PNG Blogs, the political activist, whistle blowing online corruption watchdog website has been keenly following the NASFUND illegal loan scandal. Here is an excerpt:
“Papua New Guinea I have been waiting for Rod Mitchell to respond to my last revelation on the illegal bond issue but he has decided to go into hiding. This revelation I note has been supported and corroborated by newspaper reports by independent journalists reported on this site.
Someone has aptly picked up what actually happened in the political realm, when Ministers Arthur Somare, Tiensten, Tammur and one other approached the Prime Minister and gagged him from going public about Rod Mitchell forging his signature. The moneys were already released by Rod in an illegal bond issue. They tried to cover it all up from media attention.
The questions still remain what happened to those funds? Who got them? Did the Pollies pocket any? If it is an illegal bond issue, is the State obliged to repay the moneys? ( It appears the State is not liable to repay the moneys to Nasfund). This leaves the Nasfund out of pocket to the tune of K125 Million.
The question is did the Board of Nasfund approve this bond issue? Where are the Board papers? How can the Board approve a bond issue that is outside the Public Finance Management System, outside the Central Bank requirements, and outside the Department of Treasury processes as sanctioned by the State Solicitor, and finally approved by Cabinet?
How can the Board of Nasfund ever deem this a legitimate investment? The answer is- They cannot.”