25 Feb 2010

BSP row in PNG will see banker stand trial

4:50 pm on 25 February 2010

An Australian banker in Papua New Guinea, John Maddison, has escaped conspiracy charges but will be tried for misappropriation in a feud with PNG businessman and former politician Peter Yama.

Mr Maddison, who is a senior executive of Bank South Pacific, was charged with 50 counts of conspiracy to defraud and 45 counts of misappropriation in a case that has caused great concern across the business community in PNG.

The court said there was no evidence of conspiracy and the charges lacked credibility.

However, it found there were grounds for Mr Maddison's misappropriation charges to go to trial.

Last December, Mr Yama won nearly three million US dollars in a legal battle against a motor vehicle insurance company, but BSP moved to secure the money, claiming Mr Yama had millions in outstanding loans.