After coming to power in mid-1994, Prime Minister Chan made repeated attempts to resolve the Bougainville conflict by diplomatic means.
These were ultimately unsuccessful, due to the repeated failure of Bougainvillean leaders Francis Ona, Sam Kauona and Joseph Kabui to arrive at scheduled peace talks.
Chan's defence minister, Mathias Ijape, requested logistical assistance from Australia and New Zealand, in preparation for an assault on the island.
Spicer attempted to persuade the head of the Papua New Guinea Defence Forces (PNGDF), Jerry Singirok, to support the purchase of a package of military equipment that he had previously discussed with Ijape.
Singirok dismissed the idea, and concentrated on proceeding with a planned assault on the island, codenamed "Operation High Speed II".
The immediate public stir in Australia was larger than Chan had expected.The international furor also hardened the dislike that Jerry Singirok had for the Sandline deal.
Jonathan O'ata and Peti Lafanama wanted to consolidate a military-NGO civil protest against the Chan-Haiveta decision to engage the Sandline mercenaries.
Chan refused to resign, and the same day, sacked Singirok as Commander of the PNGDF, replacing him with controversial Colonel Alfred Aikung.
The weapons, including Mil Mi-24 helicopter gunships, piston engined light aircraft, military small arms and 600 crates of ammunition,[2] were shipped in an Antonov An-124 Ruslan giant plane.
Australian diplomats and defence and intelligence chiefs had been involved in secret negotiations for days with Sandline and the governments of PNG and Thailand before agreeing to accept the weapons for storage in Australia.
The Antonov was allowed to fly to Tindal RAAF base, near Katherine, Northern Territory,[3] until the government of PNG arranged for the materiel to be returned to Sandline.
[4] The two attack helicopters remained in storage at RAAF Base Tindal until 2016, when they were buried at the Shoal Bay Landfill site near Darwin due to their dilapidated condition and possible contamination, for example with asbestos, and the cost of shipping them anywhere.
The soldiers at the central Murray Barracks began to disobey orders, and police units had to be flown in from outside of the capital, Port Moresby.
The situation grew darker for Chan when Governor-General, Sir Wiwa Korowi, took out a newspaper advertisement that also accused the government of widespread corruption.
The Australian government sent emissaries to Port Moresby, and threatened to withdraw financial aid altogether if the Sandline deal was not cancelled.
On 21 March, all Sandline's personnel, with the exception of Tim Spicer, who remained to give evidence to the enquiry, were withdrawn from Papua New Guinea.
The next session of Parliament began on 25 March, and Bill Skate, then Governor of Port Moresby, was ready to bring forth a motion calling on Chan to resign.
Inside, Sir Michael Somare amended Skate's motion, so it only called upon Chan to step down for the period of the inquiry.
Enuma attempted to order the soldiers back to barracks and the crowds to disperse, but they remained until Parliament began sitting again the following morning.
Under Skate, the peace process continued, and within a year after the Sandline affair, a treaty was in place, which as of 2004[update], remains intact.