More insights into the NASFUND/Airlines PNG coverup

IGATMO


It was fascinating to read Rod's response to Whistleblower. Since then Publicinterest, Kafu, Eyewitness and others have joined the chorus of public concern. Paul Barker of INA has some valid points but at end of the day he is calling for more evidence. Yet, he doesnt even ask Mitchel to give the actual story of how those transactions were done. Its Mitchel's balls on the line I would have thought. But Mitchel still remains tightlipped, and Barker is barking up the wrong tree. Publicinterest is correct- Mitchel's denials are worthless.

Calling for more evidence is also a lame response since, as someone else correctly said, this is not a court of law.

Whilst Whistleblower, Publicinterest and others are generally in the right direction, some details are missing. Perhaps I could help. In respect of the APNG Investment, it was a down right CON-JOB done on the contributors by Mitchel. I am now going to describe one of the biggest day light robberies ever done in PNG History. Mitchel knew it was a very very bad investment and immoral criminal act, but he proceeded. The question is why? [ Any sane person can guess why].

Here are the main facts:

1. APNG was not worth K95 Million. On correct valuation it was worth much less than that. The Aircrafts mainly Dash 8s were bought from Qantas on a firesale by Mr Simon Wild and were given replacement values double or tripple that.

2. The Valuation of APNG done for the prospectus was by an unknown person who is not one of the professional or reputable valuers known in the Australian Aviation business. It was done by someone with an ABN number, and a hotmail address. For purposes of soliciting funds in a float, a superfund in prudent management of Contributors funds owes a fiduciary duty to carefully ensure it is not relying on valuation by backyard operators. Yet that is exactly what Rod did. Rod himself is not an Aircraft or Aviation specialist. So how can he believe whatever value that the Wilds were telling him? The answer- he cant. But he did. So the K95 Million Valuation is not reliable. It is likely, APNG was worth less, and it was.

3. The Share price offered by Paul Maclaren/Wilds for APNG was K1 par value of each share. Yet on past earnings based valuation, each share was worth only 0.13 toea, NOT K1. You value a company on a combination of factors, but Price divided by Earnings is the most accepted method. That valuation showed the valuation was inflated by 100%, the real value was doubled with no real asset backing.

4. Rod Mitchel knew and the Wilds knew that of the total of K105 Million raised, the Wilds would pull out K95 million and put it into their pocket. What was going to be left in the till was K10 million. What can you do with K10 million? Buy one dash 8 engine and 2 weeks of fuel? It was just pocket change. SO why was Rod endangering the people's money and investing in a business that was not going to leave the money in, but pull it out the back door? In otherwords, why was Rod putting our money directly into the Wild Famil's pocket? [ why did Mitchel do this? ]

5. What did Mitchel invest in? Couple of old planes, and a promise of two 737 jets to do the Asian route. What happened after the money was paid up? The promised 737 Jets idea was scrapped by the Wilds.

6. Who else was tricked? MRDC for almost K30 million Landowner money[ ps Paul Maclaren was MRDC investment advisor as well as being Mitchels Buddy as well as the Wild's round up man .] The poor long suffering teachers Super Fund was also tricked. They would not have invested except Rod put personal phone calls through asking them to invest, and he said he was putting in K23 Million.

7. Now looking at the deal again, we ( PNG INVESTORS) paid K105 Million for a company that is worth K95 Million- if you believe the backyard valuation. Personally I think it was worth much less. But by rights we should be entitled to 100% of the issued shares.

8.1 That is not what happened. Mitchel knew that the Wilds proposed to retain 50% of the company. They were only selling 50%. So NASFUND PAID FOR SHARES THAT IT DID NOT RECEIVE. In other words, Nasfund paid double the actual value of shares. [ Again why did Mitchel pay double? I let you answer that] That is why it stinks!

8. 2We should be entitled to 100 % of the shares. Instead the Wild Family took all the money, pocketed it, kept 50% shares in the company, and took Management rights over the company, which ensures they always get first bite of any extra cash lying around and cross hire of all good APNG Aircraft as and when they feel like it.

9. This represents one of the biggest frauds of the Century on the people of PNG. The Wilds sold their whole business for the full price, but retained 50%, and Mitchel knew this and helped them.

10. The Share price was always going to be corrected by the market, and it did. The K1 shares are worth less than 0.50 toea. That is the correct value.

11. For such investment decisions, in Australia, Mitchel would be in jail. We do not have a strong Securities Commission or Central Bank who police such stupid and dubious investment decisions by people like Mitchel, hoodwinking our people.

12. Nasfunds K23 million investment is now worth K9.2 Million. It has made a loss of K11.1 million because of deliberate, stupid and negligent investment. [For a kick back? We need to investigate or have an Inquiry]

13. This needs to be investigated as a fraud and all persons involved be prosecuted

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