AUSTRALIAN CHARGED IN TASK-FORCE SWEEP OPERATIONS

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PRESS STATEMENT


16 JANUARY 2011

Australian national Timothy Rowland, in the capacity as General Manager,Sarakolok West Transport Limited was arrested on several charges including false pretence and conspiracy to defraud the Manus Provincial Government.



The circumstances are such that



i) the Manus Provincial Government submitted a proposal for the

purchase of a coastal vessel under the States Coastal Shipping

program in 2010 but were advised that funding had been exhausted.



ii) Without their knowledge, Sarakolok West Transport Limited (SWT)

was engaged by the Department of National Planning and Monitoring

in 2011 to purchase and deliver to the Manus Provincial Government

a vessel to the value of K7.5 million. SWT received the funds in full.



iii) SWT purchased the vessel but did not deliver it, instead they claimed

that variations (not asked for or approved by the Manus Provincial

Government) had to be done to the vessel.



iv) After having received the vessel, SWT then sought to extort

additional K6.5 million from the Manus Provincial Government over

and above the original K7.5 million purchase value to deliver the

vessel.

v) SWT also sought in the same contract of sale to receive K3.425

million for variations made to the structure of the vessel.

vi) In total SWT sought to extort from the Manus Provincial Government

a total of K9.925 million for a vessel (MV Murunga II) which had

already been purchased for K7.5 million by the State.



It is alleged that Mr Rowland actively used his position to try to force the

Manus Provincial Government to accept the vessel and variations and to have

the Manus Provincial Government pay K9.925 million for the delivery of the

vessel to Manus.

Sarakolok West Transport Limited is owned and operated by Mr Eremas

Wartoto.

Mr Roland has been detained and will go through the normal criminal

processes in the courts. He remains innocent until proven otherwise.



Ends

Authorised for Release

……………………………..

Sam Koim

Chairman

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