Aussie banker to stand trial in PNG

An Australian banker in Papua New Guinea has escaped conspiracy charges but will be
tried for misappropriation in a messy feud with controversial PNG businessman and
former politician Peter Yama.
John Maddison, a senior executive of Bank South Pacific (BSP), was charged with 50
counts of conspiracy to defraud and 45 counts of misappropriation in a case that has
caused great concern across the business community in PNG.
At a committal hearing in Port Moresby on Wednesday, Magistrate Sinclair Gora said
there was "no evidence" of conspiracy and the charges lacked credibility.
Magistrate Gora said, however, there were grounds for Maddison's misappropriation
charges to go to trial.
New Zealand-born lawyer Erik Anderson, whose law firm Gadens Lawyers worked for BSP
in their attempts to recoup money they say is owed to them since the early 2000s,
also had his conspiracy charges dismissed.
Mr Yama, a former government minister, last December won 7.6 million kina ($A3
million) in a legal battle against a motor vehicle insurance company, but BSP moved
to secure the money, claiming Mr Yama had millions in outstanding loans.
Mr Yama, a former police officer and serial litigator, claimed that BSP, their
lawyers and two employees tried to defraud him because of a vendetta dating back to
2001.
"I was the main man against the sale of the bank in 2001, I called an inquiry
against the bank (now BSP)," he said.
Maddison and his BSP colleague Robin Fleming, also a senior executive, were
subsequently arrested then released on bail.
Fleming will face similar charges to Maddison at a later date.
Mr Yama, who denies owing the bank, claimed the two BSP executives and others
conspired to defeat the course of justice, charges BSP has rejected as "ridiculous".
Earlier this month, PNG's National Court overturned a district court decision to
issue arrest warrants for Australian accountant James Kruse, PNG Law Society
president Kerenga Kua, Motor Vehicle Insurance Company boss John Mua and BSP company
secretary Mary Johns.
All are involved in the ongoing BSP Yama dispute.
There are reports that Mr Yama has used his influence in the judicial system, with
police and in politics, and that several people connected to the case have gone into
hiding for fear for their lives.
Gadens Lawyers has since stopped representing BSP in the Yama case after several of
their junior lawyers were assaulted and threatened outside their Port Moresby homes.