Intro: The Pacific's notorious fraudster, Noah Musingku, is holed up in Papua New Guinea's Bougainville province, grooming a private army with the help of former military men from Fiji. It's feared they're preparing to take over the island. And that's so alarmed the region that Melanesian leaders have been discussing how to stop these alleged mercenaries, some masquerading as missionaries, sneaking into the province.

Musingku's domain is in the southern part of Bougainville. Here in the rebel stronghold he's set up a kingdom in his village, Tonu. In this exclusive report PNG correspondent, Steve Marshall, negotiates his way into the no-go zone and the so-called Kingdom of Papala.

Approaching checkpoint Music

Steve Marshall,: This is where one world ends and another begins.

Guard: Afternoon.

Guard: Afternoon.

Guard: You all right?

Guard: Yeah.

Steve Marshall: The notorious Morgan Junction is a rugged four hour drive south of the Bougainville capital, Buka. This is the very spot where government authority stops and the rule of a self proclaimed king starts.

It took the ABC four months of secret negotiations to gain access to the rebel zone, which is strictly off limits to outsiders, especially government officials, law enforcers and foreigners.

Inside rebel zone/Men sing Music

Noah Musingku in church Steve Marshall: This is the man the whole of the Pacific is talking about. Noah Musingku has been on the run for swindling millions of dollars from thousands of people. He has 14 aliases. But here in the heart of the rebel zone, he calls himself King Pei II. And this king is on a mission from God.

Noah Musingku, rebel leader: What we are doing here, kingdom building, is a very specialised purpose. Kingdom establishment, establishment of God's kingdom here on earth. It's a very specialised purpose. And God has prepared all of you.

Steve Marshall: Ten years ago, you would have found the king begging on the streets of Port Moresby. That's when God tapped him on the shoulder to set up a high interest pyramid money scheme called U-Vistract.

Noah Musingku: Anyone can't find any answer except through Christ.

Noah on computer

Steve Marshall: It attracted some high profile investors, including PNG politicians and the current President of Bougainville. Musingku even promised a multimillion dollar grant to the Solomon Islands. But the money dried up and authorities shut the scheme down. Musingku managed to seek refuge in the village where he was born, in Tonu.

Musingku interview

Steve Marshall: Mr Musingku, you have been labelled a thief, a con man and a liar. How do you respond to these allegations?

Super: Noah Musingku, Rebel leader

Noah Musingku: It's only because of the different mindset they have, they are coming from a conventional mindset. They are coming from another system. That system they have does not have any solution to the problems we see and face.
Musingku on phone

Noah Musingku: Hello, Peter. Money through. Money through. Thank you.

Steve Marshall: It's here in the heart of the Bougainville jungle where the king claims to be setting up an audacious new banking system.

Noah Musingku: My first and foremost is to pay out my clients, that's what I have to set up. That's why I am setting up all these banks here,

Musingku interview

and in the process of setting up my banks there are other things. Security is also important, that's why we have the royal guards here and bank security there.

Musingku with Meekamui Defence Force members

Steve Marshall: Musingku has surrounded himself with the security of the Meekamui Defence Force. He inherited its control from the old king Francis Ona, the rebel army leader who plunged the island into a ten year civil war over mining and money.

Like Ona, King Pei doesn't recognise the Bougainville government. His army's firepower is a chilling sight for the island's new government whose police force is unarmed and no match for Musingku's army.

Defence Force members eat

Today, Musingku's security force has swelled to 150, with another 400 making their way to Tonu for training. But it's not just the size of the security force that's alarming, it's the men who are conducting the training that's ignited a political firestorm that the Bougainville, PNG and Fijian governments can't extinguish.

News report. Super: Fiji TV. January 27

Fijian newsreader: A diplomatic row is brewing in Papua New Guinea, as officials call for a tripartite meeting to remove five Fijian commandos in Papua New Guinea.

Fijian ‘missionaries’

Pastor: Just worship with us all today. Open your hearts. Open your hearts, brothers.

Steve Marshall: These Fijians claim to be missionaries. But they've been labelled mercenaries for training Musingku's men. They're hardened soldiers who have the battle scars from Iraq and Afghanistan to prove it.

One of them, Leloni Namale, was court-martialled for his part in the coup that overthrew a democratically elected Fijian government in 2000. But are they mercenaries or missionaries? The NDF is armed with plenty of firepower. But the Fijians claim their biggest weapon is the Bible.

Steve Marshall: Have the Fijian soldiers been training the Meekamui

Musingku interview

Defence Force soldiers with arms?

Noah Musingku: They are not receiving any arms training. They are only receiving training in principles. Godly principles. Biblical principles. So they can become good soldiers and live happy lives in their different regions. That's why we train them and then we send them back to their different districts and families.

Steve Marshall: This Fijian fighter is a pastor and baptises every Musingku soldier who completes the training.
Gunter inspects troops None of the Fijians would talk on camera but the commander of the Meekamui Defence Force did.

Gunter interview. Super: Uming Gunter, Rebel Army Commander

Gunter: The defence force we are setting up here is for the security of our people and to defend our country Bougainville as Meekamui.

Steve Marshall: What would happen if the PNG Government tried to come in and arrest him?

Gunter: On that matter, if they come it would be a different story.
Musingku at building site

Noah Musingku: How much weeks more? One or two more weeks?

Builder: Two weeks.

Steve Marshall: Around here Musingku's lauded as the saviour of the Pacific. He promises a flood of riches from the U-Vistract scheme as the Bougainville Government struggles to provide adequate services on the island.

Lishing at bank Peter Lishing: Welcome to the International Bank of Meekamui. My name is Peter Lishing, the Governor of the Central Bank of Meekamui. This is our enquiries counter.

Steve Marshall: This is the headquarters for the king's revolutionary new banking system. The bank offers investors extraordinarily high interest rates on investments. I've just deposited 30 kina. That's around US$10. Now, if their king thinks I'm a good bloke

Marshall at bank

he'll top up my account to the tune of around US$40,000. Once he's done that I can then go and play with the big boys and transfer that money into a treasury bill, earning me a whopping 75 per cent interest per month. So in a year's time I can come back and visit the bank governor here and withdraw myself US$136,000. Isn't that right, Peter?

Peter Lishing: That's right.
Inside bank

Steve Marshall: The king claims he's made more than a trillion dollars on the gold market. But I didn't find those funds in the bank's safe.

Steve Marshall: When will the payouts start to happen? Noah Musingku: This year is really the year that we'll begin to really

Musingku interview

operate and pay out our clients. Last year we were only setting up. This year we'll begin to see more things. It's a greater year of harvest.

Panguna mine Music

Steve Marshall: If you believe Noah Musingku is sitting on a gold mine, he is. He controls the zone that surrounds the defunct but rich Panguna gold and copper mine. It used to provide 48 per cent of PNG's export earnings before it became the centrepiece of war. As long as Musingku controls the no-go zone, he also controls the mine.

Musingku interview

Noah Musingku: We may even decide to look at other options. If 100 per cent of the profits come to our people. In this case more than 90 per cent was going out and only 1 per cent was going to the land owners due to the previous government. But it's the people who decide that. But from my throne I say we already have enough money. Why waste time digging another hole?

Musingku in church

Noah Musingku: If a man cleanses himself from all wicked things he will be used as a special vessel of honour.

Steve Marshall: He may preach posterity for all but the Bougainville government fears a military takeover.

Steve Marshall: Once fully trained, what is your

Musingku interview

intention for the Meekamui Defence Force?

Noah Musingku: It's all geared towards Christian, to become good Christian soldiers. So they are balanced in spirit, soul and body. Not just in physical. So they become good law-abiding citizens.

Musingku surrounded by forces

Steve Marshall: Either way, removing Musingku is no easy task. Authorities risk triggering another civil war on an island that's already seen too much bloodshed.
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