Jardine Fleming yesterday denied the involvement of a senior executive in negotiating payments for mercenaries hired by the Papua New Guinea Government to quell a rebellion.
The company has launched an investigation into claims that assistant director Rupert McCowan acted as an intermediary between Papua New Guinea officials and professional soldiers working for British-based company Sandline International.
Mr McCowan is alleged to have sought approval from Papua New Guinea banking authorities for the transfer of US$18 million (HK$140 million) to a Hong Kong bank.
James Forrester, executive manager (treasury and international) for the PNG Banking Corporation, claimed Mr McCowan and Vele Iamo, under secretary for Papua New Guinea's Department of Finance, attended his office in Port Moresby in late January to discuss the transfer.
Mr Forrester made the allegations to a Commission of Inquiry called by the Papua New Guinea Government into the hiring of the mercenaries for a final payment of US$36 million.
The mercenaries were to be hired to suppress a long-running rebellion on Bougainville Island so that work could resume on a vast copper mine that had been closed for six years.