The Official Dealings Begin
On 8 January 1997, Tim Spicer had his first meeting with Prime Minister Chan. Spicer succeeded in convincing Chan that Sandline could assist in retaking Bougainville before the upcoming elections. They agreed that Sandline would provide 44 special forces personnel, mainly British, South African and Australian, to fight alongside PNGDF personnel. The US$36 million was never voted upon by the full Cabinet of Parliament, but instead by the secretive National Security Council. Half was to be paid up front, with the other half to follow after completion of the mission. The money came from cutbacks to a number of ministries, including the education and health departments.
Sandline had subcontracted most of its crew for the Bougainville mission through Executive Outcomes, a South African mercenary provider. The first mercenaries arrived on an Air Niugini flight from Singapore on 7 February 1997. After a week, a total of 44 had arrived, 8 from the UK, 5 from Australia and the rest from South Africa.
In the meantime, a series of meetings were undertaken between Deputy Prime Minister Haiveta, Tim Spicer, and several other figures, with regard to buying out CRA's stake in Bougainville Copper Limited, the owner of the Panguna mine, which was at the heart of the Bougainville conflict. On 19 February 1997, Prime Minister Chan mentioned to Australian Foreign Minister Alexander Downer that Papua New Guinea was bringing in mercenaries for "training purposes". Downer condemned the move, and was particularly opposed to their use on Bougainville. On 10 February, the move was leaked to The Australian newspaper.
Read more about this topic: Sandline Affair
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