HERALD WEEKLY ISSUE 428 : 08 October 2008

The case for the prosecution

The first count discussed related to the purchase of the Isuzu crane truck where George, Vaile and Koronui are alleged to defraud the Atiu Island Council. The transaction involved payment of money by Vaile to George in what is said to be ‘a corrupt payment’ in breach of the Secret Commissions Act.
The letter from Vaile was on Triad Enterprise letterhead and related to a 6.5 tonne crane which was capable of lifting 7 tonnes but considered not practical on the wharf. It would be sourced ‘ex Napier’ at the cost of $55,000 + costs and VAT. This letter was presented to the Atiu Island Council on 16 October 2000 as they were trying to decide on awarding the tender for a crane.
The Crown allege that the 3 defendants arranged for John George, relative to Norman George, to speak at the meeting to try and delay the meeting until Charles Koronui had been officially taken up his position as Island Secretary which was on 23 October 2000 when he signed a contract of employment with the Public Service Commissioner on behalf of Government.
On 25 October 2000, there was a letter to the Atiu Road project manager enclosing copes of 3 tenders with details of the required specifications. The crane was to be capable of lifting the barge out of the water in event of storms or cyclone and of a certain dimensions and weight.
The pros and cons of each tender were discussed and passed on the Ministry of Works project coordinator and to the office of Norman George who at the time was a Cabinet Minister (or even the DPM).
The Crown allege that no tender process was instituted to consider the best option and that George awarded the purchase and sale to CI National Line Ltd of which Vaile was a director
CINL ordered the Isuzu truck , which the Crown allege is worth $10,500 (with no GST because it was for export to Rarotonga) but invoiced the Atiu Island Council for $55,000 (cash on delivery) not including freight.
Chief prosecutor Ruffin said this was not only ‘gross overcharging’ on the part of CINL but the Isuzu did not meet the ‘promised specifications’ of Triad Enterprises in the letter of 12 October 2000. In that particular letter, Vaile had stated that the Hiab was ‘on the beach’ but was ‘never fitted to the truck to meet the requirements’ of the contract.
The prosecution alleges this meant that there was an ‘inferior’ product presented to the Atiu Island Council instead of what was required and what was promised.
On landing, MFEM was requested to make a disbursement into a cheque account to be paid into an account from which CINL Ltd was paid $55,000. With some complicated financial moves, the money was eventually to be paid by Vaile to George on a visit to New Zealand in late December 2000.
The (former) Island Secretary authorized the payment of the $55,000 without checking what crane was fitted to the truck, which was much inferior to what had been promised. According to the Crown, when the crane was offloaded at Atiu Wharf, it was not capable of lifting the goods out of the hold.
When inspected, the crane was found to have a much lower lifting capacity that requested in October 2000.
The chief prosecutor outlined how 3 cash withdrawals were made from a NZ bank account: $5,000 on 20 December 2000 signed by Vaile and cashed in the Remuera branch of the National Bank; $4,000 on 22 December 2000 signed by Vaile and cashed in the Newton branch of the National Bank; and $4674.55 also on 22 December 2000 signed by Vaile and cashed in the Remuera branch of the National Bank.
George visited NZ between 16 December and 24 December 2000 and the Crown allege that Vaile paid a ‘secret commission’ to George on that visit.
Ruffin then referred to the role of Junior Areai Enoka, who is a Crown witness against the 3 defendants, telling the court that none of the conspiracy charges involved Areai until March or April 2002 when he came into the employ of George who is alleged to have told him of all his dealings and how he received money for party political purposes from Vaile out of commissions received by the co-defendant in purchases of machinery for the Crown. Ruffin told the court that Areai-Enoka has been granted immunity for his role in any conspiracy and will be a witness for the prosecution.
More details in this weekend’s CI Times.

Herald Issue 429 15 October
- Report hints of worse to come
- Impartiality of Queen’s Representative Questioned
- Climate change - No longer just a theory
- Crimminal case of the century begins
-The case for the prosecution
- Workshop shows depth of creativity

Herald Issue 428 08 October
- Troubled Demos search for way forward
- Is there a Ministerial change on the horizon?
- A father asks for forgiveness
- Sponsors sought for Akateni Te Vaka Festival
- Closing the loopholes on foreign enterprises operating in the Cook Islands?
- One laptop per child concept accepted by PNG

Herald Issue 427 04 October
- Reviews of Health Ministry lack funding
- Mangaia hosts parai mangu workshop for ‘Are Marama Nui project
- Financial Secretary’s Blunder Could be Costly!
-Attempt to reunite Ariki
-Roads - maintain them or lose them
-New Zealand actor and whale lady feature in movie

Herald Issue 426 27 September
- Investigation needed into cost of changes at Health
- Expert back from Africa, Ireland next
- Health management decisions questionable!
- Libby comes to town
- Shortland Street star on Safari
- Launch of two memorials to Papa Tom Davis today

Herald Issue 425 20 September
- A technical bill with strong signals
- Complaint exposes lack of written policies
- nfrastructure development cries for a new concept
- Increasing the revenue from Tuna
- Ministry wants Williams to pay up
- Small turnout to roadshow

Herald Issue 424 13 September
- Over 40 PDL creditors meet to discuss options
- Audit Completes 2nd Investigation – Police Inquiry Must Follow!
- World Clean up Day
- A good local role model - Tearoa Tini
- Education, Police sign MOUs
- The customer is always right

Herald Issue 423 06 September
- Chamber calls for changes to the Public Service
- Spending imbalance in the Public Service
- Bleak Future for our Public Service!
- E-revolution at Health Ministry
- Openness to replace culture of secrecy
- Outer Island children to benefit from laptop project

Herald Issue 422 30 August
- Government to develop policy guidelines for land management
- Remembering the Good and the Bad Times!
- Bob’s last journey
- Locals pay tribute to Bob
- Boxing on, the Tahitians are coming
- WHO promotes Healthy Islands

Herald Issue 421 23 August
- Candidate selection the key to change
- Cook Islands response to Fiji’s withdrawal from Forum
- To Compete or Not to Compete!
- Bob Worthington - truly a worthy and meritorious Cook Islander
- Greg Urwin - An Islander at heart
- Anderson heads Chamber

Herald Issue 420 16 August
- Conference a wake up call for the CIP
- Some insight gained of CIP policy path
- Second chance for Executive
- Finance Minister signs China loan
- Proposed Commerce Bill needs life breathed into it
- More on the CIRA conference on Marae

Herald Issue 419 09 August
- CITC buys PDL
- CITC take over of PDL- a brief summary of the key details
- One way ticket out - Thanks to Government!
- PDL + CITC = A monopoly?
- Constitution Day celebrations at the National Auditorium
- International Night at Te Maeva Nui

Herald Issue 418 02 August
- Tepaki up to date says NZ Bank
- Legal framework for commercial sector
- Speed, Dogs and Te Maeva Nui – Recipes for Disasters!
- Youngsters boxing on
- Parkway Diner opens at Punanga Nui market
- A Cook Islander calling the shots at a Melbourne Rugby Club

Herald Issue 417 26 July
- Other building site better say Engineers in report
- Repeat offenders on the loose again!
- Fraudsters won’t be the last
- Strength seen in Pacific Common Market
- Community to discuss water project
- ZOZA – Seeing is believing

Herald Issue 416 19 July
- Wednesday briefing from the Prime Minster
- Cook Islands community in Melbourne hosts Puaikura tour group
- Takitumu Festival 2008 – An Extravaganza Not to Be Missed!
- Atiu being victimized says Glassie
- Digicel seeks $69 Million loan for expansion in South Pacific
- Aquarius problems fundamental says Tepaki

Herald Issue 415 12 July
- Telecom Farewells CEO
- What future for Cook Islands people?
- Health Conference 2008 underway
- The threat of lifestyle diseases
- Setting professional standards in Health
- Author to visit native Cook Islands

Herald Issue 414 05 July
- Resurgence of investor confidence in Tepaki Group
- Make the next QR an Ariki says church pastor
- Visitors ask for their passports back
- Te Aponga Uira to host Annual PPA conference 2008
- Hodges & Munroe move on
- More lime trees for Mitiaro

Herald Issue 413 28 June
- Sunday flights-the greediness for more
- NZ IRD probe orchestrated by locals-Tepaki
- No Sunday flights-Tepaki
- Scary time no trouble to Marsters
- The business of peace
- The Push Factor – Who’s next!

Herald Issue 412 21 June
- House of Ariki hear the views of Government
- Desperately seeking Obama
- Ui Ariki – Has the Bubble Finally Burst!
- Courting disaster
- Tsunami preparing for the big one
- Marsters stands in for Ioane at Bali Meeting

Herald Issue 411 14 June
- Cabinet ignores petition, approves Sunday flights trial
-Ui Ariki vs House of Ariki – The Challenge Ahead!
- Ui Ariki seeking recognition of their mana with a Proclamation
- Lagoon Day and closing ceremony for Environment Week
-Air New Zealand Fare and Capacity Changes
-50th Wedding Anniversary celebration

Herald Issue 410 07 June
- PM injects Rome meeting with Pacific view
- Another week of fluffy ducks!
- Cook Islands to represent the Pacific on the CBD Bureau
- What is Takitumu Lagoon Day all about?
-Sunday flights to Aitutaki
-Women in Sport presentation to Rotary

HEADLINES: ISSUE 409 31 May 2008
- Prime Minister to attend High-Level Conference on World Food Security
- Budget 2008 – Nothing more but more of less!
- Turning up the heat on Peters
- Takitumu Lagoon Day part of National Environment Week events
-Women host High Court Justice
-The mystical wave of Teahupoo

HEADLINES: ISSUE 408 24 May 2008
- As the DPM tightens the purse strings and reigns in spending, others look for an Economic Summit
-Wake Up PSC: It’s time for change!
- Congratulations, Vaine Maui, Woman of the month of May
- Making no excuses, Tepaki apologises to his workers
- Starting and staying in business
The BTIB shows how

-Aquarius Pacific applies for relief from court judgment

HEADLINES: ISSUE 407 17 May 2008
- Casual attitudes poses potential risks!
-Moves aimed at improving management-Tepaki
- Women Agriculture Ministers launch Network at the UN
- Lady Davis seeks $300,000 from CI Herald
- When the sleeping giant awakes
-Cheaper to mine nodules now

HEADLINES: ISSUE 402 12 April 2008
- Cabinet approvals granted
-“Our Economy – Concern or a Con”
Mr Financial Secretary – What Say Ye!

- Breast cancer campaign raises $23,714
- Denise Rairi found not guilty
- Routine steps to achieving 100% Nio Manea
-Specialist speaks on breast cancer

HEADLINES: ISSUE 401 05 April 2008
- Worrying signs in policy document
- Prime Minister’s Office on Witch Hunt!
- Appointment of the Mauke Environment Authority
- Tanks nearly ready at fish farm
- Defence lawyer wants charges against Denise Rairi struck out
-Tahitian Association seeks members, accommodation
-Suppression order lifted by CJ

HEADLINES: ISSUE 400 29 March 2008
- Silence over the economy - quiet before the storm?
- Kete heads to Mauke, Tom misses out
- Helmets – have we been conned!
- Occupation a factor in partition orders
- National Commission to be set up for UNESCO
- Alternative sources for fresh water

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