The news magazine of the South Pacific · since 1930

Pacific Islands Monthly, 1 August 1996Vol. 66 No. 8

Marie-Noelle Ferrieux-Patterson,

pp. 24-25 · Read in the full issue

Ombudswoman speaks out on Vanuatu

who was appointed two years ago, is Vanuatu’s first ombudsman. Just after releasing her report, on 4 t i u , . , , f. . r July he explained what her perception of the mifl. ed^ Cam xY aS; xt n r- PIM: Mrs Mane-Noelle Ferneux- Patterson, the report you released early July reveals what you call a scam. What is thls 1 i^ I *T^ ou T t ; . , MNFP: It appears that country leaders in Vanuatu were duped into believing that visiting groups of so-called promoters or financiers were able to secure vast profits for Vanuatu if the country leaders would I nn th£ n- WUh Tl. ten § uarantees f ° r L SSIOO million, and then they would be able to secure on that financing several infrastructure projects. As I said in my report, for whatever reasons - whether ignorance or greed or both our leaders at the highest level went along with this mC p e iM. le v Plot ' .i n 9 xJ^J 0U J a thlS P 0t a sca . m - .m , I 68 ’ • U aPPCarS fr ° m my research that this is a scam.

PIM: You also say that Vanuatu is facmg bankruptcy? How real do you think thK Ux^D. IS L . . .

MNFP. At this stage, there are bank guarantees circulating overseas and

because of the amount involved in this transaction, if anything goes further, that represents twice the foreign reserves of v , , , , , PIM: You accuse top level leaders of Vanuatu...

MNFP: The main one involved is the finance minister who organised and followed up the scheme from the foreign proposals. He convinced and got signatures of both the P rime minister and the governor of the Reserve Bank, even though they were reluctant.

PIM: So what do you recommend?

MNFP: I recommend that Finance Minister Barak Sope be dismissed, because there are gross breaches of the j aw and j n y anua tu, like in many countries, there are financial rules which are there to prevent this type of accident hap-

pening-

Also, some reprimand should occur between the president of the Republic and the prime minister because there should be commitment for everyone to respect the laws of Vanuatu - Some other people should be dismissed, like the governor of the Reserve Bank and the first secretary of the minister of finance.

I think it is vital for Vanuatu’s good name that my recommendations are car-

ried out quickly.

It is important from the point of view of a responsible and accountable gdvem- PIM: Do you think these recommen dations will be followed?

MNFP: My office wouldn’t have con ducted this investigation if we didn’t expect the recommendation to be carried out.

PIM: Last year, you made similar rec ommendations regarding the previous finance minister and at the time, you had to be placed under police guard. Do you think your personal security -in endan gered?

MNPF: No, I think sometimes there might be a bit of reaction like this to fear, but I don’t (need) anything like security in my daily life one of the advantages of living in Vanuatu is that concerns like this have always been minimal.

And, generally speaking. I’ve always had support from the highest leaders in the country, including the prime minister him self.

PIM: Do you think he would still sup port you on that matter?

MNFP: Prime minister Maxime Carlot created my position, which was provided for in the Vanuatu Constitution. He initiat

ed the creation of the ombudsman and I think he will respect the constitution.

PIM; What help did you get from financial experts in your investigation?

MNFP: First, my own background is banking at the highest level. I was also chief executive of a trust company for some time, so my background is very much in my field.

But to confirm what the suspicions were, we have used experts in the finan cial field here, in Australia, in the United States, and we even hired international solicitors in the States who have checked our suspicions and have confirmed that they were correct.

PIM: An Australian citizen is still in jail in Port Vila in connection with this scam. Has your report helped arrest him or lead to his arrest?

MNFP: Yes, there is a relation. But the public prosecutor is also investigating the matter, and I’d rather not say anything that could prejudice their own investiga tion.

PIM: Will this matter go further in the

Supreme Court?

MNFP: I believe, yes, this matter will go before the court and will be probably be exposed further. But that’s the respon sibility of the public prosecution and the court. ■