PNG army chief knew of deal: British mercenary

PNG army chief knew of deal: British mercenary

PORT MORESBY (Reuter): The British soldier who led 70 African
mercenaries into Papua New Guinea said yesterday that rebel army
chief Jerry Singirok was in on the mercenary plan from the start
and negotiated its details.

Retired colonel Tim Spicer told a public inquiry in the PNG
capital that Singirok -- who later led opposition to the
mercenaries -- attended a meeting in Australia almost a year ago
when the $36 million mercenary contract was first discussed.

"Singirok has been very much aware of the details of the
proposal, the contract and the total operations," Spicer said.

Singirok was sacked last month after he sparked a political
crisis in the South Pacific nation by demanding the resignation
of Prime Minister Sir Julius Chan over plans to use the
mercenaries to crush an uprising on Bougainville island.

Singirok argued that an assault on the copper-rich island
would cause unnecessary civilian deaths and ruin the chances of a
peaceful resolution of the nine-year conflict.

He also alleged that the deal was mired in corruption -- a
charge that Spicer rejected at the inquiry.

Spicer, 44, spent over 20 years in the British army, serving
in the Falklands and Gulf Wars and in Northern Ireland. He was
also a top UN peacekeeper in Bosnia before becoming chief
executive of mercenary firm Sandline International.

The British soldier had hoped to leave PNG with his men late
last month, but was held back and charged with illegally
possessing a Russian pistol and 40 rounds of ammunition. He has
been staying at the British High Commission before his trial on
April 8.

Spicer said the first contact with Sandline was made by then
defense minister Mathias Ijape in March 1996. Ijape stood down
last week with Chan and former finance minister Chris Haiveta.

Spicer said he heard from a friend at the British firm Defense
Security Systems that PNG was interested in buying army
helicopters and a first meeting was held in the Australian resort
of Cairns. Ijape, Singirok and Spicer all attended.

He said the PNG government offered to pay a fixed price of
US$30 million for helicopter gunships to use on Bougainville and
asked Sandline to work out a proposal. The proposal was presented
to Singirok when he visited London in May 1996 and was later
expanded to include a special mercenary force.

"The sensible military option was the development of a special
force to conduct a more effective operation, backing it with the
capacity to maneuver," Spicer told the inquiry.

Asked about allegations that money from the deal was skimmed
off by PNG leaders, Spicer replied with a stern "No".

The allegations of corruption formed a central part of
Singirok's original complaint against Chan, read over the radio
in a national address on March 17. In that address Singirok
referred to speculation that private security companies run by
Chan and Haiveta benefited from the deal.

PNG newspapers reported yesterday that Chan, who could
conceivably return to power after the inquiry in the run-up to
June elections, was suing Singirok for damages over the
corruption allegations.

Spicer said Sandline had been paid $18 million or half its
overall fee and still expected to receive the other half.