Climate corruption in Papua New Guinea: William Lakain, acting managing director of Climate Change and Development Authority says “I categorically reject these allegations”

Lakain claims whistleblower is a “disgruntled former staff member who has taken to the media to air his grievances”

Earlier this week, REDD-Monitor wrote about allegations of corruption in Papua New Guinea’s Climate Change and Development Authority. ABC News reported that CCDA staff are accused of misappropriating US$1.3 million.

ABC News spoke to William Lakain, CCDA’s Acting Managing Director, who said that, “Our position will be put in the newspaper on Monday.”

Today, a statement was published in the Papua New Guinea newspaper, The Nation. (Thanks to Melanesian Carbon Watch for letting REDD-Monitor know about the statement.)

In the statement, Lakain points out that the allegations of corruption are currently before the courts and that, “It would be inappropriate to discuss these matters further in the media, as it could prejudice the legal process.”

He then dedicates eight paragraphs to discussing these matters further in the media.

Part of Lakain’s media statement is an ad hominem attack on the whistleblowers who made the allegations of corruption public. He describes one of the whistleblowers as a “disgruntled former staff member who has taken to the media to air his grievances, in an attempt to smudge the Authority’s reputation”.

Alfred Rungol, one of the whistleblowers, is currently involved in a legal case about his “unlawful termination” from CCDA. He was sacked after he sent an email to CCDA managers in May 2022 to alert them to possible misappropriation of funds by two CCDA staff. This is a separate case to the accusations of misappropriation of US$1.3 million.

Here’s Rungol’s reaction to the media statement:

And here’s the media statement in full:

Statement on Allegations of Financial Mismanagement at Climate Change and Development Authority

Recent media reports alleging mismanagement of public funds by Climate Change and Development Authority (CCDA) officials have caused concern among the public and called into question our financial management practices. As Acting Managing Director of CCDA, I would like to address these significant allegations, especially those aired through ABC News, with transparency and accuracy.

First and foremost, it should be noted that the allegations of official misappropriation of public funds against the officers of the CCDA are currently before the courts. It would be inappropriate to discuss these matters further in the media, as it could prejudice the legal process.

Secondly, I want to emphasize that the alleged misappropriation of $2 million remains an allegation only. The funds in question were fully accounted for and subject to audits like all public bodies. CCDA is funded by public funds and is regularly audited by the country Auditor General’s Office. Audits for the years 2019-2021 have already been completed.

International grants, including those from the United Nations and contributions from a rainforest preservation project with links to Australian businesses, are subject to strict financial probity and audit standards as per their respective grant instruments. They are carefully monitored.

It’s important to notes that the allegations of financial mismanagement were deliberately made by a former CCDA senior staff member who was dismissed due to disciplinary reasons sometime mid last year (2022). This individual had multiple grievances against CCDA for violating his employment contract and the Public Service General Orders. Additionally, the individual falls short to qualify for whistleblower protection under the Whistleblower’s Act since his dismissal and disciplinary actions which took place well before his present complaint of the purported allegations through the media. His alleged status as a purported “whistleblower” does not absolve him of the disciplinary actions.

Further, the allegation regarding spending of $150,000 on hotel accommodation in Port Moresby was justified for work on the all-important Carbon Market Regulations to regulate carbon trading in the country. It was also for the amendment of the Climate Change Management Act to make provisions for the National Climate Change Board, Carbon Market Regulations and Revenue Generation in the Act. CCDA utilized technical staff and experts from within government agencies instead of hiring expensive local or foreign consultants to reduce costs.

The CCDA has made significant progress during the past year in respect of its work. Our work demands a lot financially, but we continue to deliver with the limited operational funds available to us. The audited financial report for 2022 will inform how funds have been spent and the main programs and activities funded, such as the 27th Climate Change Conference (COP 27) in Egypt, the carbon market regulations, and other policy interventions undertaken.

Allegations of financial mismanagement must be supported by credible evidence and facts. Otherwise, they can be defamatory in nature and harm CCDA’s reputation. In response, I categorically reject these allegations and firmly state that under the Law of this Land, a person is innocent until proven guilty. While we respect the legal process, we condemn the behavior of the disgruntled former staff member who has taken to the media to air his grievances, in an attempt to smudge the Authority’s reputation rather than seeking redress through the courts as required under his contract.

As an organisation we remain firmly committed to transparency and accountability in all of our financial dealings. We understand that the allegations have raised concerns among the public, and we are fully prepared to address each of them as they arise. Our ultimate goal is to provide accurate and complete responses to any issues that may be brought up through the appropriate authorities, and to ensure tha tour operations meet the highest standards of ethical conduct.

As a Statutory Authority dedicated to ethical and responsible business practices, our commitment remains unshakable in the face of politically motivated investigations or malicious allegations by individuals seeking to assume the role of Managing Director. We will continue to operate with transparency and integrity, earning and maintaining the trust of our stakeholders and the public through accountable actions.

Thank you.

William Lakain

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