FRAUD SCANDAL ROCKS COUNCIL
PALM ISLAND FINANCE BOSS CHARGED WITH 24 OFFENCES
PALM Island’s mayor and deputy mayor have been named in fraud charges laid on the man responsible for the council’s money.
John Mugambi Mwamba, the deputy chief executive officer and director of financial services for Palm Island Aboriginal Shire Council, was arrested on Friday after an extensive investigation by the Crime and Corruption Commission.
There is no suggestion of any wrongdoing by either the Palm Island mayor or deputy mayor. Mwamba faces 24 charges of fraud with his alleged offences committed between December 2016 and January 2019.
Court documents, viewed by the Townsville Bulletin, revealed Mwamba was accused of dishonestly applying a “banking credit” belonging to the council to the use of Mayor Alf Lacey on two occasions and Deputy Mayor Roy Prior twice.
Queensland Law Society president Bill Potts said a “banking credit” referred to a situation where a bank was directed to pay money into a nominated account.
In fraud matters it may be alleged the direction of those funds has been dishonestly changed.
Mwamba is accused of causing “financial loss to Palm Island Aboriginal Shire Council”.
Thirteen of the fraud charges state, on various dates, that Mwamba “dishonestly applied to his own use a banking credit belonging to Palm Island Aboriginal Shire Council and (Mwamba) was an employee of Palm Island Shire Council”.
It will be alleged on February 26, 2018, and August 9, 2018, Mwamba “dishonestly applied to the use of Alfred James Lacey a banking credit belonging to Palm Island Aboriginal Shire Council and (Mwamba) was an employee of (the council)”.
Mwamba’s charge concerning Mr Prior is alleged to have occurred on October 23, 2017.
Mr Prior said he was “stumped” at the allegation when he was contacted by the Bulletin.
“Oh f*** that,” he said.
“Oh my gosh; I’ll need to go and see the CEO.”
Mr Lacey did not return calls.
Mwamba would make no comment when the Bulletin visited his Annandale home.
Mr Potts said in some circumstances money could wind up in people’s accounts without their knowledge and they could be “completely innocent”.
“However, the CCC will no doubt be looking at whether there are any other parties to the alleged offending,” Mr Potts said.
“That is whether anyone aided, assisted or procured an accused to commit an offence or acted in concert with them to commit the offence.
“The questions no doubt the CCC will be asking is what people knew and when they knew it.”
In addition to Mr Lacey and Mr Prior, several others have been named in the fraud charges against Mwamba.
The Bulletin does not infer any wrongdoing on their part.
Mwamba is accused of dishonestly applying banking credit to Patience Wawira Njue and Kelly Maina Mugambi that belonged to the council.
Mwamba is further accused of dishonestly applying banking credit, belonging to the council, to Palm Island businessman and freight company Reef Logistics operations manager Shane Stratton.
Eleven of Mwamba’s 24 charges relate to alleged fraud committed at the council’s office in Dearness St, Garbutt.
However, it will be alleged Mwamba mixed up his offending locations with several Townsville shopping centres, including Stockland and Willows, listed on the court documents.
The 50-year-old is referred to as simply “John Mugambi” on council documents and his own social media pages.
According to Palm Island Council minutes, he was the acting CEO at the June 2018 budget meeting.
Court documents do not reveal how much money is involved in the alleged fraud.
The maximum penalty for fraud varies on how much money the matter involves, starting at five years jail for less than $30,000 to up to 20 years jail in cases involving more than $100,000.
The Crime and Corruption Commission has stated its investigation remains ongoing.
Mwamba is due to appear in Townsville Magistrates Court on July 26.