PNG NRL director stands down over corruption concerns

The man who led Papua New Guinea’s campaign for a new NRL team has stood down from its board at the request of the country’s prime minister as a corruption scandal engulfs the Albanese government’s $600 million venture to counter China in the Pacific.

Wapu Sonk, who chaired the bid to join the Australian competition in 2028 and was named last month as one of the incoming franchise’s seven directors, stepped aside on Friday after this masthead revealed concerns he may have sought to financially benefit from his position as managing director of PNG’s multibillion-dollar national oil company.

PNG Prime Minister James Marape (left) and Wapu Sonk.Credit: Alex Ellinghausen/Facebook

“I have spoken to Mr Sonk and, while he is currently overseas, I have requested that he step down from his role as a director on the PNG NRL franchise board effective immediately. He has agreed to do so,” PNG Prime Minister James Marape said.

“This reflects PNG’s commitment to the highest standards of integrity, probity and public trust.”

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, including a bid to funnel lucrative contracts to an Australian company owned by Sonk.

The businessman is also facing questions about his use of a Brisbane home whose owner has won contracts with Kumul Petroleum.

Marape said they were serious allegations which “raise concerns that cannot be ignored”.

“This is not a presumption of guilt. Mr Sonk is entitled to due process and the opportunity to clear his name. Stepping down allows him the space to do so without casting a shadow over the franchise process or compromising the confidence of our partners,” he said.

“I want to reassure the people of Papua New Guinea, the Australian government, and the ARLC [Australian Rugby League Commission] that my government is committed to full transparency and co-operation with any relevant investigations. The integrity of this national franchise is paramount. We will not allow it to be undermined by external controversy.

“We thank Mr Sonk for his contributions to the early phase of the PNG NRL bid. However, this moment demands clarity, accountability, and the upholding of public confidence. Our national sporting future – and our international reputation – depend on it.”

Marape said the claims “touch on the governance and integrity of one of our most strategic state-owned enterprises” and as trustee of Kumul Petroleum he would ensure due process was followed.

“At this point, I have not received any official complaint locally, but I will be requesting all relevant information to allow us to assess the matter responsibly and objectively,” he said.

“Let me make it clear — no one is above accountability. If impropriety is established, then appropriate action will follow. Kumul Petroleum must operate at the highest standards of transparency and ethical conduct, given its critical role in managing the state’s petroleum interests.”

A formal letter would be issued to Sonk seeking a written explanation, Marape added.

Kumul Petroleum has a stake in major energy projects including PNG LNG, a massive natural gas development in which ASX-listed Santos also has an interest.

The board of the PNG NRL team, which will be led by former Canterbury Bulldogs chairman Ray Dib, is yet to meet, having been unveiled only in June. When it does so in coming weeks, it will have six members rather than the seven announced by Marape last month.

Sonk was one of several directors nominated by the PNG government under the terms of the three-way deal with the federal government and the ARLC to deliver an NRL team to Port Moresby.

The businessman did not answer questions sent to him by this masthead this week, but his lawyers said he “denies any and all allegations of improper or unlawful conduct”.

A spokesperson for Minister for Pacific Island Affairs Pat Conroy welcomed Marape’s statement and reiterated that the Australian government had zero tolerance for corruption.

“We also welcome the PM’s reiteration of PNG’s commitment to a ‘world-class NRL team built on trust, transparency and national pride’,” the spokesperson said.

Prime Minister Anthony Albanese, a diehard South Sydney Rabbitohs supporter, pushed for the historic NRL expansion into Australia’s nearest neighbour and backed it with taxpayer dollars to reinforce security relations with PNG and the Pacific, where the government has said China wants to establish a military base.

The high-stakes deployment of rugby league as a geopolitical tool was presented as a landmark achievement in soft diplomacy, but there have been concerns it could be marred by corruption in a region where it is rife.

The controversy that prompted Sonk to stand down will only add weight to such sentiment as the PNG franchise makes plans to enter the competition, initially with the building of a security compound in Port Moresby for players and staff to live in and a high-performance training centre.

Federal opposition foreign affairs spokeswoman Michaelia Cash has called for the government to be transparent about how the bid money is spent.

“It is up to the Albanese government to make sure that the $600 million in Australian taxpayer money they have committed to the PNG NRL team is properly administered. They should seek such assurances from the PNG government,” she said.

ARLC chairman Peter V’landys said on Thursday that he had full confidence that Australian taxpayer funds would be used appropriately “as monies are controlled by the NRL”.

“We will have vigorous internal control measures in place. No payment will be [made] unless we sought the service or product,” he said.

Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.