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Businessman jailed for 10 years

Date Published: October 18, 2024

A businessman from Kokopo in East New Britain province was sentenced to 10 years for charges of misappropriating public funds. 

Eremas Wartoto, 54 at that time was the owner of Saralok West Transport and was awarded a K7.9 million contract in November 2008 by the Government to rehabilitate the Kerevat National High Schoolin East New Britain. The facilities included the school’s dormitories, water supply and sewage systems. It was agreed that 85% of the money would be paid in advance to commence the project and the remainder would be paid upon project completion.

It was alleged that, between January and June 2009, Mr Wartoto misused the K6.7 million (85%) advanced payment by paying unrelated bills for debts incurred prior to the Kerevat contract and purchase of vehicles for his hire car business.

In October 2009 the remaining 15% was released by the National Planning department even though Saralok West Transport had not completed the project.

The National Court found and charged Wartoto, on the first count of misappropriating the K6.7 million (85%) but on the second count of misappropriating it stated that there was no criminal intent in misappropriating the K1.89 million (15%) as it was released by the Department of National Planning and Monitoring without assessing the first payment. Moreover, it was concluded that only K345 662 was spent on the Kerevat National High School. Wartoto was sentenced to 10 years in prison and the court ruled that if he repaid K3.9 million within four months, then four years would be suspended, and he would be placed on good behaviour bond for three years. In 2019, an appeal against this conviction was dismissed by the Supreme Court.