Prime Minister Peter O’Neill lied to Parliament yesterday when he said he needed a brief on the K50-million fraud by his Minister for State Enterprises, William Duma.

Mr O’Neill received a comprehensive brief from the chairman of Kumul Consolidated Holdings, Paul Nerau, two weeks ago, which comprehensively exposed the fraud.

A whistleblower within the Department of Prime Minister and NEC has provided PNG Blogs with a copy of Nerau’s report.

Instead of immediately reporting the fraud after receiving the report, O’Neill went into cover-up mode, with the assistance of Nerau, to protect themselves and their cronies Duma, Defence Minister Fabian Pok and Central Supply and Tenders Board chairman Phillip Eludeme.

The PM and NEC source says Prime Minister refused to refer the matter to the appropriate authorities, including the police and the Ombudsman Commission, instead he tried to sweep the evidence under the carpet.

For example he wrote to Kina Bank asking for the proceeds of Duma’s fraud to be returned in secret. He failed to report the payment of secret commissions from the fraud to Minister Pok, K8.25 million, and Eludeme, K16.5 million.

O’Neill also colluded with Nerau to try to short-circuit any official investigation and keep things under their control by agreeing to an internal investigation.

O’Neill and Nerau are trying to deflect blame from Duma, Pok and Eludeme by pointing fingers at Kumul Holdings Managing Director Garry Hersey, who has been told not to come into the office, and is not expected to return.

Nerau’s report to the Prime Minister is damning and provides further evidence of Duma’s oversight of the fraud, according to the PM and NEC whistleblower.

It also seeks to exonerate himself and the board of Kumul Holdings, which is dominated by O’Neill puppets.

Nerau, who sent the brief to the Prime Minister on 15 January, indicates that the Duma fraud may be more extensive than what is publicly known at this stage.

Mr O’Neill himself has many questions to answer:

·      When was the land bought?
·      Who did Duma’s company Kurkuramb Estates buy it from?
·      What was the price?
·      Exactly how much land was bought for the K50 million?
·      When did the Prime Minister become aware that Duma got 800 hectares of Manumanu land and           Eludeme 20 hectares?
·      Did Kumul Holdings but the all the land acquired by Kurkuramb Estates?
·      Approximately 2000 hectares of land has now been bought, according to Minister Pok. What are the details of the purchase of all the land earmarked for PNGDF relocation? Who owned it? Who did the State buy it from, when and for how much?
·      When did the Prime Minister become aware that Defence Minister Pok received a secret commission from the Duma fraud of approximately K8.5 million?
·      When did the Prime Minister become aware that Mr Eludeme received a secret commission of approximately K16.5 million from the Duma fraud?
·      Why didn’t the Prime Minister immediately provide all relevant information to the Ombudsman Commission and the National Fraud Squad and Anti-corruption Directorate?
·      Is the Prime Minister aware of the many attempts by Mr Duma and his cronies to try to sell the land at an inflated price to the Government and its agencies?

Mr O’Neill and Mr Nerau should present themselves to the fraud squad and to the Ombudsman Commission so that satisfactory answers to these questions and others are given.

The extent of the fraud also raises questions about the entire Defence Force relocation program, approved by NEC, at a total cost of K800 million.

The PM and NEC source says the exposure of the Duma fraud casts doubt on the probity of the entire program and many of those tasked with implementing it, including Ministers Duma and Pok.

The source says the program should be immediately abandoned, given the long-term threat to national security if the program fails, the risk of further frauds by members of the O’Neill Government, and further cover-ups by the Prime Minister.