Placer: How leaders broke the law

The buying of shares in Placer Pacific by politicians and senior public servants could plunge the country into a constitutional crisis.

For all politicians and senior bureaucrats who bought shares have broken the law.

The country’s Leadership Code, en shrined in the constution, states: “Unless written approval is obtained from the Ombudsman Commission, leaders and their families must not hold shares or investments in any foreign-controlled enter prises.” Placer Pacific is foreign-controlled.

All MPs, department heads, statutory body heads and constitutional office hol ders are designated leaders for the pur poses of the code.

Thus all those leaders who bought shares could face charges by the Ombudsman Commission. The problem will be in finding somebody to officiate.

The chief ombudsman, Charles Maino, also bought shares (10,000) through his business company. Ombudsman Ango Wangatau also acquired a holding. So did four national and supreme court judges.

Justice Minister Warren Dutton agreed that it was “technically and legally” against the law for leaders to obtain shares in foreign-controlled enterprises. “But,” he said, “charges cannot be laid by the Ombudsman Commission because the Chief Ombudsman has also bought shares.” He said the commission may be able to give retrospective permission for the purchases as had been done in the past.

However, former Chief Ombudsman and current close adviser to Mr Wingti, Ignatius Kilage (who also bought shares) said retrospective permission for such purch ases had not been normal procedure during his term of office.

Now, Chief Ombudsman Maino has decided he and his commissioners should stand aside and has invited Judge Kubulan Los (who did not buy shares) to chair an inquiry into the whole affair.

And Opposition leader Michael Somare, who was heavily critical of Sir Julius Chan’s share purchase could also be involved in any inquiry. He bought 5,000 shares through his family company Karao Investments Pty Ltd.

Michael Somare - criticisms backfired.