17 Jun 2014

PNG's O'Neill denies fraud allegations

7:19 am on 17 June 2014

Papua New Guinea's Prime Minister Peter O'Neill has strongly denied allegations against him describing a warrant for his arrest as a politically motivated stunt.

Mr O'Neill yesterday refused to go in for questioning in response to the warrant issued by PNG's fraud and anti-corruption authorities.

Papua New Guinea Prime Minister Peter O'Neill.

Papua New Guinea Prime Minister Peter O'Neill. Photo: RNZ

The Post Courier reports Mr O'Neill's application for a stay in proceedings will be heard in court this morning.

Mr O'Neill said the warrant is suspicious and based on false allegations.

The warrant is in relation to alleged unlawful payments of US$29m in state funds to a law firm led by Paul Paraka.

The Prime Minister is alleged to have signed a letter authorising some of the payments, but he claims his signature was forged.

In a statement Mr O'Neill says he had earlier been cleared in a thorough investigation by the anti corruption task force Sweep.

The ABC reports Papua New Guinea's anti-corruption task force says fresh evidence shows Mr O'Neill has acted "dishonestly and corruptly".