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.