Friday, July 02, 2010
Highlands Highway blocked
Ex-BSP boss expresses shock over arrest
FORMER Bank South Pacific boss Garth McIlwain was shocked and completely surprised when he was taken in for questioning by police on Wednesday, The National reports,
He did not know he was going to be charged with fraud and forgery, and made to fork out K5, 000 in cash for bail.
“I have served the PNG banking industry for more than 42 years and have worked with the PNG Banking Corporation, the Credit Corporation and BSP and, in all these years, this is the first instance that I have been faced with such criminal charges, which is very disappointing indeed,” McIlwain told The National yesterday when recounting the four-hour ordeal that he went through, including being locked up like a common criminal in the police cells.
McIlwain told The National that he was initially asked last December to assist police with their investigations into issues relating to court cases involving BSP, and he had kept in contact with the fraud squad.
“I was cooperating with the fraud squad as they asked me to do, in December, so when I arrived in
“When I did that on Monday, I was asked to come into the office on Wednesday.
“I did so, at about 3pm. I was kept there from then until about 5:30pm and was taken to Boroko police station and remained there from 6pm to 7pm.”
After he was charged, McIlwain was allowed to make one telephone call, and he called BSP executive Robin Flemming, who went with lawyer Michael Henao to assist him.
Flemming had brought the K5, 000 bail money.
The National had erroneously reported that Flemming was arrested and charged along with McIlwain.
“I did not have that kind of money on me; I do not carry that kind of cash and the police told me to pay K5, 000 cash before being released,” McIlwain said.
He was CEO of BSP from 2000 to last year.
He is a naturalised PNG citizen, now retired and living in Kokopo with his family – his wife is from
McIlwain is credited with the successful merger of PNGBC and BSP, now the biggest bank in PNG and the Pacific region.
The utterance and fraud charges he is facing relate to a complaint lodged to police by businessman and former politician Peter Yama.
Yama yesterday distanced himself from the McIlwain arrest, saying he did not intimidate or influence police to make arrests.
“I first complained to police about BSP three, four years ago. Why would the charges take this long if I had such close connections?
“Police see the evidence, they see something is wrong and they acted,” he told AAP.
“This is not tactics of intimidation; I did not go to the police commissioner and tell him to make this happen; I’ve been in Madang,
“I do not have a grudge against anybody,” he added.
BACA urges Baki to act
A COALITION involving the Transparency International and business houses have slammed the arrest of lawyers and bankers doing their duty, and questioned Police Commissioner Gari Baki’s silence on the behaviour of his policemen, The National reports,
The Business Against Corruption Alliance (BACA) made this strong statement yesterday following the arrest of former chief executive officer of Bank South Pacific Garth McIlwain.
BACA said the harassment and jailing of bank employees and lawyers in the ordinary conduct of their employment duties were illegal and unacceptable.
It said they were frightening examples of what many perceived to be influence being exercised over elements of the police force by external factors.
“They are clear examples of the breakdown of the constitutionally guaranteed rule of law in PNG, and the police commissioner’s silence is a damning indictment of his conduct as commissioner,” BACA said in a statement sent to the media yesterday.
It said PNG was now confronted with a situation where the law was seen by many to be the victim of personal influence.
“Baki’s position as commissioner is untenable if he will not come out publicly and state categorically that this situation is unacceptable to him, that it will end, and that he will issue instructions and ensure his officers abstain from such activities,” BACA said.
It said the situation was threatening the effectiveness and fairness of the legal system, and the confidence of business and investors in PNG.
“It was also a threat to the democratic system and the rule of law, and lucrative large scale projects like the LNG project could be under threat.”
BACA urged Baki to hold an urgent meeting to address this issue.
It said the government and the commissioner must wake up to this threat and take drastic action.
Several attempts to get comments from Baki were unsuccessful.
Rift widens between Gulf factions
THE rift between Gulf Governor Havila Kavo and local level government presidents backed by the only two other Gulf MPs is widening when Kavo yesterday refuted claims of his lack of performance in office, The National reports.
At a press conference yesterday, Kavo said that calls through a seven-day notice for his dismissal, were illegal.
The latest development was alleged to have been instigated by the other group as a result of his deferral over a week ago of the swearing-in of LLG presidents, which Kavo said yesterday was necessary adding that the processes had to be considered carefully and had to be in line with certain administrative processes.
He said as the mandated leader of the province, what was being reconsidered was in the best interest of the people of Gulf.
He also questioned why there was a rush by certain individuals to appoint LLG presidents into the provincial assembly.
He said he would refer Kikori MP Mark Maipakai and Kerema MP Pitom Bombom to the Ombudsman Commission for instigating a provincial assembly meeting in Kerema on Wednesday.
Kavo also referred to section 17 of the Organic Law of Provincial and Local Level Governments (OLPLLG).
During that sitting in Kerema, which he said was an abuse of constitutional right and illegal, nine LLG presidents were sworn in and a motion was passed for a seven-day notice for Kavo to attend the July 7 assembly meeting or be stripped of his governorship.
He added that notices had to be served 14 days earlier.
But yesterday afternoon, another meeting by Bombom and the LLG presidents was convened where the group pledged its solidarity, asking Kavo to turn up for the July 7 assembly sitting.
Bombom challenged Kavo before the presidents and journalists to turn up for the planned sitting if he truly was the mandated head of Gulf like he claimed.
Amongst what was discussed at this meeting was Kavo’s alleged neglect of his duties and responsibilities by not allowing proper debates on the Gulf provincial budget before their passage for the years 2007, 2008 and last year which was in contravention of section 20 (1) (c) of the OLPLLG.
Also, the governor had not provided a sound position paper for Gulf on certain benefits sharing agreements for the PNG LNG project which may result in the province missing out on essential project funding and other benefits.
Meanwhile, a letter to Kavo last Friday from the secretary for the Department of Provincial and Local Level Government Affairs was issued advising the governor to convene an assembly meeting this week.
This had not taken place.
The secretary could not be contacted yesterday to deliberate on the matter.