http://news.ninemsn.com.au/world/1002056/png-detains-two-australian...

A controversial Papua New Guinea businessman denies that intimidation is behind the detaining of two Australian bankers in Port Moresby but says more arrests may be imminent.

Australians Robin Fleming and John Maddison, senior executives of one of PNG's leading financial institution, Bank South Pacific (BSP), are out on bail after being charged under PNG law with conspiring to defeat the course of justice.

Former government minister Peter Yama last month won 7.6 million kina ($A3 million) in a legal battle against a motor vehicle insurance company but BSP moved to secure the money, claiming Mr Yama had millions in outstanding loans.

Mr Yama, a former police officer and serial litigator, told AAP that BSP, their lawyers and their two employees tried to defraud him because of a vendetta dating back to 2001.

"I was the main man against the sale of the bank in 2001, I called an inquiry against the bank (now BSP)," he said.

"No (it's not intimidation) they are arrested because it's very clear they have defrauded me.

"The law is on my side, I will beat them. I win every case.

"I owe BSP nothing, I told the court, I owe them nothing.

"There's another couple of lawyers, while we are talking a few prominent lawyers will be charged."

Mr Yama said he expected another Australian, James Kruse, to be arrested.

Reports say an arrest warrant has been issued for Mr Kruse, a Deloitte PNG senior accountant.

A DFAT spokesperson said the High Commission in Port Moresby had been in touch with relevant PNG authorities on the matter.

"We will be monitoring the court proceedings closely," the spokesperson said.

It is not the first time individuals in a court case with Mr Yama have ended up in jail.

Last year and in 2008 New Zealand-born lawyer Erik Anderson was twice arrested on fraud charges after BSP paid him from money the bank recouped from Yama's account.

Comment was being sought from BSP's Chief Executive Ian Clyne

17:31 AEST Wed Jan 20 20103 hours 36 minutes agoBy Ilya Gridneff

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