lim Ai Wah for upto 5 years over fraud and money laundering offences.

Part 1 - provided a brief of the Court ruling and covered some background information to answer the question what is PNG Community College Trust, why it was established and the parties involved in its dealing's.

Part 2 - provided sequence of events surrounding the payment of the secret commission of $3.6 million and the subsequent distribution of the proceeds to the benefit of various persons.

In Part 3 I will discuss the extracts from the statements submitted by Doehrman and his wife, Lim during the course of the first police interviews which the Prosecution relied during the trial to secure their conviction's.

On 15 March 2011 members of Singapore Corruption Practices Investigation Bureau (CPIB) picked up Doehrman's wife Lim for questioning in relation to the payment of $3.6 million to Questzone Offshore Ltd from ZTE Corporation.

When questioned whether any arrangements were made regarding the $3.6 million. Lim responded:

"I wish to state on a few occasions in 2010 the details of which I can not remember, myself, my husband Tom [Doehrman] and Stephen [Li Weiming] met up to discuss this issue."

"Sometime in beginning 2010 Steven Li met up with me and told me to setup a British Virgin Island (BVI) company as he wanted payments to the PNG PM as [he] had given the community college project to ZTE. He also told me his wife would be setting up a company and he will receive payments from BVI company. He told me that his bosses did not want to make any payments to Quest Petroleum and wanted a BVI company. I understand that ZTE have to pay PNG PM to get work in Papua New Guinea."

Lim went on to explain in paragraph 36 of her statement that Questzone Offshore Ltd was set up in order to receive payments from ZTE"

(Paragraphs 37-39) "Questzone Offshore was essentially a shell company set up to receive to receive $3.6 million from ZTE."

What is a shell company? It is a company without active business operations or significant assets (a paper company) "These types of companies are sometimes used illegitimately, such as to disguise business ownership from law enforcement or the public." The term shell company is representative of something that is really an empty shell.

Lim also acknowledged she was a director of Questzone Offshore Pte Ltd, a British Virgin Islands company of which she is the sole member apart from her sister, Ms Lim Swee Kheng, who is a nominal director. ( A nominal company director is a person appointed to be a director but doesn't play any active role in the company's affairs or dealings).

Now CPIB raised these issues because they were trying to establish whether or not the invoice issued by Questzone Offshore to ZTE was genuine or a fake and part of a conspiracy or scam to defraud ZTE and PNG Community College Trust - where the proceeds were later laundered (disguised to look legitimate) to the benefit of the named persons who had a direct conflict of interest in the transaction.

Following Lim's interview the next day on 16th March 2011 CPIB conducted a formal interview of Doehrman.

He acknowledged during his record of interview that:

"...[Questzone Offshore] was set up for the collection of commission for the USD$35 million project that was given to ZTE Corporation,.."

When asked what is the business activity of Questzone Offshore Ltd, he responded:

"I do not know. The company registration was done by the secretarial firm, Porticulus [sic]. From what I know Questzone Offshore Limited has no business dealings. It was set up to collect the commission and made payments out to Ai Wah, PM of PNG, Moox, and Stephen and also to hold contingency monies.."

Portcullis Trustnet is a wealth management company based in Singapore. They also setup and sell offshore companies based in British Virgin Islands which help ensure names, finances, business interests and political links remain hidden. It does this using a variety of methods, such as creating maze-like layers of companies and financial trusts in multiple countries and in many cases helping clients open overseas bank accounts in the names of anonymous companies rather than in their own names.

Doehrman went to on explain:

"During the initial stage of the [community college] project, it was estimated that the value was $3.6 million. Sometime in June or July 2010 at Shangri-La Hotel in Shenzhen (China) Stephen, Ai Wah [Lim] and I were there for a meeting. In the meeting, Stephen was the one who said set aside 10% commission. The 10% commission of the estimated project value of US$36 million was calculated to be US$3.6 million."

When asked who decided on the amount of commission to be paid? Doehrman replied,

"I wish to say that the decision was collective between me, Ai Wah, [Lim], Stephen and Moox on certain matters of contingencies" (possible future needs).

On 17th March 2011 CPIB interviewed Stephen (Li Weiming) - no details of his statement are provided.

On 18th March 2011 CPIB recalled Lim for a further interview which she confirmed Questzone had no employees or associates. The company had no concrete plans to hire any employees in the future nor did own or rent office space or even have Postal (PO Box) address. When asked if Questzone had signed any contracts with any companies she replied

"I wish to reply that no, Questzone Offshore has not signed any business contracts"

Following the interviews of Lim, Doehrman and Stephen no formal charges were made against them. Now this is an important issue as it is beyond question CPIB were of the view a crime had been committed which triggered their investigation.

The preliminary findings and initial record of interviews revealed that:

1) In early 2010 PNG Community College Trust and ZTE entered into discussions in the awarding of US$35 million frame contract to supply the community college project in PNG.

2) In May 2010 Lim setup Questzone Offshore Ltd to receive commissions from ZTE. She and her Sister were directors of the company which she setup allegedly acting on a request by Stephen Weiming

3) Questzone was a shell company without any employees, place of business or signed any contracts with any businesses.

4) In June 2010 the PNG Community College Project contract was estimated to be $36 million.

5) In July 2010 Questzone invoiced ZTE $3.6 million purportedly (allegedly) being for Contract for Equipment Supply" It was attached with a cover letter stating it was for a Contract of Service.

6) The invoice implied it was raised on the back of a sub-contract between Questzone Offshore and ZTE to provide services to ZTE in the delivery of the PNG Community College Project.

7) However Lim submitted a statement that Questzone Offshore has not signed any business contracts.

8) Following formal record of interviews Lim and Doehrman confirmed the $3.6 million was a 10% commission of contract which by June 2010 had been revised to be $36 million.

6) Days after ZTE issued payment of $3.6 million to Questzone Offshore, portions of the proceeds were paid to individuals who had a direct conflict of interest in the transaction.

So why weren't they charged? My view is that while CPIB had established a crime had been committed they needed a complainant, in that either ZTE or PNG Community College Trust to file a complaint to say they had been defrauded.

In this case both parties were involved in the transaction which included ZTE's chief representative Stephen Li Weiming seeking to secure a lucrative US$35 million (K120 million) contract on behalf of ZTE and members of PNG Community College Trust namely, Thomas Doehrman and allegedly his Deputy Michael Somare Jnr seeking to benefit from a secret commission (kick back)

On 30 August 2010 ZTE paid the $3.6 million pursuant (according) to Questzone Offshore invoice, all while the contract had yet to be awarded to ZTE by PNG Community College Trust.

The very next day on 31st August 2010 following the payment a formal contract was signed between ZTE and PNG Community College Trust valued at $38.8 million.

Now it can be argued no actual funds were defrauded from PNG Community College Trust as the $3.6 million was paid by ZTE Corporation before any contract was awarded to them.

However it begs the question whether the increase in the initial contract price from $35 million to $38.8m was to make provision (provide) for the recovery of $3.6 million secret commission initially paid by ZTE in a possible scheme to secure the contract.

If correct then ultimately PNG Community College Trust (People of PNG) was defrauded through the inflation of the contract by $3.8 million ($35 million to $38.8 million)

Now it would not be in ZTE's interest to file a complaint for fraud against one of their own employee's or the Chairman of the Trust including Somare Jnr if they had agreed to pay a secret commission to Questzone with the intent to secure the $36 million (K120 million) main contract from PNG Community College Trust.

It wasn't until a year later on 25 July 2012 in the height of the political impasse between Somare and O'neill, a period Somare had lost the office of Prime Minister, CPIB laid formal charges against Doehrman, his wife Lim and Stephen Weiming. This also raises the question whether members of O'neill Namah Government played a part in assisting CPIB investigations in an effort to undermine Somare's return in 2012 elections. I am reliably informed members of O'Neill/Namah Government made numerous trips to Singapore to make inquiries into the status of investigations by CPIB.

On 25 July 2012 Doehrman, Lim and Stephen were each charged with six offences. A single charge of conspiracy (secret plan) to falsify accounts namely fictitious (fake) invoice and sub-contract between ZTE and Questzone to procure the payment of $3.6 million. The remaining five charges of concealing and transferring benefits of criminal conduct (Money laundering) namely two payments ($750,000 and $100,000) to Stephen's wife's company in Hong Kong and three payments totalling $784,000 made into Somare's Singapore account.

Following their arrest all three were subject to further record of interview before being formally charged.

Part 4 we will discuss statements made during the record of interview by Doehrman and Lim following their arrest including their claims directly implicating Grand Chief Somare and his son Michael Somare Jnr.

We will consider whether their statements are credible or partly fabricated with the intent to avoid criminal prosecution. Lastly, we will consider the reasoning why Doehrman and Lim insisted the invoice was for a commission even though the particulars of invoice clearly stated it was for a contract of equipment.

Photo: Doehrman and Sheppard meeting with Fr./Dr. Xavier Alphonse and ZTE officials in Singapore in 2012.

Note: There are seven (7) parts to this articles: 

Part One: Singapore Supreme Court sentenced former Chairman of PNG Community College Trust American Thomas Doehrman (Doorman) and his Singapore wife Lim Ai Wah to prison for 5 years 10 months and 5 years respectively after finding them guilty of conspiring with Chinese national Li Weiming to defraud US$3.6 million (K11.6 million) from the ZTE corporation - a Chinese company that is a global supplier of information, technology and telecommunications equipment that was awarded $35 million contract by the PNG Community College Trust.

It explains what is PNG Community College????   

Part Two:  Provides insights into the decision by Singapore Supreme Court to convict (find guilty) and imprison former Chairman of PNG Community College Trust Thomas Doehrman and his Singapore wife Lim Ai Wah over fraud and money laundering offences.

Its reveals how the deal was done to award the contract.?????? 

Part Three:  A discussion on the extracts from the statements submitted by Doehrman and his wife, Lim during the course of the first police interviews which the Prosecution relied during the trial to secure their conviction's.
It shows what was actually done behind the closed doors??? 

A post-analysis of Singapore deal: Papua New Guinea Community College Trust Scandal - Part 2

by BRYAN KRAMER

THIS is part two of a seven (7) part series of articles providing insight into the recent decision by Singapore Supreme Court to convict (find guilty) and imprison former Chairman of PNG Community College Trust Thomas Doehrman and his Singapore wife Lim Ai Wah over fraud and money laundering offences. 

In Part One, I provided details of the charges and decision of the Court including background information to answer the question what is PNG Community College Trust, why it was established and the parties involved in its dealings. This article will focus on the findings of police investigation's surrounding the payment of the secret commission of $3.6 million paid by ZTE Corporation that led to formal charges being laid against Doehrman, his Singapore wife Lim Ai Wah and Chinese national Li Weiming former employee of ZTE Corporation. 

I explained in Part 1 sometime in early 2010 members of Trust which included Chairman Doehrman, Deputy Chairman Michael Somare Jnr (nickname Moox) and Greg Sheppard met with ZTE Corporation's representative Li Weiming (nickname Stephen) to supply equipment and build infrastructure for community college project in PNG valued at US$35 million.

The contract included ZTE Corporation being main contractor to supply the entire project, completing and assisting phase 1 and phase 2 with the gateway satellite connectivity to set the stage for all 89 community college by 2015 with virtual university and nation-wide e-books (online library).

However before the contract was formally awarded ZTE Corporation received an invoice dated 15 July 2010 for the amount of $3.6 million from a company called Questzone Offshore Ltd, that only registered in British Virgin Islands a month earlier on 4 May 2010 by Doehrman's wife Lim Wah. She registered her sister Lim Swee Kheng and herself as company directors.

British Virgin Islands are an offshore tax haven (tax free) jurisdiction where most companies operate without having to disclose their ownership or business dealings.

Following the registration of the company in BVI Wah also setup a company account with the Standards Chartered Bank (SCB) in Singapore.

In July 2010, Wah instructed her sister to invoice ZTE Corporation for $3.6 million in respect of a "Contract for Equipment Supply" of Education System for PNG Community College and Technical Education System between "ITE Trust" and "ZTE Corporation."

The invoice dated 15 July 2010 was issued under a cover letter entitled "Service Contract" for Education for System of PNG Community College Fund and Technical Vocational Education System.

On 30 July 2010 pursuant to the invoice, ZTE Corporation paid into Questzone's Singapore account $3.6 million.

On 3 August 2010 Wah arranged the transfer of $US750,000 from Questzone's Singapore SCB account to a Hong Kong HSBC bank account registered under the company J&M International Ltd. A company set up under Stephen's wife.

On 16 August 2010 Wah issued a Questzone cheque for $280,000 payable to Sir Michael Thomas Somare. On 17 August 2010 she deposited it into his Singapore Foreign Investment Cheque and Savings Account held with Standard Chartered Bank. On the same date a lump sum cash withdrawal of US$250,000 was made from the same account.

On 1 September 2010 Wah issued a second cheque payable to Sir Michael Thomas Somare for the same amount. The cheque was deposited on 2nd September 2010. Again on same date $250,000 was withdrawn, however this time in two equal transactions; a cash withdraw of US$125,000 and the second transfer of $125,000 to a general account (OneAccount) also held in Somare's name.

On 3rd September 2010 a transfer of US$168,500 was registered into Somare's general account to believed part of $125,000 + plus additional US43,500 presumably in cash. The same day the total $168,500 was again withdraw in cash.

On 12 November 2010 Wah issued a third cheque payment to Sir Michael Thomas Somare for US$244,000. On 7 December 2010 $220,000 cheque withdrawal (323213) - payee unknown.

Three payments made to Somare totaled $784,000 were made into Somare's Foreign Investment Cheque and Savings Account held with Singapore Standard Chartered Bank. A total of $625,000 was withdraw in cash. $125,5000 was transferred to his general account which was also withdraw in cash.

On 29 November Wah arranged a second and last transfer of $US100,000 from Questzone's Singapore SCB account to Stephen's wife's company account in Hong Kong, bringing the total to US$850,000 (US$750,000 + US$100,000)

A summary of the transactions out of Questzone Offshore Ltd SCB account are as follows:

30/07/10 deposit of US$3.6 million by ZTE Corporation
03/08/10 transfer of US$750,000 to Stephen's wife Co. HK Acct
16/08/10 cheque pmt $280,000 to Somare's Singapore SCB Acct
01/01/10 cheque pmt $280,000 to Somare's Singapore SCB Acct
12/11/10 cheque pmt $244,000 to Somare's Singapore SCB Acct
29/11/10 transfer of US$100,000 to Stephen's wife Co. HK Acct

Total receipts $3,600,000
Total disbursements $1,634,000
Balance remaining $1,966,000

A summary of the transactions in relation Grand Chief Sir Michael Somare's Singapore account.

Foreign Investment Cheque and Savings Account:
17/10/10 deposit $280,000
17/19/10 cash withdrawal ($250,000)
02/09/10 deposit $280,000
02/09/10 cash withdrawal ($125,000)
02/09/10 transfer general acct ($125,000)

Total deposits $784,000
Total cash withdrawal ($625,000)
Balance of funds remaining in acct $159,000

Note: the source of the details in relation to Somare's bank transactions were from copiers of purported bank statement posted online by a paid publicist of O'Neill Government. The documents are yet to be independently validated. Singapore Prosecution made no reference to copies of Somare's bank statements during the court proceedings other than confirm the deposit of funds (US$784,000) that originated from Questzone Offshore Ltd and made into his account.

Now sometime between November 2010 and early 2011 members of Singapore Fraud and Anti-corruption agency formally known as Corrupt Practices Investigation Bureau (CPIB) initiated investigations into the matter. They have yet to disclose whether they were acting on a formal complaint lodged with their office or notified by banking system following large cash withdrawals from Somare's account.

Following their investigations CPIB believed that Doehrman, Wah and Stephen Li conspired to defraud ZTE Corporation of $3.6 million and further aided and abetted in the unlawful transfer of criminal proceeds (money laundering) to their benefit as well as Grand Chief Sir Michael Somare and his son Michael Somare Jnr.

On 15 March 2011 CPIB picked up Lim Wah for questioning in relation to allegations over the fraud and money laundering offences related to the payment of $3.6 million by ZTE Corporation.

Doehrman and Stephen were also picked up for interview on 16th & 17th March 2011 respectively. Lim Wah was subjected to a further interview on 18th March 2011.

In the interest of avoiding publishing long winded articles I will keep my posts to around 1,000+ words.

In Part 3, I will discuss the statements submitted by Doehrman and Wah during the course of police interviews which the Prosecution relied on to secure their convictions. We will also discuss how they tried to change their position in an effort to have the charges dismissed on technical grounds as well as the culpability (criminal liability) if any against Grand Chief Sir Michael Somare and his son Michael Somare Jnr.

It's important to note this story has so many twists and turns involving so many parties trying to unravel it all and explain it in layman terms does take some time. We will also revisit Susan Merrell's publication on the issue and confirm it be malicious, grossly over opinionated and incompetent reporting of the facts.

Photo: Doehrman and Sheppard meeting with Fr./Dr. Xavier Alphonse and ZTE officials in Singapore in 2012.

Note: There are seven (7) parts to this articles: 

Part One: Singapore Supreme Court sentenced former Chairman of PNG Community College Trust American Thomas Doehrman (Doorman) and his Singapore wife Lim Ai Wah to prison for 5 years 10 months and 5 years respectively after finding them guilty of conspiring with Chinese national Li Weiming to defraud US$3.6 million (K11.6 million) from the ZTE corporation - a Chinese company that is a global supplier of information, technology and telecommunications equipment that was awarded $35 million contract by the PNG Community College Trust.

It explains what is PNG Community College????   

  Part Two: Provides insights into the decision by Singapore Supreme Court to convict (find guilty) and imprison former Chairman of PNG Community College Trust Thomas Doehrman and his Singapore wife Lim Ai Wah over fraud and money laundering offences.

It reveals how the deal was done to award the contract.?????? 

Part Three: A discussion on the extracts from the statements submitted by Doehrman and his wife, Lim during the course of the first police interviews which the Prosecution relied during the trial to secure their conviction's.

It shows what was done behind the closed doors????

A post-analysis of Singapore deal: Papua New Guinea Community College Trust Scandal - Part 1

by BRYAN KRAMER

ON 1st September 2016 Singapore Supreme Court sentenced former Chairman of PNG Community College Trust American Thomas Doehrman (Doorman) and his Singapore wife Lim Ai Wah to prison for 5 years 10 months and 5 years respectively after finding them guilty of conspiring with Chinese national Li Weiming to defraud US$3.6 million (K11.6 million) from the ZTE corporation - a Chinese company that is a global supplier of information, technology and telecommunications equipment that was awarded $35 million contract by the PNG Community College Trust.

Doehrman and his wife were also found guilty of five counts of aiding and abetting (assisting) in the conspiracy (secret plan) to launder criminal proceeds portions of the $3.6 million - two payments totaling $950,000 to Li Weiming's wife and three payments totaling US$784,000 to Grand Chief Sir Michael Somare's personal Singapore bank accounts.

Weinming was ZTE's company representative for the South Pacific Region based out of their Singapore office.

US$3.6 million was paid as a secret commission to a offshore company owned by Doehrman's wife following the awarding of US$35 million contract to ZTE Corporation in June 2010.

When news of the Court ruling went viral a keen supporter of Peter O'Neill made the following cynical comment on a social media post on the Supreme Court ruling.

"Will Kramer write one of his long winded, 7-part series sub-thesis in light of the most recent decision of the Supreme Court of Singapore re money laundering and blatant theft of public monies intended for community colleges in Papua New Guinea?"

To which I replied:

"Sure send me the judgement. I note your poor attempt of humour to ridicule my articles, I'm sure you being a student of law it would have dawned on you the audience of my long winded articles are ordinary PNGeans with limited academic background. Funny how its the lawyers including yourself who seem to be reading and learning from them."

"All matters and parties involved in corruption will always remain on the table with me, there will be no exceptions to the truth."

Now I understand the earlier comment was forthcoming on account I personally know the Somare family. Betha Somare and I attended same university, I also recruited Dulciana Somare-Brash to join Pangu Party as a strategic adviser on policy.

Thus I believe it is implied that my close association to the Somare's would somehow detract from my cause to expose and depose corruption.

Well without the benefit of the full judgement on the conviction I was able to piece together sufficient material in the public domain to provide a post analysis on the issue.

Before I delve into the issues surrounding the criminal convictions and allegations leveled against Grand Chief Sir Michael Somare I believe it's important to first cover some background information to the whole issue and bring to light some of the parties involved that seem to be left out of the picture.

So what is the PNG Community College Trust?

In November 2008 Somare Government passed an Act of Parliament called "Inclusive Education for National Development for Community Education Act 2008.

While it is a mouthful to pronounce it simply means a community based education system that is inclusive to all in the interest of National Development. An education system universally referred to as the Community College.

The concept (idea) was modeled on the community college system established in India and North America. Fr. Dr. Xavier Alphonse, PhD in English Literature was the architect behind the Community College education system in India he was engaged by Somare Government as a consultant to assist with establishing a similar system in PNG.

So what is Community College Education System?

It is an alternative education pathway intended for disadvantaged students who may have dropped out or been pushed out of ordinary schools by offering them training in practical life and work skills that would lead to gainful employment or becoming productive members of their communities. Unlike Vocational Technical Colleges the community college system is focused on competency and practical skills in up to 28 trades designed to the communities they operate in.

Example community colleges set up in urban centres would focus on providing skills based focused on employment while rural areas would be on skills appropriate to the needs of living in rural communities (agriculture, farming etc).

The Act or legislation was established by Somare Government to create a Trust that will work with the National Education guidelines to govern the community education system throughout PNG.

A Trust is a legal entity established by law where a second party(s) referred to as trustee(s) are given legal right to manage the assets or property of the Trust. Under the Act the Trust is "Inclusive Education for National Development for Community Education."

The Act (law) states the Trust in consultation with the National Education Board and Secretariat shall be the executive body of the community college education system in PNG. It shall consist of not less than three and not more than five members (trustees). They shall hold office for three years and eligible for reappointment.

Trustee(s) act like a Board of Directors who would normally be entrusted to act and make executive decisions in the interest of the shareholders. In this case the shareholder is the Trust created by an Act of Parliament and not a company thus there are no directors but trustee(s), there is no CEO but a secretariat charged with administrative or management role.

The Act (section 16) states that Department of Education shall fill the roles of Secretariat made up of the following positions: Director, Deputy Director, Research & Development Officer , Curriculum, Education and Standards Officer and Support Staff.

Section 18 of the Act (Fund of Trust) provides all moneys received by the Trust shall be paid into a fund and applied by the Trust to the performance of its functions.

Moneys of the Trust that are not immediately required by the Trust may be lodged on deposit with the Minister of Treasury or invested in any other manner approved of by the Minister.

The capital infrastructure cost to set up the colleges was to be funded partly by grants from PNG Government through annual budget allocations and partly from a loan from China tied to the purchase of pre-fabricated units (buildings etc) and installation of information and telecommunications equipment.

In 2009 Fr./Dr. Xavier Alphonse together with a eight member team from India conducted a number of workshops to lay the ground work for the establishment of the community college system in PNG.

Somare Government appointed three persons to be members of the Trust. Its Chairman American Thomas Doehrman (Doorman), Deputy Chairman, Michael Somare Jnr and lawyer Greg Sheppard. Sheppard's law firm Young & Williams was engaged to provide legal services to the trust and parked funds in his firms trust account account held under the name "Inclusive Education for National Development for Community Trust"

The members of the trust also registered a company ITE Ventures Ltd as a commercial entity to carryout the Trust's functions. All three members of trust are listed as its Directors and the Trust being the sole shareholder.

In the same year Somare Government committed K50 million from Annual National Budget with the plan to secure further funding from from Exim Bank of China to roll out first batch of 13 community colleges with the plan to eventually opening one in each of the 89 districts.

Exim Bank is an acronym or abbreviation for Export-Import Bank. They are Government owned banks or financial institutions which serve to promote exports of their country's goods and services by providing insurance cover or concessional loans. In other words in order to stimulate their economy creating jobs and bringing in foreign trade (currency) they will offer loans to foreign countries or multi-national corporations under special conditions being that the loaned funds be spent to purchase goods and services from companies in their country. US$19 Billion PNG LNG Project was funded by two Exim Banks of US and China .

This explains why Chinese company ZTE corporation was considered as the main contractor for the project and no other company outside of China.

So in June 2010 members of Community College Trust entered into negotiations with ZTE Corporation officials namely Li Weiming which led to awarding of US$35 million contract to the company to be the main contractor to establish a virtual university network encompassing 13 schools that would become part of an online educational programme connected to 89 community colleges across the country.

According to police statements obtained from Doehrman his wife was also included in these negotiations.

Following the awarding of the contract to a ZTE Somare Government entered into discussions with the Exim Bank of China to secure a concessional loan to fund the US$35 million project. In March 2011 Peter O'Neill who was then the Minister of Finance and Treasury led a government delegation which included the then Minister of Education James Marape to Beijing, China where the first commercial loan with the EXIM bank of China was signed.

US$35 million loan for the community college project for the Education Department and US$53 million loan for an Integrated Government Information System (IGIS) under the care of the Department of Information and Communication.

Part 2 of this article will discuss the findings of police investigations surrounding payment of the secret commission of $3.6 million that led to formal charges being laid against Doehrman, his wife and Li Weiming, their failed efforts to have the charges dismissed on technical grounds as well as the culpability (criminal liability) if any against Grand Chief Sir Michael Somare and his son Michael Somare Jnr.

Photo: Doehrman and Sheppard meeting with Fr./Dr. Xavier Alphonse and ZTE officials in Singapore in 2012.

Note: There are seven (7) parts to this articles: 

Part One: Singapore Supreme Court sentenced former Chairman of PNG Community College Trust American Thomas Doehrman (Doorman) and his Singapore wife Lim Ai Wah to prison for 5 years 10 months and 5 years respectively after finding them guilty of conspiring with Chinese national Li Weiming to defraud US$3.6 million (K11.6 million) from the ZTE corporation - a Chinese company that is a global supplier of information, technology and telecommunications equipment that was awarded $35 million contract by the PNG Community College Trust.

It explains what is PNG Community College????   

  Part Two: Provides insights into the decision by Singapore Supreme Court to convict (find guilty) and imprison former Chairman of PNG Community College Trust Thomas Doehrman and his Singapore wife Lim Ai Wah over fraud and money laundering offences.

It reveals how the deal was done to award the contract.?????? 

Part Three: A discussion on the extracts from the statements submitted by Doehrman and his wife, Lim during the course of the first police interviews which the Prosecution relied during the trial to secure their conviction's.

It shows what was actually done behind the closed doors????