PNG National Court finds Paraka guilty of misappropriating millions of state funds

 The Papua New Guinea National Court has convicted lawyer Paul Paraka on five counts of misappropriation of monies belonging to the State totaling over K162 million.

The National Court presided by Justice Teresa Berrigan found Mr. Paraka guilty of dishonestly applying to his own use and the use of others these monies, which belong to the State contrary to Section 383(1)(a)(2)(d) of the Criminal Code Act.

Lawyer Paul Paraka found guilty of misappropriating millions of state funds: Photo and article by Cashmir Waken, NBC News

The Court handed down its ruling last Friday (May 26th, 2023).

The National Court found Mr. Paraka, the principal lawyer of the Paul Paraka Law firm guilty of misappropriating K162,860,194.96 of State monies between 2007 and 2011.

In the case file, it is alleged that more than K162 million was paid by the Department of Finance to the ultimate benefit of Paul Paraka, through seven legal firms from a period of five years commencing on 24th April 2007.

The payments where done purportedly for outstanding legal fees.

In the State's case, it is alleged in 2000, Mr. Paraka's law firm was engaged by the Attorney-General and the Solicitor-General's office to work for and on behalf of the State in civil litigation matters in Court.

On October, 17th, 2006, the State withdrew its instructions to Mr. Paraka's law firm and instructed the law firm to seize to act as of Monday November, 20, 2006.

Investigations revealed that in 2007, the State made a number of payments to seven legal firms for outstanding legal bills, where its alleged that Mr. Paraka had used the legal firms as conduits to access these monies.

The Court found through evidence presented that the monies were paid through 65 cheques ranging in value from K1 million to K5 million to PKP nominees limited, a property investment company owned by the accused and also to seven other law firms.

It is alleged the 7 law firms involved in every transaction retained k30,000.00 to K50,000.00 and sometimes as much as K400,000.00 before immediately passing the proceeds to Mr. Paraka's law firm or PKP nominees limited.

Mr. Paraka will return to Court on June 23rd, 2023 for parties to make submissions on penalty of the charges he was convicted for.

NBC News PNG/One PNG News 

Next: PNG eyes stronger economic relations with Republic of Korea