CoI told valuer was pressured

THE value of the piece of land where the Motukea Wharf in Port Moresby is now located was falsely increased by more than K300 million, a lawyer says.
Gibson Geroro, who is the senior counsel assisting the Commission of Inquiry into the sale and purchase of the Motukea Wharf in Port Moresby, made this submission to the inquiry’s commissioner Sike Julian Toulik last Thursday.
He told the inquiry that the correct value of the piece of land is K410 million as per the evidence of then Valuer-General Gabriel Michael who testified in the inquiry in March last year.
Michael told the inquiry that he increased the valuation from K410 million to K725 million after being pressured by then Lands secretary Romilly Kila Pat and then Curtain Brothers general manager and Ballimore No.39 Ltd director Justin McGann.
Geroro asked the inquiry to accept Michael as a credible witness and accept his evidence in its entirety.
“There is no evidence that Michael had engaged in improper conduct in a previous occasion or was notorious in that regard except for his own admission that the K410 million Moutkea port valuation was true and correct, whereas the K725 million valuation was false,” he said.
Geroro said Michael gave evidence to the point where Michael incriminated himself.
He also said that McGann did not front up to the inquiry to explain if he had indeed had a conversation with Michael.
Geroro said Michael testified that he was told by McGann to increase the valuation from K410 million to K725 million.
“Based on the evidence that is before this commission, we state that Ballimore 39 Ltd and Justin McGann be referred to the Royal PNG Constabulary for investigation for fraud,” he said.
Geroro added that the evidence of then Lands secretary Romilly Kila Pat was baseless.
“He (Michael) received a letter from the Independent Public Business Corporation (IPBC) managing director to do a valuation,” he said.
“He did a valuation for K410 million (and) he produced that to Kila Pat. For some reason Pat was not happy with that and Michael was then directed and received a call as well from McGann.”
Lawyer Mal Varitimos, who represented the McGann and Ballimore No.39 Ltd, told the inquiry on March 24, that proper process was followed in relation to the sale and purchase of the Motukea wharf.
He said any evidence of pressure from Michael concerning the valuation report was erroneous.
“Michael’s evidence is contradicted by Kila Pat’s evidence, is not credible and should not be relied upon,” he said.
“As a valuer-general on his own evidence he signed, sealed with his official seal and certified as true, and correct a valuation report which he now says is false.
“The two reports he prepared are both dated Sept 23, 2014, when on his own evidence he did not sign both valuations on the date he certifies they were signed.
“The evidence before the commission establishes that due and proper, legal and administrative processes were followed, and that the PNG people have greatly benefited from the acquisition of the Motukea wharf,” Varitamos said.
The objective of the inquiry is to establish the facts surrounding the relocation of the Port Moresby wharf; the decision on the selection of Motukea and the cost of the relocation as well as individuals and entities that were instrumental in the negotiation for the State and all who benefited from the deal.
The inquiry resumes today.