Conservatory

building controversy

Controversy came to Papua New Guinea all at once.

Before the Skate allega tions were brought to public attention, another scandal caught the interest of the people.

But this time it was to do with the for mer prime minister, Sjr Julius Chan and his role in the purchase of the Cairns Conservatory building. According to the auditor general’s report the building was bought with PNG Public Officers’

Superannuation Fund (POSF) for $A 18.72 million (approximately SUS 11.69 m) in November 1994 - this was three times its true market value.

Private valuations obtained by the audi tor-general showed that at the time of sale, the market value of the property was between $A5.75 million (SUS3.Sm to SAB million (SUS4.Sm).

The report also referred to the relation ship between Sir Julius and Australian property developer Warren Anderson in the lead-up to the sale. Anderson’s company, Tipperary Developments Pty Ltd, had pur chased the building for $A9.75 million (SUS6m) a short time before it disposed of it to the POSF for nearly twice the price.

The then Consul in Cairns, Jacob Lemeki said Sir Julius introduced him to Anderson and asked the consul to “involve them in finding a property in Cairns on behalf of the PNG government”.

Lemeki said he believed Anderson was “very well known” to the former prime minister and another former prime minis ter, Pias Wingti, and that he and his com pany might have been involved in other deals in PNG. During the investigations.

Sir Julius said he had not met Anderson in Cairns, however, he admitted that he told Lemeki to consult with Anderson to find a property for the PNG government because of his experience in the field.

POSF’s managing director Ereman Ragi told the investigations that there was political pressure to expedite the sale from former minister Sir Albert Kipalan and Nick Violaris - whom he described as an