Bewani Oil - an analysis of the implications.

By Susan Merrell

Bonny Ninai, the lawyer who facilitated the deal, now
a board member of PNG Forest Authority

Not having a very good head for business, I asked my forensic accountant husband to explain the ramifications of what has transpired according to the article below. What he explained may be useful.

Apparently, there are some inherent inconsistencies in the account, however the main points:

1. Belden Namah, it seems, has very cleverly avoided culpability by not being named as a director of any of the companies involved. However, he has received substantial cash benefits (around $US450,000) and one assumes that these were in the form of commissions. As a Minister of the PNG government, this is a gross conflict of interests as he is earning commissions by exploiting his position. He should be either a business man or a politician. Politicians ought to do deals for the good of the country NOT to make themselves rich taking advantage of their political positions.

2. Jimmy Tse, described as Namah's "business partner" is the 'fall guy'.

3. Tse has sold the same benefit to two different companies. He has been able to do this because Andrew Lim of Maxland PNG (the original partner) was negligent in not bothering to get shareholder certificates etc. before he handed over the money. The question is: was it criminal fraud that Tse didn't register the transfer of shares while still accepting payment and funds? The deal was never registered and by the time he found out, Lim's supposed 80% had been sold to another company - Million Miles Group Ltd.

4. A practice known as 'flooding' took place to increase the number of shares. Traditionally the percentage (not the static number) of shares owned after 'flooding' is the same as before the action. This usually takes place with the consent of all shareholders. Apparently, Tse variably either owned all shares or the bulk of them after the flood

5. Where is the rest of Lim's $10 million?

6. There are a whole lot of landowner issues too. Why did Tse own all the shares in BPODL when it was supposed to be a "landowner company" for instance?

If the facts as presented are correct then Mr. Tse has breached many of the laws governing the management of companies. It appears that these breaches have occurred with Belden Namah's full knowledge maybe even agreement or under his direction.

Strory