SINGAPORE: A couple has been jailed for their roles for disguising a US$3.6 million (S$4.9 million) “secret commission” payment for non-existent services rendered for a project to build community colleges in Papua New Guinea (PNG).
Thomas Philip Doehrman, an American, was sentenced to 70 months’ jail, while his wife Lim Ai Wah, a Singaporean, was sentenced to 60 months’ jail, in what the prosecution called a “very significant case in Singapore’s fight against corruption and money-laundering”.
Together with Li Weiming, a Chinese national, they billed Chinese telecommunications equipment giant ZTE Corporation US$3.6 million through a shell company for non-existent services. The couple each pocketed at least US$950,000, while some of the monies also found their way to Li and former PNG prime minister Michael Thomas Somare — the latter purportedly received a 20 per cent cut.
The couple was convicted on July 22 of various money laundering and related offences. In its sentencing submissions, the prosecution stressed the need for a deterrent sentence, as “the presence of money laundering is a serious stain on the reputation of any financial hub”.
Singapore’s position as a stable and prominent financial centre in South-east Asia makes the Republic attractive as a destination for criminals to launder their ill-gotten gains, and money laundering cases involving shell companies are on the rise, they noted.
“The fact that some of the laundered monies (20 per cent) were traced to the bank account of the then-prime minister of PNG will raise public disquiet in Singapore and elsewhere. Singapore should not be seen as a haven for slush funds to pass through to the hands of errant or greedy politicians,” they said.
In 2010, ZTE was engaged to supply equipment and build infrastructure for the community colleges project, called the ITE project. The project was supported by a trust set up by the PNG government, called the Inclusive Education for National Development for Community Education Trust.
The representative acting for ZTE in this project was Li. Doehrman, Lim and Li hatched the scheme to net a US$3.6 million payment from ZTE. To do so, Doehrman and Lim bought a shell company called Questzone Offshore and signed a fictitious subcontract with ZTE for Questzone to provide services to the ITE project for a contract fee of US$3.6 million. An invoice was created but no services were provided, nor was there any intention to do so.
In their submissions, the prosecution pointed out that the monies were not easy to trace: They were moved from the trust in PNG to ZTE in Hong Kong and Shenzhen, and eventually into Questzone’s bank account in Singapore, all within a matter of days. “Considerable effort” was expanded to avoid detection, such as documents being created to justify the payments at each stage.
They noted the corrupt nature of their offences for example, Lim and Doehrman had admitted that they made corrupt payments to Mr Somare “to get business from PNG” and that part of the money would be used to pay PNG officials.
The couple also showed no remorse, and spun a “fairytale” in their defence — that the monies were to compensate Lim for giving up her container business to ZTE, and that the false contract for was “tax purposes”, said the prosecution. Li was also charged but has since absconded. A warrant of arrest has been issued against him.
In response to queries, the Attorney-General’s Chambers said: “Doehrman and Lim have appealed against their convictions and sentences.
“After the case against them is finally resolved, we will review the situation in respect of Somare.”
