Gadens withdraws from PNG fraud case after threats

An Australian law firm has reportedly withdrawn from representing Papua New Guinea's largest financial institution after its staff were threatened by armed thugs in Port Moresby.

The Australian reports that Gadens Lawyers had been representing Bank South Pacific in a court action where the bank is attempting to recover money from a company owned by former MP and policeman, Peter Yama.

This month, two Australians who worked for the bank were arrested after Mr Yama accused them of attempting to defeat the course of justice.

The newspaper quotes Gadens' Port Moresby office senior partner Winifred Kamit saying the firm withdrew its representation of BSP following threats against two of its lawyers.

Ms Kamit said in a recent incident, five men in a car with tinted windows drove up to a young lawyer and put a gun to his head.

“The thugs got out of the car and said 'That's him, he was the one who was in the court’,” she told The Australian.

She says they put the gun to his head and said to him in pidgin "What do you think you are going to achieve?".

Earlier this week, the PNG businessman Peter Yama denied that he is trying to intimidate his opponents.

Australians Robin Fleming and John Maddison, both senior executives with Bank South Pacific, are out on bail after being charged with conspiring to defeat the course of justice.

The charges relate to the bank's dealing with a company owned by Mr Yama.

The Yama Group recently won a $3 million payout for an insurance company, but the bank moved to secure the money to cover an outstanding loan. Mr Yama has gone to court alleging the bank and its employees have defrauded him.

Bank South Pacific says the charges are ridiculous, while the Australian High Commission in Port Moresby has taken up the issue with the PNG government.

Mr Yama denies he is using his influence to intimidate his opponents. He told our correspondent the latest arrests are the result of an investigation by the Fraud Squad after he lodged a complaint with them two years ago.

The Fraud Squad has been available for comment.

source: Islands Business