Philip Nauga

The prosecution stemmed from allegations that Mr Nauga, whilst the Auditor-General around 2013, fraudulently awarded two contracts to an accounting firm, Frank Benabo and Associates, to audit the DSIP funds of two districts.

Mr Nauga was criminally prosecuted around March 2013, two days before his contract of employment as the Auditor-General of Papua New Guinea expired.

He was slapped with four charges which included abuse of office, official corruption, conspiracy to defraud and misappropriation.

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.

Director of the National Fraud and Anti-Corruption Directorate, Mathew Damaru confirmed that Nauga was arrested with charges of abuse of office, conspiracy to defraud, and misappropriation of 247,500 thousand kina.

The charges emanated from an allegation that two audit contracts were awarded to Frank Benabo and associates, to conduct an audit inspection on Aitapei District’s DSIP books in 20-12 at the cost of 123, 750 kina.

 The other contract was awarded to Mendi District DSIP in 20-12 at the same cost as the previous contract but for a lesser period of time.

In a statement, the OC said it conducted an investigation, granted Nauga a right to be heard (which he responded to), and having deliberated on the matter, has determined that there is a prima facie case that Nauga has been guilty of misconduct.

“As required by section 20(2) of the Organic Law on the Duties and Responsibilities of Leadership, the Commission has notified Nauga of its intentions to refer the matter to the public prosecutor.