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by Carmel Pilotti

Thousands of Papua New Guineans have signed up to an international multi-level marketing scheme that is being pursued in court in the United States for allegedly defrauding hundreds of thousands of people of over 400 million kina.

As many as 13,000 Papua New Guineans have signed up to the scheme, known as Onpassive.

The Orlando, Florida-based business promises individuals hefty returns from a one-time investment of $US 97 (about 375 kina) and monthly subscription fees. The company claims that investors will share in the profits from the sale of an array of software products that it has developed, and which will be released in the near future.

However, the products have failed to materialize. The U.S. financial regulator, the Securities and Exchange Commission (SEC), last August filed a civil complaint alleging that the business and its owner, Ashraf Mufareh, have since 2018 perpetrated an “illegal pyramid scheme.” 

Onpassive owner, Ashraf Mufareh.
Onpassive owner, Ashraf Mufareh.

Pyramid schemes are a classic form of fraud in which participants are made to pay money up front, and then urged to earn their money back by recruiting new people into the fraud. The small number of people at the “top” of the pyramid can make large amounts of money, while the far greater number of people at the “bottom” lose out.

In Papua New Guinea, the scheme is being led by David Bakau, a former employee of Lloyd’s Bank in Arawa, Bougainville, who became a senior member in the late 1990s and early 2000s of the U-Vistract fraud run by Noah Musingku.

The U-Vistract scam took money from thousands of victims across PNG, Australia, and the Pacific while promising stratospheric returns that never came through. Musingku is still wanted for arrest by PNG authorities, and is currently holed up with loyalists in his home village in Siwai district, Bougainville, where he has declared himself king.

In an interview with Inside PNG, Bakau said he had long ago walked away from Musingku’s scam. But he said that, despite allegations by U.S. authorities, Onpassive was a legitimate company.

“I have no questions about it, because the legal team are handling that,” Bakau said

Onpassive Dubai
Onpassive Dubai.

“We believe in [Onpassive owner Mufareh’s] integrity,” he added. “I followed him in 2019 when the company was barely nothing, and they’ve basically built and I’ve seen everything developed from there.”

Bakau told Inside PNG that he had not yet made any money from Onpassive, but stands to make a 25 percent commission on each 375 kina sign-up fee paid by the scheme’s PNG investors when Onpassive’s software finally launches. He said an issue with data migration has temporarily delayed the release of the software products, which are touted as being part of an integrated artificial intelligence ecosystem that will replace platforms like Google, Zoom, and Facebook.

However, disgruntled former scheme members say such delays are simply part of the alleged scam.

U.S. regulators have alleged that Mufareh and his wife have instead used the money on personal expenses including online retail purchases, upscale dining, TV subscriptions, groceries, salon and spa visits, and the purchasing of stocks.

Bakau said he is unphased. “In every business, there’s a risk,” Bakau said. “Nobody owes anybody. So Ash [Mufareh] doesn’t owe us, we don’t owe him anything”, he said.

Onpassive and Ash Mufareh did not respond to questions.

YouTube videos and social media postings show that Onpassive’s network has targeted PNG since 2019, just a year after the inception of the alleged scam. A closed Facebook group run by senior scheme participants, named “Onpassive Nation -— Papua New Guinea”, has 5,400 members.

Reporters from Inside PNG contacted 10 to 15 Papua New Guineans who have participated in the scheme or have been drawn in by others, but all refused to speak on the record or simply did not respond.

According to the U.S. SEC’s 2023 complaint, as of March last year, Onpassive had received over $US108 million from 800,000 investors around the world.


Locals walk by buildings left abandoned by a subsidiary of Rio Tinto at the Panguna mine site.
Locals walk by buildings left abandoned by a subsidiary of Rio Tinto at the Panguna mine site. [[PHOTO: Aubrey Belford/OCCRP]]
Bougainville - Martin Miriori, the primary litigant in the class action lawsuit.
Martin Miriori, the primary litigant in the class action lawsuit. [[PHOTO: Aubrey Belford/OCCRP]]


View of the tailings located downstream of the Panguna mine
View of the tailings located downstream of the Panguna mine.[[PHOTO: Aubrey Belford/OCCRP]]
An aerial view of the abandoned Panguna mine pit.
An aerial view of the abandoned Panguna mine pit.[[PHOTO: Aubrey Belford/OCCRP]]


 © OCCRP (Inside PNG is a partner center of OCCRP)

Aerial view of the Island of Niue. [[Photo: By NASA]]
Niue dancers with faces painted black at Pasifika festival.
Niuean Dancing; [[Photo: By Rick Rowland]]
Niue Trust Logo
NOW Trust Logo. [[Photo: By Niue Ocean Wide]]
JinNam Hopotoa, Project Communications Officer with NOW Trust makes a presentation on the Niue Ocean Wide Concept.
JinNam Hopotoa, Project Communications Officer with NOW Trust makes a presentation on the Niue Ocean Wide Concept, during PALM 10 event in Tokyo, Japan. [[Photo: Sincha Dimara/InsidePNG]]
Sasakawa Peace Foundation Building - host Pacific Island Nations Week in Japan
Sasakawa Peace Foundation Building – host Pacific Island Nations Week in Japan. [[Photo: By Sincha Dimara/Inside PNG]]

Tim Solly- Sales and Commercial Director, Coca-Cola PNG standing next to an image of Marvel Superhero, Deadpool.
Tim Solly- Sales and Commercial Director, CCA PNG standing next to an image of Marvel Superhero, Deadpool. [[Photo: Allan Terry/Inside PNG]]
Rachel Nainggolan - Senior Brand Manager, CCA PNG wearing a red dress and holding a mic on a red stage at the Coca-Cola PNG premier of Deadpool.
Rachel Nainggolan – Senior Brand Manager, CCA PNG. [[Photo: Allan Terry/InsidePNG]]

A refugee who has been battling with the Office of the Immigrations and Citizenship Authority has filed another court proceeding to summon the Acting Chief Migration Officer (ACMO), Wellington Navasivu to appear in Court for the recent charges laid against him.

Masum Mozumder, a refugee who had laid formal complaints against Navasivu, says he did not drop the charges against the accused.

He said he was shocked to learn from one of the daily newspapers that the Police Commissioner dropped all the charges and cited reasons that the matter is before the court.

Lawyer representing Mozumder, Solomon Wanis said the case before the court between Immigrations and his client was an appeal filed against the Court’s decision to grant his client Refugee status.

He said that appeal, was however withdrawn by the state on Monday (22nd July 2024).

Following the Court’s decision in December 2023 to grant full refugee status to Mozumder, he initiated the process to have the Acting Chief Migration Officer arrested for deprivation of liberty.

On the 9th of July, Navasivu was arrested and charged at the Boroko Police Station for;

– Unlawful Detention

– Attempt to pervert the course of justice and

– Abuse of Office.

He was later released on his “own recognizance” by NCD Metropolitan Superintendent Commander, Silva Sika.

“Own recognizance” is a legal term referring to a type of release that does not require the defendant to post bail and is based on a written promise by the defendant to appear in court when summoned.

It is alleged that Navasivu, as the Deputy Chief Migration Officer in charge of Compliance and Enforcement Division with PNG Immigrations and Citizenship Authority signed a detention notice dated 15th August 2023, for Mozumder, a Bangladeshi refugee to be detained and deported.

His actions allegedly defied court orders that were on foot pending the determination of the December decision.

Following this arrest, Navasivu’s office released a brief explaining that “he signed the approval to detain the Bangladeshi man in compliance with the Migration Act and ICA’s duty to protect our community from non-citizens who can cause harm to our community”. 

Since the arrest of Navasivu, the matter is yet to appear before the committal court in Waigani for arraignment.

Wanis said it seems police have shelved the case, therefore they are asking the court to intervene.

On behalf of his client, he is seeking the court’s orders to compel the Police Commissioner and the Arresting Officer, Mr Philip Otto who are both named as the 2nd and 3rd Defendants respectively, to bring Navasivu (1st Defendant) to face the charges against him.

Mr Wanis pointed out that section 37 (3) of the Constitution states “A person charged with an offence shall, unless the charge is withdrawn, be afforded a fair hearing within a reasonable time, by an independent and impartial court.

He also pointed out Section 55 of the District Court Act, where it states “A person taken into custody for an offence shall be brought before a Court or a Magistrate as soon as practicable after he is taken into custody.

Files were served to all the defendants on Wednesday (25th July, 2024).

DBTI Stakeholders Conference.

JAPAN, Tokyo – Japan is hosting the 10th Pacific Island Leaders Meeting (PALM 10) from July 16th to 18th 2024 in Tokyo.

Following his visit to Indonesia, Prime Minister James Marape and a government delegation are in Japan to join other Pacific Island leaders to discuss regional matters and to strengthen ties.

Crucial on the agenda is the dumping of radioactive waste or ‘treated water’ into the Pacific Ocean.

The Japanese government says the Advanced Liquid Processing System or what it calls, ‘ALPS treated water’ from the Fukushima disaster in 2011 has a radioactive concentration far below regulatory standards and views this as safe.

While Human Rights groups and NGOs have voiced concerns on Fukushima, the Japanese Government has been explaining to the international community based on scientific evidence from the International Atomic Energy Agency (IAEA) that it will ensure the nuclear treated waste will not cause harm to humans and the environment.

A major earthquake and tsunami occurred at Fukushima in 2011 destroying the nuclear power station.

Thirteen years on, the reconstruction of Fukushima is ongoing. Japanese citizens live normal in some parts of Fukushima while there are fewer restricted areas. This is essential for the decommissioning of the site and reconstruction of Fukushima.

Earlier in the evening (16th July 2024), Prime Minister James Marape, met with Japan’s Prime Minister, Kashida Fumio ahead of PALM 10.

Both leaders also discussed the ALPS treated water in which Prime Minister Marape again expressed his confidence in Japan’s measures to secure it.

The Japanese Prime Minister also extended his condolences to PNG for those whose lives were affected by the recent landslide in May and stated his wish to further strengthen bilateral relations towards Japan-Papua New Guinea 50th anniversary of the establishment of diplomatic relations.

He expressed gratitude to PNG for ensuring stable access for Japanese fishing vessels in PNG waters, and conveyed the country’s decision to provide a fishery research vessel as well as fishery equipment.

Heads of 14 Pacific Island nations are in Tokyo for PALM 10, including Cook Islands Prime Minister Mark Brown, who is head of the Pacific Island forum.

He conveyed the forum’s collective views on bilateral relations with Japan, in particular the Blue Pacific 2050 strategy. He called for peace and security in the region to safeguard the ocean, lands and common heritage.

Palm or Pacific Island Leaders Meeting is hosted every three years and is the pillar of Japan’s foreign policy with Pacific Island countries.

The first PALM was hosted in 1997.

The Samarai-Murua District Development Authority is the 3rd DDA to sign an agreement with Mama Bank to facilitate all payments of its tertiary assistance program.

The arrangement is to ensure tertiary fees for students sponsored by the districts are paid on time so it does not affect their studies.

Samarai-Murua District this year has allocated K1.7 million for school fee assistance.

MP Isi Henry Leonard said while waiting for the DSIP funding to be processed, the bank will assist to pay for all Samarai-Murua students attending tertiary institutions throughout the country and abroad.

Once the DSIP component of that funding is made available, the DDA will release it directly to the bank to reimburse the funds.

Both the bank and the DDA clarified that this is not a loan.

This arrangement is part of plans to establish a Mama Bank branch in the district.

Two other DDA’s that have signed similar agreements with the Mama

bank are Kerowagi District in the Simbu Province and Rigo District in Central.

THE Community Affairs and National Content Conference Expo 2024 brings together resource industry experts, landowners, landowner companies and the business community to connect and discuss issues affecting and impacting communities in Papua New Guinea.

Together with daily scheduled meetings, booths were also set up by participating stakeholders to connect and provide information on their business and products.

One such booth displaying mostly solar lights was the USAID PNG Electrification Partership.

USAID has a five-year program, the USAID-PNG Electrification Partnership (PEP) Activity.

The project works in partnership with PNG Power and other stakeholders to ensure 70 percent of PNG households are connected to electricity by 2030.

Trupla Sola booth set up at CANCONEX.
Kavaea Evara, the Agriculture and Business Specialist answers queries from visitors and explains the Trupla Sola concept. [[Photo//Sincha Dimara, Inside PNG]]


The USAID is a result of 2018 APEC in which the US Government pledged to support PNG achieve its goal.

The project’s technical assistance supports 26 mini grids including 19 with co-funding.

USAID also partners with other major companies such as SANTOS Foundation, local MPs and District Development Authorities to conduct site assessments and pre-feasibility studies, engineering and design, financial modeling and advice among others.

The program is also providing opportunities for resource and energy companies to market their products especially in rural areas where hospitals, health centres and schools need electricity.

Under the Trupla Sola program, USAID is helping communities and MSME groups to buy and market quality-certified solar products.

US Aid’s participation at CANCONEX 2024 is a way of connecting with stakeholders both in the government and private sector to roll out the USAID-PEP program.

The annual event is the flagship of the PNG Chamber of Resources and Energy (PNG CORE). The first CANCONEX event was hosted by the University of Technology in Lae, Morobe Province in 2023.

CANCONEX 2024 was hosted by the University of Papua New Guinea from the 1st to 3rd July 2024.

President of the Autonomous Region of Bougainville, Ishmael Toroama speaking during CANCONEX about Panguna Mine Issues.
President of the Autonomous Region of Bougainville, Ishmael Toroama speaking during CANCONEX. [[Photo: PNG Media]]
Old Trucks at the Panguna Mine.
Panguna Mine. [[Photo//Llane Munau]]
Panguna Mine. [[Photo//Llane Munau]]
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