4 Nov 2008

PNG police to revisit arrest of foreign lawyer

2:36 pm on 4 November 2008

Papua New Guinea's police commissioner says he will personally look into the arrest of a prominent New Zealand lawyer on 49 counts of fraud.

The lawyer, Erik Anderson, who is a senior partner of Gadens Lawyers, is alleged to have conspired and defrauded Yama Group of Companies after representing the Bank South Pacific since 2002.

The Yama Group alleges BSP inappropriately took about four million US dollars fom its bank account and then paid part to Mr Anderson as legal fees.

The news agency AAP says it understands that Mr Anderson had represented BSP in a case against Yama to recoup unpaid debts.

Gadens Lawyers have confirmed Mr Anderson had been arrested last week but would not comment further.

Mr Anderson is now out on bail.

In September, Peter Yama, who is a former MP, successfully used the courts to contest the governorship of Madang Province on PNG's north-western coast.