Latest news with #WapuSonk
Sydney Morning Herald
15 hours ago
- Business
- Sydney Morning Herald
‘Forged' and ‘fake': PNG sport, business supremo hits out at corruption concerns
The oil and gas boss who led Papua New Guinea's bid for a National Rugby League franchise has blasted corruption concerns about his business dealings as 'baseless claims' designed to discredit the country's historic admission to the Australian competition. Wapu Sonk on Friday stepped down as a director from the incoming team's board at the request of PNG Prime Minister James Marape, after this masthead uncovered suspect dealings between the Sonk-led Kumul Petroleum Holdings and a Chinese government-controlled entity over the upgrade of a PNG port. Marape said at the weekend that he ordered an investigation after a letter emerged from March this year from Australian-born Kumul Petroleum project manager Jason Pollock to the Chinese company directing it to use companies owned by Pollock and Sonk. Sonk is managing director of Kumul Petroleum, PNG's state-owned energy business and the country's largest company. He declined to answer questions put to him last week by this masthead, but in a statement issued on Monday night, he described the letter as 'fabricated'. 'These claims are based on false information and the matter is being investigated internally within KPHL and will be referred to the police for investigation,' Sonk said. 'I will ensure all these baseless claims are properly addressed, and that those who falsified documents are properly dealt with through legal channels.' Sonk said he had stood down from the board of the Albanese government-backed PNG NRL team 'to ensure there is no hindrance in progressing our new NRL franchise team forward' and that he would pursue defamation action in Australia to clear his name.
The Age
15 hours ago
- Business
- The Age
‘Forged' and ‘fake': PNG sport, business supremo hits out at corruption concerns
The oil and gas boss who led Papua New Guinea's bid for a National Rugby League franchise has blasted corruption concerns about his business dealings as 'baseless claims' designed to discredit the country's historic admission to the Australian competition. Wapu Sonk on Friday stepped down as a director from the incoming team's board at the request of PNG Prime Minister James Marape, after this masthead uncovered suspect dealings between the Sonk-led Kumul Petroleum Holdings and a Chinese government-controlled entity over the upgrade of a PNG port. Marape said at the weekend that he ordered an investigation after a letter emerged from March this year from Australian-born Kumul Petroleum project manager Jason Pollock to the Chinese company directing it to use companies owned by Pollock and Sonk. Sonk is managing director of Kumul Petroleum, PNG's state-owned energy business and the country's largest company. He declined to answer questions put to him last week by this masthead, but in a statement issued on Monday night, he described the letter as 'fabricated'. 'These claims are based on false information and the matter is being investigated internally within KPHL and will be referred to the police for investigation,' Sonk said. 'I will ensure all these baseless claims are properly addressed, and that those who falsified documents are properly dealt with through legal channels.' Sonk said he had stood down from the board of the Albanese government-backed PNG NRL team 'to ensure there is no hindrance in progressing our new NRL franchise team forward' and that he would pursue defamation action in Australia to clear his name.
RNZ News
2 days ago
- Business
- RNZ News
Wapu Sonk stands down from PNG NRL franchise board amid corruption allegations
By Papua New Guinea correspondent Marian Faa , ABC . Wapu Sonk has stood down over allegations of corrupt business dealings linked to a Chinese state-run company. Photo: ABC News / Craig Hansen In short: What's next? A powerful businessman has stood down from the board of Papua New Guinea's new NRL franchise amid corruption concerns relating to business dealings with a Chinese state-owned company. The newly established board has been entrusted with overseeing more than AU$200 million in Australian government funding to set up PNG's new NRL team, which plans to join the rugby league competition in 2028. PNG businessman Wapu Sonk led a successful campaign as chair of the PNG NRL bid in 2024, and was appointed as a director of the franchise board last month. On Friday, PNG Prime Minister James Marape said Sonk had agreed to step aside following corruption concerns reported in the Sydney Morning Herald . The concerns surround business dealings related to Sonk's role as managing director of PNG state-owned oil company Kumul Petroleum Holdings Limited (KPHL), and not the NRL franchise. An official letter seen by the ABC shows KPHL insisted that Chinese state-owned company China Petroleum and Pipeline Engineering Corporation award a subcontract to an Australian company owned by Sonk. China Petroleum and Pipeline Engineering Corporation was awarded a contract to upgrade fuel storage facilities at a major wharf outside PNG's capital. The letter suggests that failure to award the subcontracts could "compromise the project's overall success" and collaborative efforts between the Chinese Company and KPHL. Sonk did not respond to requests for comment and has not yet publicly commented on the allegations. In a statement, Marape said the allegations "raise concerns that cannot be ignored". He said the allegations against Sonk, who is not in PNG presently, were not a presumption of guilt. "Mr Sonk is entitled to due process and the opportunity to clear his name," he said. "Stepping down allows him the space to do so without casting a shadow over the franchise process or compromising the confidence of our partners. "This moment demands clarity, accountability, and the upholding of public confidence. Our national sporting future - and our international reputation - depend on it." To help the PNG franchise join the NRL, the Australian government has committed $600m over 10 years. The money will also fund community outreach programs supported by the new club. -ABC
The Age
4 days ago
- Business
- The Age
Man who won $600m from Albanese government for PNG rugby league embroiled in corruption scandal
The chairman of the successful bid for Papua New Guinea's new rugby league franchise faces corruption concerns involving a Chinese company – after the Albanese government poured $600 million of taxpayers money into the scheme to ward off Beijing's influence in the Pacific. The claims involve a company owned by powerful PNG businessman Wapu Sonk, who led the Pacific Island nation's bid to join the National Rugby League and in June was appointed a director of the country's new franchise. But evidence unearthed by this masthead raises serious questions about whether Sonk sought to benefit personally from his power as the chief of PNG's national oil company. The evidence, which relates to his business dealings not the NRL bid, includes confidential documents and corporate records and links Sonk's company to suspect dealings with a massive Chinese government firm and a plot to funnel contracts to a company Sonk owns in Australia. Sonk, who has refused to answer questions about the issue, is also facing scrutiny over his use of a multimillion-dollar Brisbane property owned by an Australian businessman whose firm has been awarded lucrative contracts by the top oil company which Sonk heads. Sonk has been heralded as a central player in the NRL expansion deal announced in December by Prime Minister Anthony Albanese alongside his PNG counterpart, James Marape, that will see the team join the competition in 2028. Labor has committed $600 million in taxpayer funding to finance the deal, with the funds to be spent mostly in PNG with the guidance of Sonk and his fellow directors and oversight from the Australian Rugby League Commission. The Albanese government has backed the deal as a means of countering China's strategic, security and economic influence in PNG – a fact which raises further questions about Sonk's company's dealings with a Beijing-backed firm. Sonk's power and influence – and the reason he became a key player in the NRL deal – flow from his position as the head of PNG's biggest company, the state-owned national oil company, Kumul Petroleum Holdings Limited. If Sonk sought to use Kumul Petroleum to cut deals with a Chinese government entity in order to personally profit, it would involve precisely the type of dealmaking the Albanese government was seeking to counter when it inked the deal it negotiated with Sonk to expand the NRL into Port Moresby. The multibillion-dollar company is responsible for boosting PNG's economic and social welfare via its mandated stake in key energy projects. Sonk has helmed Kumul Petroleum as managing director for 10 years, giving him huge political and business sway as well as influence over overseas companies chasing contracts in PNG. Kumul Petroleum's long-standing funding of rugby league in PNG has made Sonk into a kingmaker in the local sport landscape. The corruption concerns involve Kumul Petroleum's $30 million project to build new oil tank facilities at a key PNG international port, the Motukea Main Wharf. In 2024, the Sonk-led Kumul Petroleum awarded the contract to a Chinese Communist Party-controlled firm involved in mega projects around the world, the China Petroleum and Pipeline Engineering Corporation. In December, Sonk told the PNG press that Kumul Petroleum was spending 'significant' funds on the project to 'put in place critical infrastructure ... which is so important for our economy and development as a country'. But a leaked Kumul Petroleum letter suggests Sonk may have also been seeking to benefit himself. The letter, obtained by this masthead, details a demand from Kumul Petroleum – on its official letterhead – to the China Petroleum and Pipeline Engineering Corporation. The March 12 letter tells the Chinese-government firm that Kumul expected it to hire two 'designated' Australian companies in order to carry out the port project and that this is in keeping with a 'prior agreement' extracted by Kumul Petroleum during its negotiations with the Beijing company. 'We would like to formally confirm that, as previously discussed and agreed upon, the renovation and upgrade work at Motukea Main Wharf of PNG Motukea Fuel Facility Project shall be carried out by the designated companies,' the Kumul Petroleum letter states. The request from Kumul Petroleum to the Chinese government contractor contains a veiled commercial threat that if it did not hire the 'designated' Australian companies, it might jeopardise its relationship with PNG's national oil company. 'We kindly request your cooperation in ensuring that the execution of these works aligns with our prior agreements. Any deviation from the agreed-upon plan could potentially impact the project's overall success and our collaborative efforts,' the letter states. Missing from the letter is a key detail: one of the two 'designated' companies put forward in Kumul Petroleum's letter of demand, PNG Developments Pty Ltd, is privately owned in Australia by Wapu Sonk. 'Specifically, the Engineering, Procurement, and Construction (EPC) work shall be executed by PNG Developments PTY LTD,' the Kumul Petroleum letter states without disclosing that the Australian firm's sole shareholder is Sonk. The second designated firm is FSB Consulting, which this masthead has confirmed is owned by one of Sonk's senior employees at Kumul Petroleum, Australian-born Jason Pollock. 'The Project Management Consultancy (PMC) work shall be handled by FSB Consulting Pty Ltd,' states the March 2025 letter, which is signed by Pollock is his capacity as 'Projects Director: Kumul Petroleum Holdings Limited'. As is the case with Sonk's private firm, there is no mention in the Kumul Petroleum letter that Pollock owns FSB. Called this week, Pollock denied knowing his boss, Sonk, was the owner of PNG Developments Pty Ltd. 'I would find it hard to believe that Sonk owns that company,' Pollock said. 'That would surprise me … I'm quite taken back (sic) by that suggestion.' When later sent a shareholding document by this masthead that proved Sonk's ownership of the firm, Pollock responded with an emoji of an angry red face swearing. When Pollock was pressed as to why he wrote to the Chinese in March instructing them to use PNG Developments Pty Ltd if he did not know who owned it, he said: 'I can't remember.' He also said he could 'not remember' who directed him to nominate PNG Developments Pty Ltd as one of the two firms the Chinese government company was expected to use, but suggested it may have been a senior engineer working for the Chinese Communist Party-controlled corporation. Pressed about the seeming promotion of his privately owned firm, Pollock said it 'looks stinky' and was a 'conflict of interest'. Pollock claimed he had 'retracted' the Kumul Petroleum letter of demand after: 'I saw the error of my ways.' Pollock also claimed he had personally discussed the letter with Sonk and that Sonk had warned him about conflicts of interest, albeit while never revealing his ownership of PNG Developments Pty Ltd. Pollock insisted he was not a friend of Sonk, who Pollock called 'the big fella'. But he said he had travelled to a Chinese energy conference in Beijing with Sonk in May as part of a delegation including senior PNG politicians. Pollock had also travelled to Shanghai with Sonk on a separate trip, he said. Pollock said during an interview that he was 'happy' for any allegations of wrongdoing linked to the port deal 'to be investigated'. Sonk was sent detailed questions on Tuesday, including whether he had any knowledge of, or involvement in, sending the letter, but declined to answer them. 'These are serious questions and I prefer a lawyer to speak to you on my behalf,' Sonk said in a message on Tuesday. He did not respond further, although his lawyers on Wednesday wrote to this masthead saying: 'Our client denies any and all allegations of improper or unlawful conduct that you assert.' There is no suggestion by this masthead that Sonk directed Pollock to send the letter to the Chinese firm, only that the circumstances of the letter warrant further scrutiny because of Sonk's ownership of PNG Developments. There is no evidence that the two firms privately owned by Sonk or Pollock ever actually received any funds or contracts from the Chinese company. An Australian government spokesman said it had zero tolerance for corruption and any allegations of corrupt behaviour should be referred to appropriate authorities. The spokesman, in a statement, said the agreements between the government, the ARL Commission and PNG's NRL franchise had 'strong anti-fraud and corruption protections'. ARL Commission chairman Peter V'landys said he had not previously heard any adverse allegations about Sonk and that the league would be guided by 'any court case which tests these allegations'. Sonk also declined to answer questions about his use of a multimillion-dollar Brisbane home owned by an Australian businessman whose company has won contracts from Kumul Petroleum. Corporate records reveal that Hamid Ronagh is the part owner – via a company – of the Indooroopilly property used by Sonk and one of his close associates, a PNG woman, to register companies and also to live in. Ronagh's Australian firm, Neobuild, has won contracts in PNG awarded by Kumul Petroleum. Pollock told this masthead that Neobuild had won a large contract on the Motukea wharf project. Ronagh confirmed to this masthead that Sonk was renting his Brisbane property. But Ronagh did not respond to a request to provide evidence that Sonk had paid to use the property and did not respond to questions about whether the arrangement was appropriate given Neobuild's commercial dealings with Kumul Petroleum. Sonk also did not respond to questions about why he was using the Brisbane property and the extent, if any, of his private dealings with Ronagh. This masthead is not suggesting that Ronagh has provided inducements to Sonk, or that Sonk has sought them. Rather, the apparent private commercial relationship between the pair raises questions about conflicts of interest that remain unanswered given the pair's failure to answer questions. While Sonk's involvement in suspect dealings in his capacity as national oil company chief do not extend to his role leading PNG's rugby league bid, they do raise questions about his ongoing role as director of PNG's new NRL franchise. Sonk was a VIP guest of the NRL in Australia when the new team was announced and gave interviews to Australian reporters claiming the new franchise would sign up one million members, or more than the rest of the competition teams combined. One league reporter wrote that the PNG NRL deal had transformed Sonk into 'one of the game's most powerful figures'. Sonk is one of seven directors variously nominated by the ARL commission and PNG government to the board that will oversee the addition of a new team to the NRL competition in 2028. V'landys said Sonk was among the selections of the PNG government, while the commission's nominations included chairman and Canterbury Bulldogs powerbroker Ray Dib. He said the commission conducted background checks on nominated directors. The NRL agreed to the historic expansion into PNG at the behest of Albanese, who was eager to deliver it as a boost to Marape to shore up security ties with Australia's closest neighbour and ward off China's efforts to further its influence in the Pacific. Of the $600 million committed by the Albanese government over 10 years, $290 million will go towards the establishment and operation of the PNG team, with $250 million channelled into the development of rugby league in the Pacific and $60 million to be divided between existing NRL clubs as a licence fee. As an added layer of oversight, the commission will be responsible overseeing the distribution of the $600 million of taxpayer funds. However, there have been concerns that the PNG deal would inevitably be exposed to governance risks given that corruption is endemic in the Pacific. 'It's in this type of corrupted environment that you're going to be exposed to these kind of situations,' one observer said. A second source with deep connections into the federal government and the NRL said the NRL-PNG deal was always a bad idea given the potential for it to fuel corruption. A third source, a senior official in PNG, said the Australian government funds were 'better spent on health and education'. Sonk's lawyers said their client's role as a director of the new PNG-NRL franchise was appropriate. 'Our client is one member of a board of directors of the proposed franchisee. That board comprises a group of highly experienced and well-regarded individuals (including retired professional NRL players) that collectively bring significant expertise to their oversight responsibilities, and decisions are made through proper and robust governance processes,' they said. The Australian government's bankrolling of rugby league in the Pacific has alarmed rugby union chiefs in Fiji, Tonga and Samoa, who have formed new links with China amid concerns that their national game could be cannibalised by a foreign taxpayer-backed rival code.
Sydney Morning Herald
4 days ago
- Business
- Sydney Morning Herald
Man who won $600m from Albanese government for PNG rugby league embroiled in corruption scandal
The chairman of the successful bid for Papua New Guinea's new rugby league franchise faces corruption concerns involving a Chinese company – after the Albanese government poured $600 million of taxpayers money into the scheme to ward off Beijing's influence in the Pacific. The claims involve a company owned by powerful PNG businessman Wapu Sonk, who led the Pacific Island nation's bid to join the National Rugby League and in June was appointed a director of the country's new franchise. But evidence unearthed by this masthead raises serious questions about whether Sonk sought to benefit personally from his power as the chief of PNG's national oil company. The evidence, which relates to his business dealings not the NRL bid, includes confidential documents and corporate records and links Sonk's company to suspect dealings with a massive Chinese government firm and a plot to funnel contracts to a company Sonk owns in Australia. Sonk, who has refused to answer questions about the issue, is also facing scrutiny over his use of a multimillion-dollar Brisbane property owned by an Australian businessman whose firm has been awarded lucrative contracts by the top oil company which Sonk heads. Sonk has been heralded as a central player in the NRL expansion deal announced in December by Prime Minister Anthony Albanese alongside his PNG counterpart, James Marape, that will see the team join the competition in 2028. Labor has committed $600 million in taxpayer funding to finance the deal, with the funds to be spent mostly in PNG with the guidance of Sonk and his fellow directors and oversight from the Australian Rugby League Commission. The Albanese government has backed the deal as a means of countering China's strategic, security and economic influence in PNG – a fact which raises further questions about Sonk's company's dealings with a Beijing-backed firm. Sonk's power and influence – and the reason he became a key player in the NRL deal – flow from his position as the head of PNG's biggest company, the state-owned national oil company, Kumul Petroleum Holdings Limited. If Sonk sought to use Kumul Petroleum to cut deals with a Chinese government entity in order to personally profit, it would involve precisely the type of dealmaking the Albanese government was seeking to counter when it inked the deal it negotiated with Sonk to expand the NRL into Port Moresby. The multibillion-dollar company is responsible for boosting PNG's economic and social welfare via its mandated stake in key energy projects. Sonk has helmed Kumul Petroleum as managing director for 10 years, giving him huge political and business sway as well as influence over overseas companies chasing contracts in PNG. Kumul Petroleum's long-standing funding of rugby league in PNG has made Sonk into a kingmaker in the local sport landscape. The corruption concerns involve Kumul Petroleum's $30 million project to build new oil tank facilities at a key PNG international port, the Motukea Main Wharf. In 2024, the Sonk-led Kumul Petroleum awarded the contract to a Chinese Communist Party-controlled firm involved in mega projects around the world, the China Petroleum and Pipeline Engineering Corporation. In December, Sonk told the PNG press that Kumul Petroleum was spending 'significant' funds on the project to 'put in place critical infrastructure ... which is so important for our economy and development as a country'. But a leaked Kumul Petroleum letter suggests Sonk may have also been seeking to benefit himself. The letter, obtained by this masthead, details a demand from Kumul Petroleum – on its official letterhead – to the China Petroleum and Pipeline Engineering Corporation. The March 12 letter tells the Chinese-government firm that Kumul expected it to hire two 'designated' Australian companies in order to carry out the port project and that this is in keeping with a 'prior agreement' extracted by Kumul Petroleum during its negotiations with the Beijing company. 'We would like to formally confirm that, as previously discussed and agreed upon, the renovation and upgrade work at Motukea Main Wharf of PNG Motukea Fuel Facility Project shall be carried out by the designated companies,' the Kumul Petroleum letter states. The request from Kumul Petroleum to the Chinese government contractor contains a veiled commercial threat that if it did not hire the 'designated' Australian companies, it might jeopardise its relationship with PNG's national oil company. 'We kindly request your cooperation in ensuring that the execution of these works aligns with our prior agreements. Any deviation from the agreed-upon plan could potentially impact the project's overall success and our collaborative efforts,' the letter states. Missing from the letter is a key detail: one of the two 'designated' companies put forward in Kumul Petroleum's letter of demand, PNG Developments Pty Ltd, is privately owned in Australia by Wapu Sonk. 'Specifically, the Engineering, Procurement, and Construction (EPC) work shall be executed by PNG Developments PTY LTD,' the Kumul Petroleum letter states without disclosing that the Australian firm's sole shareholder is Sonk. The second designated firm is FSB Consulting, which this masthead has confirmed is owned by one of Sonk's senior employees at Kumul Petroleum, Australian-born Jason Pollock. 'The Project Management Consultancy (PMC) work shall be handled by FSB Consulting Pty Ltd,' states the March 2025 letter, which is signed by Pollock is his capacity as 'Projects Director: Kumul Petroleum Holdings Limited'. As is the case with Sonk's private firm, there is no mention in the Kumul Petroleum letter that Pollock owns FSB. Called this week, Pollock denied knowing his boss, Sonk, was the owner of PNG Developments Pty Ltd. 'I would find it hard to believe that Sonk owns that company,' Pollock said. 'That would surprise me … I'm quite taken back (sic) by that suggestion.' When later sent a shareholding document by this masthead that proved Sonk's ownership of the firm, Pollock responded with an emoji of an angry red face swearing. When Pollock was pressed as to why he wrote to the Chinese in March instructing them to use PNG Developments Pty Ltd if he did not know who owned it, he said: 'I can't remember.' He also said he could 'not remember' who directed him to nominate PNG Developments Pty Ltd as one of the two firms the Chinese government company was expected to use, but suggested it may have been a senior engineer working for the Chinese Communist Party-controlled corporation. Pressed about the seeming promotion of his privately owned firm, Pollock said it 'looks stinky' and was a 'conflict of interest'. Pollock claimed he had 'retracted' the Kumul Petroleum letter of demand after: 'I saw the error of my ways.' Pollock also claimed he had personally discussed the letter with Sonk and that Sonk had warned him about conflicts of interest, albeit while never revealing his ownership of PNG Developments Pty Ltd. Pollock insisted he was not a friend of Sonk, who Pollock called 'the big fella'. But he said he had travelled to a Chinese energy conference in Beijing with Sonk in May as part of a delegation including senior PNG politicians. Pollock had also travelled to Shanghai with Sonk on a separate trip, he said. Pollock said during an interview that he was 'happy' for any allegations of wrongdoing linked to the port deal 'to be investigated'. Sonk was sent detailed questions on Tuesday, including whether he had any knowledge of, or involvement in, sending the letter, but declined to answer them. 'These are serious questions and I prefer a lawyer to speak to you on my behalf,' Sonk said in a message on Tuesday. He did not respond further, although his lawyers on Wednesday wrote to this masthead saying: 'Our client denies any and all allegations of improper or unlawful conduct that you assert.' There is no suggestion by this masthead that Sonk directed Pollock to send the letter to the Chinese firm, only that the circumstances of the letter warrant further scrutiny because of Sonk's ownership of PNG Developments. There is no evidence that the two firms privately owned by Sonk or Pollock ever actually received any funds or contracts from the Chinese company. An Australian government spokesman said it had zero tolerance for corruption and any allegations of corrupt behaviour should be referred to appropriate authorities. The spokesman, in a statement, said the agreements between the government, the ARL Commission and PNG's NRL franchise had 'strong anti-fraud and corruption protections'. ARL Commission chairman Peter V'landys said he had not previously heard any adverse allegations about Sonk and that the league would be guided by 'any court case which tests these allegations'. Sonk also declined to answer questions about his use of a multimillion-dollar Brisbane home owned by an Australian businessman whose company has won contracts from Kumul Petroleum. Corporate records reveal that Hamid Ronagh is the part owner – via a company – of the Indooroopilly property used by Sonk and one of his close associates, a PNG woman, to register companies and also to live in. Ronagh's Australian firm, Neobuild, has won contracts in PNG awarded by Kumul Petroleum. Pollock told this masthead that Neobuild had won a large contract on the Motukea wharf project. Ronagh confirmed to this masthead that Sonk was renting his Brisbane property. But Ronagh did not respond to a request to provide evidence that Sonk had paid to use the property and did not respond to questions about whether the arrangement was appropriate given Neobuild's commercial dealings with Kumul Petroleum. Sonk also did not respond to questions about why he was using the Brisbane property and the extent, if any, of his private dealings with Ronagh. This masthead is not suggesting that Ronagh has provided inducements to Sonk, or that Sonk has sought them. Rather, the apparent private commercial relationship between the pair raises questions about conflicts of interest that remain unanswered given the pair's failure to answer questions. While Sonk's involvement in suspect dealings in his capacity as national oil company chief do not extend to his role leading PNG's rugby league bid, they do raise questions about his ongoing role as director of PNG's new NRL franchise. Sonk was a VIP guest of the NRL in Australia when the new team was announced and gave interviews to Australian reporters claiming the new franchise would sign up one million members, or more than the rest of the competition teams combined. One league reporter wrote that the PNG NRL deal had transformed Sonk into 'one of the game's most powerful figures'. Sonk is one of seven directors variously nominated by the ARL commission and PNG government to the board that will oversee the addition of a new team to the NRL competition in 2028. V'landys said Sonk was among the selections of the PNG government, while the commission's nominations included chairman and Canterbury Bulldogs powerbroker Ray Dib. He said the commission conducted background checks on nominated directors. The NRL agreed to the historic expansion into PNG at the behest of Albanese, who was eager to deliver it as a boost to Marape to shore up security ties with Australia's closest neighbour and ward off China's efforts to further its influence in the Pacific. Of the $600 million committed by the Albanese government over 10 years, $290 million will go towards the establishment and operation of the PNG team, with $250 million channelled into the development of rugby league in the Pacific and $60 million to be divided between existing NRL clubs as a licence fee. As an added layer of oversight, the commission will be responsible overseeing the distribution of the $600 million of taxpayer funds. However, there have been concerns that the PNG deal would inevitably be exposed to governance risks given that corruption is endemic in the Pacific. 'It's in this type of corrupted environment that you're going to be exposed to these kind of situations,' one observer said. A second source with deep connections into the federal government and the NRL said the NRL-PNG deal was always a bad idea given the potential for it to fuel corruption. A third source, a senior official in PNG, said the Australian government funds were 'better spent on health and education'. Sonk's lawyers said their client's role as a director of the new PNG-NRL franchise was appropriate. 'Our client is one member of a board of directors of the proposed franchisee. That board comprises a group of highly experienced and well-regarded individuals (including retired professional NRL players) that collectively bring significant expertise to their oversight responsibilities, and decisions are made through proper and robust governance processes,' they said. The Australian government's bankrolling of rugby league in the Pacific has alarmed rugby union chiefs in Fiji, Tonga and Samoa, who have formed new links with China amid concerns that their national game could be cannibalised by a foreign taxpayer-backed rival code.
