An Australian entrepreneur has become the focus of an international criminal investigation into whether he bribed Papua New Guinea ports officials to help a multinational company win lucrative contracts.
Don Matheson, a one-time Australian A-League soccer club owner who became a government consultant in PNG, was embroiled in a payments scandal after revelations by the ABC and the Organised Crime and Corruption Reporting Project (OCCRP).
The joint Pandora Papers investigation in March uncovered questionable offshore payments involving PNG Ports officials, Mr Matheson, and multinational port operator ICTSI, which paid the Australian millions in consulting fees.
Leaked bank records show Mr Matheson around the same time paid more than $100,000 in apparent benefits to officials, including 4WD vehicles, racehorse fees, and medical equipment.
PNG Police are investigating whether these payments were bribes or legitimate side ventures, unrelated to government contracts.
It will scrutinise Mr Matheson's dealings with officials at PNG Ports Corporation, the state-owned enterprise that went on to receive $621 million in Australian government funding.
Chief inspector Joel Simatab said the taskforce would investigate whether Mr Matheson was "paying bribes to PNG Ports Corporation officials" and would be bolstered by overseas law enforcement.
"PNG police are being assisted by Interpol and Australian authorities," he told the ABC.
"As part of the investigation, [we] will be investigating other engagements involving Don Matheson in PNG".
The police probe is politically sensitive for the government led by Prime Minister James Marape, who was drawn into the scandal after Mr Matheson boasted about his close ties to the PNG leader's family and being golfing partners.
For example, Mr Matheson has told the ABC the PNG prime minister had asked him to travel to the Philippines to pay for medical treatment for his brother, Larsen Marape.
Mr Marape had distanced himself from Mr Matheson, denying any knowledge of his business dealings.
When the prime minister ordered the country's corruption watchdog to investigate PNG Ports in response to the ABC report in March, he said he knew little detail about Mr Matheson's activities "apart from the fact that he was a town planner".
If wrongdoing was found, Mr Marape said he would take a hard line.
"Whether he plays golf with me or not is secondary. I don't tolerate corruption. I don't tolerate illegal activities," the prime minister told parliament at the time.
'Prime land' after PM's introduction
It can now be revealed Mr Marape had two years earlier made a key introduction between Mr Matheson and his powerful state enterprises minister William Duma, who helped the Australian lobby for a government contract.
Documents obtained by the ABC and OCCRP record Mr Matheson thanking Mr Duma for a meeting to discuss his pitch to develop state-owned waterfront land in Port Moresby.
"I would like to take this opportunity to formally acknowledge and thank you for making time available to meet me on Tuesday April 29, 2021, following my introduction to you by the Prime Minister, Hon. James Marape, MP about my role in town planning and design," Mr Matheson wrote to Mr Duma.
The Australian detailed his company's proposal to Mr Duma "to provide strategic advice to the government for the commercialisation of the old PNG Ports site in downtown Port Moresby".
Two months after their meeting, Mr Duma forwarded that proposal in a letter to the boss of Kumul Consolidated Holdings, the state-owned corporation in charge of the site.
"It is the government's intention to develop this prime land and monetise its value in the interests of our country, as soon as possible," Mr Duma said.
"I suggest [you] enter into discussions with [Mr Matheson's company] CSG in relation to the proposal by CSG."
The Kumul boss did not immediately commit to working with Mr Matheson but told him to "feel free to call me to discuss your interest".
It is unclear if Mr Matheson won the contract. Kumul did not respond to ABC questions.
Mr Matheson told the ABC last November he had met the new Kumul managing director to discuss "our planning report and ... we've nailed it ... he's thrilled, the PM's thrilled".
Revelations of Mr Marape and Mr Duma's past support for Mr Matheson now raise questions about their response to the offshore payments issues in relation to PNG Ports.
Despite the dealings between the pair over the land redevelopment deal, Mr Marape appointed Mr Duma to oversee an internal government inquiry, separate from the police and government reviews, into the offshore payments scandal.
Critics say there was an appearance of a conflict of interest for Mr Duma to be involved with the review and someone else should be appointed.
Peter Aitsi, the PNG chairman of anti-corruption group Transparency International, said proven connections between Mr Matheson, the prime minister and his key minister "would cause us grave concern".
This was because "potentially those relationships could undermine proper investigations … that would be a major, major issue for us," he said.
"If there is proof that there is a relationship between [Mr Matheson and Mr Duma], then rightfully so, Mr Duma should be removed from any involvement in any inquiry or investigation."
Mr Duma said he could not respond to questions from the ABC unless it could provide "written approval" from the Australian Communications Minister, Michelle Rowland, "to approach in the manner you have chosen".
He denied having any conflict of interest because "no such 'dealings' [with Mr Matheson] took place".
"I must also put you on notice that any articles which you write concerning the affairs of a sovereign country which have no direct relevance to current public interest matters concerning the people of Australia, will leave us with no option but to raise our concerns about your conduct with the Australian federal government," he said.
Mr Marape did not respond to questions.
Another deal which could be scrutinised by PNG Police as part of their broader probe into Mr Matheson's dealings is a $2 million town planning contract won by his company CSG in the PNG highlands in 2016.
The ABC and the OCCRP have uncovered irregularities around the tender.
Tender documents show the Hela provincial government listed Mr Matheson's own subcontractors, MG Group and EJE Architecture, as rival bidders.
However, both firms have denied any knowledge of the bids.
MG Group principal Matthew Grbcic said: "We didn't tender for it. I don't even think ... I did any work on that particular job."
EJE Architecture director Michael Rogers said: "I'm 95 per cent certain that [the bid wasn't] ours and it sounds like it's dodgy."
Mr Matheson declined to comment on this contract and has previously denied any wrongdoing in PNG. His lawyer did not respond to questions from the ABC.
Editor's note: An earlier version of this article contained a caption describing the letter from Mr Matheson to Mr Duma as a development proposal. The caption has been amended to reflect that the proposal was for Mr Matheson's company to provide planning advice regarding the development. The article has also been amended to reflect that Mr Duma forwarded the letter to state enterprise officials with the suggestion that they enter discussions with the company.
Read a letter from Don Matheson to PNG's Minister for State Enterprises, William Duma.
