By ISAAC NICHOLAS
NATIONAL Planning and District Development Minister Paul Tiensten has promised a “major shake-up” to rid the rot in the department as he ordered a full scale investigation into an alleged illegal payout of K53 million in SSG and MoA fund payments.
The minister also said that action would be taken against both the officers of the department as well as the beneficiaries of the money if they were found to have abused the processes in place.
He said this in response to The National’s front page report yesterday which said K53 million was paid out to the FOE Resources Association by National Planning Department in violation of a court order and a top Government directive.
Mr Tiensten said yesterday that the department had to confirm if the K53 million was the accumulation of SSG and MoA funds over several years.
The minister said he also gave instructions last Nov 21 for stop-payment until a review of the guidelines on the use of SSG and MoA funds were completed.
But he said his instructions fell on deaf ears when the department released K13 million late last year.
“We want to establish how the funds were paid out and on whose authority were these funds released,” Mr Tiensten said.
The minister said despite millions of kina being paid out, there was nothing on the ground in terms of projects to show for it in Kutubu or other resource areas in the Southern Highlands province.
Mr Tiensten said that investigation would cover all that and he hoped the report would be ready for him by next Wednesday for submission to the National Executive Council for remedial action.
Treasury and Finance Minister Patrick Pruaitch also confirmed an investigation was underway.
He said the investigation was being undertaken by a committee comprising officials from the Departments of Treasury and Finance with the view to taking disciplinary action and to recover the money.
“The Government had been made aware of these payments and expects the investigating team to
produce a report on its findings so that appropriate action can be taken to deal with the matter,” he said in a separate statement.
Mr Pruaitch added that the investigation was an internal Government action.