PNG's PM defends Cairns property deals

(AAP) Papua New Guinea Prime Minister Michael Somare and his minister son say they have nothing to hide over property deals in Queensland worth more than $1 million.

The Courier Mail newspaper on Thursday reported that PNG's Ombudsman Commission will
investigate the Somares' purchase of an executive-style apartment and a four-bedroom
house in Cairns.
Prime Minister Somare bought the $395,000 three-bedroom apartment with a private
plunge pool in inner-city Cairns in April last year, in a deal brokered by a Gold
Coast lawyer, the paper said.
Two months ago his son, State Enterprises Minister Arthur Somare, bought a $685,000
four-bedroom home with his wife at Trinity Beach, just north of Cairns.
The PNG leader, who will meet his Australian counterpart Kevin Rudd in Sydney on
Friday, said in a written statement that he had nothing to hide.
"This was a business transaction that was cleared by the PNG Internal Revenue
Commission (IRC) and the Australian Securities and Investment Commission (ASIC)," he
said.
"I am not aware of any formal advice either by PNG or Australian authorities that I
am being investigated."
Arthur Somare told AAP in Port Moresby that he detested the newspaper's suggestion
that his leadership of the $14.7 billion Exxon Mobil-led liquid natural gas project
was linked to the purchase of a house for his children.
"It is unfortunate I deal with a high-profile project and as such they wish to draw
connections," he said.
"I've sold a property here in Port Moresby to acquire a personal property in Cairns.
It is an investment for the future.
"Like my father before me, I take the same opportunity to educate my children in
Australia.
"I have purchased a property in Australia ... to make sure they have appropriate
housing while they are educated in Australia.
Somare said all the necessary procedures were followed including discussions with
PNG's foreign exchange review board and the IRC.
"I believe it is a non-issue, I detest the aspersions," he said.