"Following the publication of investigative reports by OCCRP and its partners, Papua New Guinea police have initiated an international investigation into allegations of bribery."
Key Points
- Despite the assertions made by the prime minister of Papua New Guinea (PNG), James Marape, that he has limited familiarity with Australian consultant Don Matheson, recent documents and interviews indicate a different story. Marape and Matheson seem to have facilitated introductions for one another with influential political figures in both PNG and Australia. These interactions have come to light in the context of a significant scandal concerning the country's ports and involving multi-million-dollar transactions.
- One particular incident reveals that Prime Minister James Marape introduced Don Matheson to William Duma (state enterprises minister), who then assisted Matheson in presenting business proposals to Kumul Consolidated Holdings. This introduction by Marape played a role in facilitating Matheson's efforts to secure business opportunities within Papua New Guinea.
- Interestingly, Prime Minister James Marape has appointed William Duma to lead a thorough review of Don Matheson's activities. Despite the his previous involvement in facilitating Matheson's business endeavors, Marape has entrusted them with the responsibility of investigating and evaluating Matheson's dealings. This move highlights the government's recognition of the need for a comprehensive assessment of the situation involving Matheson.
- Papua New Guinea police are currently conducting investigations into additional contracts secured by Don Matheson in the country. The efforts by the Organized Crime and Corruption Reporting Project (OCCRP) and its collaborators have revealed irregularities in at least one of these contracts. These findings suggest that there may be questionable practices or misconduct associated with the acquisition and execution of these contracts by Matheson. The ongoing investigations aim to shed further light on the nature of these irregularities and their potential implications.
Publicly, Prime Minister James Marape of Papua New Guinea has adopted a firm stance regarding Don Matheson, an Australian consultant who is at the center of a significant scandal involving multi-million-dollar offshore payments. This scandal has generated considerable outrage within the Pacific nation. Marape has been vocal in addressing the issue and expressing his strong position on the matter.
In a collaborative investigation conducted by the OCCRP and the Australian Broadcasting Corporation (ABC) in March, it was unveiled that Don Matheson had a pivotal role in facilitating questionable offshore payments to high-ranking officials. Notably, these payments occurred during the period when these officials were involved in granting significant international contracts for the operation of Papua New Guinea's largest ports. The investigation shed light on the potential misconduct and improprieties surrounding the awarding of these contracts, with Matheson being implicated in facilitating the suspicious offshore payments.
The report detailing the scandal involving Don Matheson and the offshore payments created a significant impact in Papua New Guinea (PNG), attracting widespread attention. As a result, Prime Minister James Marape took action by initiating official investigations into the state-owned PNG Ports. Furthermore, facing mounting pressure, Marape refuted the assertions made by Matheson regarding close connections between Matheson and the prime minister's family. Marape sought to distance himself from any alleged ties, emphasizing the importance of transparency and accountability in addressing the scandal.
In response to inquiries about his association with Don Matheson, Prime Minister James Marape addressed the parliament in March. He stated that his interaction with the Australian businessman was limited to playing "one or two rounds" of golf together at a course in the capital city, Port Moresby. Marape sought to downplay any notion of a close relationship or significant ties between himself and Matheson, emphasizing the casual nature of their encounters.
“[I] play anyone who walks into that club, who’s a visitor or new person, I invite them. ‘You wanna have a golf with me?’ I invite everyone [to] come for a walk at the golf course. Part of my health regimes anyway. So Mr. Matheson plays one or two rounds of golf with me,” Marape said.
Newly obtained evidence contradicts the claims made by Prime Minister James Marape regarding his relationship with Don Matheson. Interviews and official documents obtained by OCCRP, the ABC, and Inside PNG suggest that Marape and Matheson were more closely connected than previously acknowledged. The evidence indicates that Marape personally introduced Matheson to State Enterprises Minister William Duma, who Marape subsequently assigned to investigate the ongoing scandal.
Correspondence shows that Duma provided Matheson with a letter of recommendation to support his efforts to secure contracts for developing state-owned land in Port Moresby. The outcome of Matheson's bid for these contracts remains unclear. Duma, in response to media inquiries, insisted that any questions from the Australian public broadcaster, the ABC, required written permission from Australia's communications minister to delve into domestic issues of another country. Duma further stated that the alleged conflict of interest did not apply in this case.
Additionally, reporters discovered that Matheson had attempted to arrange a meeting between Marape and David Crisafulli, the opposition leader of the Australian state of Queensland, during Matheson's visit to Australia in 2022. Neither Marape nor Matheson responded to the reporters' questions.
Peter Aitsi, the head of the PNG chapter of Transparency International, expressed concerns about the undisclosed ties between Matheson, Marape, and Minister Duma. Aitsi emphasized that such evidence could undermine public trust in the government's review of the offshore scandal, suggesting that if proof of a relationship exists between Matheson and Duma, Duma should be removed from overseeing any government review.
Key Takeaways
- Marape lied about knowing Matheson, and tried to downplay their relationship when evidence showed otherwise.
- His decision to introduce Matheson to William Duma influenced the outcome of Matheson's company being awarded the contract.
- When the evidence was made public he ordered Duma to investigate, which is a conflict of interest that would affect transparency of the investigation.
Stay tuned for part 2 of this report.
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