PSHOP Money Trail Leads to Prime Minister Peter O'Niell
The Prime Minister was quoted in the Post Courier of 21st August 2012 as announcing the National Executive Council decision to terminate the K31.52 million Public Service Home Ownership Program (PSHOP) contract and the contractor, Australasia Pacific Panel Limited (AUSPAC), has offered to repay the money in full. Mr O’Neill said significant increases in property development and building costs over the last five years had made it impossible for the contractor to deliver fully serviced land and 200 houses at Eight Mile in the National Capital District.
Mr O’Neill commended Australasia Pacific Panel Limited for its offer to repay monies it had received from the State for the PSHOP project. “The vast majority of cancelled contracts with the State end up costing the State millions of Kina. It is to the credit of the contractor and its executives and affiliates that the monies advanced by the State are being repaid in full,” he said
Although the announcement to repay was admitted under immense public scrutiny, to this date nobody knows whether the K31.52 million was actually reimbursed.
The PSHOP was a signature project of PM O’Neill when he was the Minister for Public Service. Under this project, the Somare Government earmarked K200 million. K120 million of this was allocated for direct construction whereas K80 million was to be deposited with a commercial bank to provide concessional loans to public servants who are first time homebuyers.
K39.08 million fixed price contract was awarded to a controversial and relatively unknown company, Auspac PNG Ltd to build 200 houses at 8 Mile outside Port Moresby. Auspac was awarded the contract because it provided two hundred land blocks titles to the land. Under the agreement with the State, Auspac was supposed to file the titles with Bank South Pacific as security and transfer to the State nominated public servant but that did not happen. Auspac still has the titles.
The contractor received well over K31.52 million and built only 12 houses which equals to K2.6 million per house. Upon realising that they were unable to live up to the terms of their contractual obligations, the contractor raised unreasonable and unjustified contract variations only to frustrate the contract to its ultimate termination.
Who is this Auspac PNG Ltd (Strongbond)? we see Mr Jimmy Maladina, Sir Fredrick Reiher and Sir Ninian Morgan Lourdenadin as shareholders from the company extract. Two are knights whilst one is still hanging around with the Prime Minister and you can trace them back to NPF saga. So it looks like PM O’Neill helped his mates to unjustly enrich themselves. The money trail might lead to him as well, who knows.
The K80 million that got deposited into BSP still remains a mystery. No official records of who in the public service obtained the loan. It is believed no one has benefitted from the money. Secretary John Kali of Department of Personal Management should have some answers for this. The Grand Chief and others were vouching for the K80 million to be deposited with the National Development Bank. However, O’Neill being the former Chairman of PNGBC, he used his close connections with BSP to have the funds (free extra cash for BSP) with BSP. It is interesting to note that after the transaction, PM O’Neill’s company Remington technology was awarded a lucrative contract by BSP to install ATM/Eftpost machines around the country.
PM O’Neill’s conduct was also dishonest in that he directed payment to a company which he had close connections. Even if they repaid, a crime of dishonesty has already been committed.
The Real Benefactors of PSHOP are: Auspac and BSP and off course, PM Peter O’Neill.
Robin Fleming (believed to be a long time employee of BSP since PNGBC times when PO was the Chairman of Finance Pacific, was the Chief Lending Officer who was in charge of the PSHOP funds). In September last year (2014) the same schemers (BSP and O'Neill) cooked up another home ownership project. This time, loans would be granted by BSP for up to K400,000 at the all-time low interest rate of 4%. BSP Group CEO Robin Fleming when officiating the deal said the shortage of quality and affordable housing in Papua New Guinea (PNG) has been recognised by the Government of Papua New Guinea as having a fundamental impact on many Papua New Guineans.
“BSP believes that home ownership is a means for ordinary Papua New Guineans to establish an asset base that can be passed onto their children. So it is with pleasure that we here today with the Prime Minister to announce this joint initiative, the First Home Ownership Scheme,” he said. "First time home ownership?.
The National Government has given the first contribution of 200-million Kina to kick start the scheme. (That is another K200 million for the same project)
Read more: http://www.pngfacts.com/44/post/2014/09/oneill-launches-home-ownership-scheme.html#ixzz3hIQCPJR2
O'NEILL LAUNCHES HOME OWNERSHIP SCHEME
Prime Minister Peter O'Neil yesterday, signed a Memorandum of Understanding with Bank South Pacific, to enable the country's first Home Ownership Scheme. The National Government has given the first...pngfacts.com
Todate, no one knows the report of the previous PSHOP where K80 million was given to BSP. This time it is another K200 million. Men, this guys never cease to scheme!
Auspac was more or less a K2 company but with the help of O'Neill, he enriched his close cronies like Reiher and Maladina. They got the land at 8 Mile and the capital injection to start them off. Free start-up cash for his boys to start off course.
After they used up the cash to stand on their feet, they then frustrated the contract which was eventually terminated.
For the recent K200 million, nobody knows how much O'Neill has made. He (O'Neill) never strike a deal for nothing. He is always on the take