The former Minister of Transport, Paul Karalus, told the Commission of Inquiry into the sinking of the Princess Ashika on Saturday, February 27, that he was deeply saddened and embarrassed with the discovery that his report to the King, Prime Minister and the Cabinet that the MV Ashika was in good condition was based on incorrect information.

Paul Karalus gave evidence from 9:30am to about 1:30pm on Saturday afternoon, before the inquiry completed calling its witnesses after over three months of sitting.

The former minister, who began his evidence on February 24, was questioned by Counsel Assisting Manuel Varitimos and cross-examined by counsel participating, including his legal counsel Kahu Afeaki, Tavake Afeaki, Sifa Tu'utafaiva and Soane Foliaki.

The evidence presented before the inquiry had established that the former Minister had never seen any documents to support the conclusion that due diligence was conducted on the vessel and that it was well maintained.

No due diligence

The former minister also agreed with the counsel's submission that from the time the vessel arrived in July to when it sank on August 5 no due diligence was ever conducted, but added that he took it that the former Director of Marine Bill Johnson and SCP Managing Director John Jonesse would complete this process.

"I relied on them . . . but obviously what has transpired is that the vessel was not well maintained, " the former Minister admitted.

"So you relied on Johnson and Jonesse that due diligence was done?" asked Manuel Varitimos.

The former Minister agreed and accepted that he was actively involved in the prospective purchase of the Ashika.

The former Minister was then showed a record of an interview he conducted, which noted his statement that the Ashika was an old ship but it had the latest technology.

"I suggest that you had no information to support this," said the counsel.

The former minister responded that that was what was presented to him by Jonesse.

He also confirmed that it was reported to him that on the delivery voyage from Fiji, the vessel had to return to Suva because the bow ramp was taking in water, the sea was rough and that there were many leaks.

"And you are now aware that one of the reasons that the vessel sank was because water was coming through the bow ramp?" asked counsel assisting.

The former minister agreed and confirmed that he had never seen a Survey Certificate from Fiji, a Dry Dock certificate or the deficiency list issued by the Marine Department under the Ministry of Transport in July 2009.

Deficiency list

"Do you accept that the deficiency list has shown that the vessel was clearly unseaworthy?" asked counsel Varitimos and the witness responded, "yes."

The former minister also confirmed his submission to Cabinet, "that the vessel was surveyed to have carried 390 passengers".

The counsel put to him that he had never seen such document. The witness agreed and said that the figures were relayed to him by Jonesse who said that he obtained them from the Fiji Marine Board.

Worthless

"But it's a worthless document, and you relied on a worthless document?" asked the counsel.

The witness responded yes, and that is what has been transpired at the inquiry, "that the so-called December 2008 survey said to have been issued from the Fiji Marine Board was not a valid document and never issued from Fiji."

"Do you know of anyone being offered improper payments or bribes in the prospective purchase of the Ashika?" asked the counsel and the former Minister of Transport said, no.

On submission from the counsel he accepted that in his former position as Minister under no circumstances should the safety of passengers be compromised. He asserted that he knew it was unlawful to send an unseaworthy ship to sea and that it was of the power of the Ministry of Transport to detain unseaworthy ships.

"So you saw no documents prior to purchase of the Ashika that it was seaworthy and safe?" asked the counsel. The former Minister agreed and added that Government and the Shipping Corporation of Polynesia should have conducted due diligence, and prior to his signing of the contract there was no survey to support due diligence.

Unconditional contract

The former minister accepted that the contract he signed on May 8 for the purchase and sale of the Ashika was unconditional and stated that he was not aware of this at the time he signed it.

"It was clear if you would have read it carefully that the contract was unconditional," said the counsel.

The former minister agreed that the contract should not have been signed without the recommendation of the Government Procurement Committee.

"Had due diligence been conducted the vessel would not have been purchased nor left Fiji," said the counsel, and the witness agreed that it was clear now that the vessel had considerable rust.

"You reported to the Prime Minister that you saw documents but you did not see any prior to purchase?" asked the counsel, and the former minister responded, yes.

"You submitted to the king [in an email] that due diligence had been completed on the technical aspect by the Ministry of Transport?" said the counsel.

The former Minister admitted that he was highly embarrassed with the information that he had provided, in that it had now been proven that they were worthless.

Cause

On being asked on his view of the cause of the disaster, Karalus said it was very clear that those who had the responsibility to carry out due diligence did not do so; but he asserted that he relied on the technical capability.

"I was sadly and badly misled on the condition of the vessel."

He said if the surveyors had put to him that the vessel was not good he would have not let the vessel sail. "This was never brought to my attention and if I were told this I would never have sailed it and would have had it detained."

Paul accepted that the Cabinet and Government should have been more vigorous.

"We have failed," said the former Minister, pointing out to those who had the responsibility.

The former Minister also accepted that Minister of Finance's evidence that it was of his eternal regret that he took Karalus's words. But added that his indication was solely based on the information provided to him by Jonesse.

He accepted that in his role as Minister contributed largely to the cause of the disaster.

Inquiry adjourned

The Royal Commission of Inquiry is now adjourned to March 12 for the final submissions from legal counsel. The report of the Ashika Inquiry findings is to be completed by March 31.