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Asia-Pacific Network: 22 March 1997

MERCENARIES: SANDLINE CONTRACT TIP OF PNG'S CORRUPTION ICEBERG

Prime Minister Sir Julius Chan has bowed to pressure and "stood down". The Sandline contract has been suspended and the mercenaries - except for their leader - have left Papua New Guinea. But sacked Brigadier-General Jerry Singirok has opened the pandora's box of national corruption.

By DAVID ROBIE in Port Moresby



PORT MORESBY: The now infamous Sandline mercenary contract, the Chan government's gamble on a quick-fix solution to the eight-year-old Bougainville war, is just the tip of the iceberg.

Bottom line for most Papua New Guineans who rallied to the call of sacked military commander Brigadier-General Jerry Singirok this week is the image of a government wallowing in allegations of widespread corruption.

For many community leaders and politicians, the Chan government has lost touch with the people and its credibility is devastated.


Protest outside Parliament Haus.
Photo: ALAN ROBSON
Although Prime Minister Sir Julius Chan has bowed to pressure in the wake of a week of protests [he later "stood down", on March 26 after soldiers and protesters blockaded Parliament but was careful not to resign in ambiguous circumstances], petitions for his resignation, rioting and looting, to establish a commission of inquiry into the Sandline mercenary affair, this has only partially defused the tension.

The government has already blown US$36 million on the first three-month phase of the operation and copies of the contract - now public property after three Papua New Guinean newspapers published the full text in special editions on Friday - make it clear there would have been a blow-out to the tune of US$120 million if the deal had run its full course.

But for many in the country, a deeper malaise needs to be tackled - a cynical belief that the political system and institutions adopted by Papua New Guinea at independence from Australia in 1975 are faltering. The robust democracy is gravely at risk.

Corruption and lack of accountability are the root cause. The former governor of the Central Bank of Papua New Guinea, Sir Mekere Morauta, once said corruption under the Chan government was "systemic and systematic". He was sacked by Chan from his influential position.

Sir Mekere is among a group of talented Papua New Guineans who are contesting the national elections in June to try to restore principled leadership in the country.

For a prominent constitutional lawyer, Loani Henao, president of the PNG Law Society, the issue of corruption is far more important than the Sandline contract among this nation of 4.1 million people's grievances.

"This is all about corruption, not about a constitutional crisis. Sandline is just the tip of the iceberg," Henao says.

"This is what the people are mainly complaining about - it is up to the lawyers and technical people to decide whether the Sandline contract is good or bad.

"The public interest is whether the leaders, including bureaucrats, have benefited. Because that is the main suspicion, not only in Papua New Guinea but overseas."

Brigadier Singirok, a popular "young Turk" style of leader who has done much over the past year to modernise and restore some pride in the demoralised PNG Defence Force, opened a pandora's box when he made allegations about corruption.

Speaking in his Radio Kalang talkback broadcast last Monday, Singirok appealed to Papua New Guinea citizens and organisations who have been unjustly treated by the government to "expose the actions of dishonest leaders".

He cited allegations of corruption on a grand scale such as:

Allegations of corruption on a large scale have also dogged the timber industry which is dominated by Malaysian logging companies.

Another factor is the alleged role of a private security company linked to the prime minister's family, International Security Services Pty Ltd. Two agents, purportedly employees of this company, were arrested at Taurama barracks on Wednesday night, allegedly on a bid to rescue detained Sandline chief executive Lieutenant-Colonel Tim Spicer.

One of the arrested men was John Butler, a man of mixed Rabaul and New Zealand descent who claims to be related to the prime minister. He was said to be armed with a 9 mm pistol and 22 rounds, included an outlawed dumdum bullet and and an armour-piercing bullet.

Among the harshest critics of the Chan government has been John Momis, a former Catholic priest and the regional MP for Bougainville. He accuses the government of committing treason and fraud by hiring the mercenaries and appropriating millions of kina without the approval of Parliament to pay them.

"Civilised people negotiate, not fight," says Momis, one of the "fathers" of the constitution. If the mercenaries had been allowed to continue and carry out Operation Oyster on Bougainville and reopen the giant Panguna copper mine, "they would do their job and leave us with the political problem still to be solved".

Momis, then Communications Minister, and his Melanesian Alliance colleague, Bernard Narokobi, a former Justice Minister, resigned from the Chan government in 1995 because of the contempt being shown for democratic process. It is rare for a politician to resign on principle in Papua New Guinea.

Although the Chan government made a promising start in 1994 with a bold step to secure a peaceful resolution of the Bougainville conflict, it is now being challenged by newspaper editorials and opposition over a "drift to dictatorship".

"Papua New Guineans must not forget the open statement of the prime minister that he intends to form a one-party government after the election," says Opposition Leader Roy Yaki, who has been worried that the mercenaries would be used in the elections.

"Sir Julius owes a lot more explanation. Isn't Papua New Guinea heading towards dictatorial leadership? Isn't it too remote a fear that such foreign mercenaries will not be used to enforce a desired political system in the country?"

Brigadier Singirok now faces a dilemma. While the troops loyal to him are demanding that he be reinstated as commander, he himself doesn't want that to happen while the commission of inquiry is in place because of the allegations he has made.

The commission, headed by National Court judge Warwick Andrew, will have until April 18 to announce its findings. The terms of reference for the inquiry is to inquire into the circumstances surrounding the contract relating to the engagement of Sandline International.

But Singirok has renewed his demand that Chan, deputy Prime Minister Chris Haiveta and Defence Minister Mathias Ijape resign. Unless they do so, he believes, the commission will lack credibility, fail to gain access to the right documents, and it could degenerate into a whitewash.

"[Chan] must step down because he is implicated in the whole Sandline contract," Singirok said.

"He cannot issue the terms of reference while he is prime minister. This is not justice.

"He must step down so that the commission will also investigate his involvement in the Sandline issue in his capacity as the prime minister who understood the implications of the contract from the start until it was endorsed."

The government has mounted a campaign in an effort to discredit Singirok. The Defence Ministry has booked advertisements in newspapers claiming the sacked defence commander had been involved all the way with the contract.

Deputy Prime Minister Chris Haiveta says the government has nothing to hide and has set up the inquiry to set the record straight.

"We want our names cleared before we go to the polls," he added.

Defence Minister Mathias Ijape says: "I want to let the people of PNG know that Singirok was involved in negotiations from day one. The commander successfully negotiated the terms and conditions of the contract with Sandline International.

"I am shocked that the commander says he is not involved."

But this view doesn't impress many Papua New Guineans who see Singirok as a heroic whistleblower in spite of the implications of his rebellion for democracy and the constitution.

"The brave action by Brigadier Singirok in coming out publicly to oppose what he believed and knew was wrong must serve as a 'lighthouse' guide to all Papua New Guineans - and especially those that hold positions of trust," said the national weekly The Independent.

"And leaders, including prime ministers, must also learn from this lesson."

Sir Mekere Morauta and Meg Taylor, an outspoken former PNG Ambassador in the United States, are among a group of prominent citizens who have called for a caretaker government to be set up until the elections.

And the future of Brigadier Singirok? "Although I've been removed as commander, I'm still a soldier and I've got 15 more years before I retire."

  • David Robie is a New Zealand journalist and acting head of the University of Papua New Guinea's South Pacific Centre for Communication and Information in Development.
  • Copyright © 1997 David Robie and Asia-Pacific Network. This is a PHOTOCOPY for educational and personal use only.


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