Comment from ACT NOW!: Lets not forget O'Neill has NOT acted to revoke the illegal SABL leases. That remains a big blot on his anti-corruption credentials!!

By Rowan Callick in The Australian

PAPUA New Guinea's Supreme Court has overturned a three-year injunction preventing the publication of an 812-page commission of inquiry into false compensation scams that cost the country more than $300 million.

The findings have previously been published only in The Australian, which responded to the injunction by refraining from distributing to PNG copies of the newspaper that contained the articles, and from posting them on its website.

This move, following other recent events, points to a possible turning of the tide against one of PNG's most pervasive problems, with the country ranked 150th by Transparency International out of 176 countries on its corruption index last year.

The COI, conducted by PNG judge Cathy Davani, New Zealand judge Maurice Sheehan, and PNG business leader Don Manoa, found that a nexus of prominent officials, lawyers and others, stole $300m by inventing claims for compensation from the government, which highly placed members of the conspiracy then paid out.

The report recommends the criminal prosecution of 57 prominent people, many still in top positions. It had been injuncted immediately after then prime minister Michael Somare tabled it in parliament.

The report finds the Finance Department "ignored specific directions of the government, disposing of funds budgeted by parliament as if the state was not there".

Jenny Hayward-Jones, director of the Melanesia Program at the Lowy Institute, told The Australian when the report was concluded three years ago that it raised the question of "what Australians from Treasury, Finance, Solicitor General's and other offices have been doing in PNG".

The injunction was obtained in 2010 by the former Solicitor General Zachary Gelu and lawyer Paul Paraka, who are both named throughout the document.

Mr Paraka, the sole partner and owner of PNG's largest law firm, with 22 branches around the country, has separately been charged, early last month, with conspiring to defraud the state of $28.8m.

He faces five counts of conspiracy to defraud, nine of stealing by false pretence, two of money-laundering and two of misappropriation, and is out on $20,300 bail.

The same body that pursued charges against Paraka - Task Force Sweep, established by the government to tackle administrative corruption - also successfully recently prosecuted PNG's former planning minister.

Paul Tiensten was convicted of misappropriation over a $4m grant made when he was a minister to controversial businessman Eremas Wartoto, to help him start an airline that never got off the ground.

Judge Gibbs Salika said that Tiensten, now out on bail until he is sentenced early next year, had used his "political muscle" to force the grant through.

And legislation to establish an independent commission against corruption is now before the parliament.

"We are ready to go" with it, Prime Minister Peter O'Neill told The Australian last week.

"It is under review as a result of public requests for more debate," he said, but expected it to be finalised by February.

"A lot has been said about corruption in this country," Mr O'Neill said.

"But no government has made a more determined effort to tackle it than we have."