Papua New Guinea authorities must ask 'where is the money' following conviction of disgraced lawyer, anti-corruption watchdog says

5:33 pm on 11 October 2023
Paul Paraka

Paul Paraka Photo: PNGExposed

Transparency International Papua New Guinea says there is still much to do in the wake of the sentencing of disgraced lawyer Paul Paraka on fraud charges.

Paraka, who had operated his own eponymous law firm, one of the largest in PNG, was convicted of swindling 162 million kina, or about $US46 million dollars, in government funds.

He was first arrested more than nine years ago and charged with five counts of misappropriation alleged to have occurred between 2007 and 2011.

Justice Teresa Berrigan, in sentencing Paraka to 20 years in jail, referred to it as a case of "enormous magnitude, despicable greed and incalculable loss to the people of Papua New Guinea".

"Each of the offences clearly constitutes misappropriation of the worst kind," Justice Berrigan said.

She said it was not a case of breach of trust.

"The offender was not employed in the public service, nor did he hold public office. Nevertheless, the fact that he was a lawyer and a senior lawyer at that, is a highly significant and greatly aggravating feature of the offender."

The judge said such offences committed by experts in the law, such as police officers or lawyers, are "strongly condemned" by the court as it brings a bad name to the country's judicial system.

"They bring the law and those who serve it into disrepute. And further undermine the confidence in our system of justice that is essential to maintaining the rule of law."

Justice Berrigan said "fraud is not a victimless crime".

"It has very real and often enduring consequences for those who lose the benefits of the funds. Where State monies are involved it impacts the entire community, particularly those most vulnerable."

Transparency PNG's Peter Aitsi said the court's decision is a significant outcome but now the agencies of state need to follow through on many of the findings.

"It's for those agencies to ask those questions, 'OK where is the money now?'"

"Where are those payments that went through this complex structure that was created through Paul Paraka's law firm, and who were the beneficiaries of that money through that network, and then perhaps ask those questions of those individuals in terms of what the nature of those payments were.

"So there is much work still to be done," he said.

Aitsi said his organisation had sought assurances from the government that the work of the newly established Independent Commission Against Corruption, or ICAC, is properly funded in the 2024 Budget so they can fully undertake their responsibilities.

He said the government had responded, saying it would fully fund the work of ICAC.

Aitsi and TIPNG will watch that work closely.