The State v Bygonnes Tuse Nae (1996) N1474

• Jurisdiction: Papua New Guinea
• Citation: (1996) N1474
• Date: 18 September 1996
• Court: National Court
• Year: 1996

Full Title: The State v Bygonnes Tuse Nae (1996) N1474

National Court: Sawong J

Judgment Delivered: 18 September 1996

1 Criminal law—Sentence—Plea of guilty—19 counts of misappropriation—misappropriation—total amount misappropriated K103,587.71—Restitution Orders—Considered not appropriate sentence—Custodial sentence appropriate

2 Wellington Belawa v The State [1988–89] PNGLR 496 referred to

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Sawong J: You have pleaded guilty to 19 counts that between 19 January 1993 and 02 August 1994 you dishonestly applied to your own use the total sum K103,587.71 the property of various individuals and the Eastern Highlands Rural Housing Scheme Inc. The charges were laid pursuant s383A(1)(a), (2)(d), of the Criminal Code (Ch262).

These are serious offences and you could be jailed for up to 10 years imprisonment.

The facts of the case are set out in the various witnesses statements, your records of interviews with the police and other documentary evidence which are all contained in the court depositions. The witnesses statements and the other evidence reveal the following.

In early 1993 you started a scheme called the Eastern Highlands Rural Housing Scheme (hearing after referred to as "EHRHS"). On or about the 3rd September 1993 you incorporated that organisation which became known as the Eastern Highlands Rural Housing Scheme Incorporated (hearin after called "EHRHS INC"). You were the Managing Director of that organisation. The evidence shows that you even proceeded to and publicised the scheme as providing low cost permanent housing for Papua New Guineans. You invited members of the public to become members of the group, and subsequently you set up an office and employed staff. The basis of the scheme was that interested members of the public who were interested in participating the scheme, should pay a membership fee ranging from K50.00 to K200.00 to become members or member of that organisation. Any of those members requiring a house to be built were then required to pay a further sum of between K1500.00 as a deposit towards the full cost of a house.. Any non member who wishes to have his or her house built was to pay the sum of K3,500.00 as deposit for the house. The deposits were for the basic house to be built. Included in the scheme was that there were several plans for several different type of houses whose costs ranged from K37,00.00 to K45,000.00. In some cases furniture packages were available and were to be included. Once a member or a non member paid the required deposit, you undertook to have a house of their own choice built at an area chosen by that particular person. The repayment rate was K10.00 per month for members and K20.00 per months for non members. The scheme you had put into place meant that without interest it will take 21 years to pay off a cost of the basic house but with interest at 10% it would never have been possible for anyone to repay the cost of the house at the rate of K10.00 or K20.00 per month.

As a consequence of this scheme being introduced and put into place by you, a large number of people from all walks of life in the Eastern Highlands Province participated in the scheme. Between 19 of January 1993 and the 2 August 1994 these people deposited certain amounts into the scheme to become members of ENRHS INC. Furthermore, the evidence shows that once they become "members", they were then enticed to pay further moneys as deposits towards the cost of a house.

The evidence shows that subsequently you built a house at Seigu with a view to encourage further people to take part in the scheme. Apart from that house no other houses were built for those people who have deposited their monies. During 1994 some of the people who had deposited with you became suspicious as no houses had been built. When they made enquires with your office staff your office informed them that either you were not available or that there were no funds to repay their membership fees or their deposits. Those facts give rise to counts 1 to 6 inclusive, 8 & 9 & 11 to 19 inclusive.

During the same period, and using same scheme you convinced one Steven Upayaka to withdraw K10,000.00 from his savings account (pass book) and deposited in and interest bearing deposits (IBD) with Credit Corporation in Port Moresby. You told Steven Upayaka that you would help him buy a dump truck if deposited those monies and you would give him a...