The charges emanate from allegations of two audit contracts awarded to Frank Benabo and associates, to conduct an audit inspection on the Aitape and Mendi DSIP books in 2012 and 2013.
The main whistle blowers were former employees whose case remain subject to legal proceedings in the higher courts.
It is alleged no work was done and no report was provided for the private accounting firm engaged.
The Waigani Committal Court today dismissed the fraud case against Nauga, of Boregaina village, Rigo district, Central Province.
Magistrate Cosmas Bidar found the evidence in court was defective to support the allegations in two of the four charges when handing his ruling on the sufficiency of evidence.
He agreed with submissions made by Nauga’s lawyer, Paul Othas, and ruled there was insufficient evidence to make out a prima facie case, dismissing it and ordered for the refund of his bail.