Climate corruption in Papua New Guinea. Climate Change and Development Authority staff accused of stealing US$1.3 million

PHOTO Credit: ABC Four Corners

Earlier this year, armed police raided the Papua New Guinea Climate Change and Development Authority’s office in Port Moresby. They seized computers and financial records.

CCDA staff are accused of misappropriating US$1.3 million.

Last week, police arrested and charged CCDA’s finance manager, Ivan Aipi. He faces 35 charges, including corruption, abuse of office, and misappropriation of funds. He is accused of illegally executing cheques for the benefit of CCDA’s acting managing director, William Lakain, and his associates.

Court documents allege that Aipi’s wife, a court magistrate, attempted to bribe an investigating police officer. She later apologised through her clerk.

CCDA’s funding comes from local taxes, international grants - including from the United Nations.

CCDA’s funding also comes from revenue from REDD projects. For example, 7% of the revenue from NIHT Inc’s REDD project goes to CCDA. Perhaps we shouldn’t be too surprised that CCDA approved the project - despite its many problems.

A recent investigation by ABC News’ Four Corners found that logging was taking place inside the REDD project. The police raided CCDA’s Port Moresby office days before the programme was broadcast.

Whistleblowers

ABC News reports that two CCDA staff raised concerns with police and government authorities. In May 2022, Alfred Rungol, a senior CCDA official, alleged that two senior CCDA staff had attempted to get US$12,500 transferred to their personal bank accounts to cover costs for taking part in a conference in Germany. In fact, all the costs were covered by the UNFCCC.

In an email to CCDA managers, Rungol claimed that the payments would be a misuse of public funds, and amounted to corruption.

He told ABC News that,

“I sent the email asking the question, why are they trying to pay themselves to their personal account? I was very serious, I was not happy.

“This is taxpayers' money, or international funding … people are suffering in communities, and we have money that we can assist, yet the people are not seeing any assistance from climate change office.”

Shortly after sending the email, Rungol was suspended and then sacked. Neither of the staff who attempted to transfer the CCDA cash have been charged.

ABC News interviewed Rungol:

After Rungol and another CCDA employee contacted the authorities, the National Fraud and Anti-Corruption directorate and the Major Crimes Unit started an investigation into CCDA.

Police allege that the money was taken between August 2022 and March 2023. Almost US$100,000 went on hotel accommodation in Port Moresby, with little “benefit to achieve the primary development programs of the department”.

Lakain: “Unsubstantiated complaints”

CCDA’s Acting Managing Director, William Lakain tried to dismiss the charges against the CCDA by attacking the whistleblowers. Lakain has not been charged with any offenses. He told ABC News that,

“He’s a sacked officer who is corroborating with one officer who is hungry for power. I’m stopping this. Our position will be put in the newspaper on Monday.”

REDD-Monitor could not find any notice from Lakain or CCDA on the online versions of either the Post Courier or The National today.

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UPDATE - 3 May 2023: William Lakain’s response to the allegations of corruption were published today in The Nation. The media statement is available here:

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Lakain has written to the Commissioner of Police accusing the police of interfering in an internal disciplinary matter saying that,

I am astounded and deeply troubled by the actions of those making unsubstantiated complaints and attempting to have me imprisoned for conducting my legal duties to administer the day-to-day operations of the Office of the Climate Change & Development Authority.

Clearly though, the alleged theft of US$1.3 million is a matter for the police.

Joel Simatab, Royal Papua New Guinea Constabulary crimes director argued that the money was taken in breach of the Public Finances Management Act. He told ABC News that,

“The allegations are for bonuses that were paid, as well as claims that were put through, and are not consistent with the planned activities of the CCDA.

“Climate change is a global issue and PNG is a recipient of countries who are donating to assist us.

“When we have our internal processes being abused, brought into question, especially in terms of finance, it gives a very bad impression back to our donors.

“The magnitude of this case, we are talking about millions of kina being donated in support of the fight against climate change … and we’re very serious about it.”

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