Inquiry discovers many trust accounts in army

THE PNG Defence Force Board of Inquiry looking into the escape of fugitive Julian Moti to the Solomon Islands on Oct 10 last year; yesterday told the Defence Secretary to hasten and legalise all Defence Force Trust Accounts, currently operated by the force’s different units.
Defence Secretary Frederick Punangi was told that as the “chief accounting officer”, he should ensure this was done to enable these existing accounts to comply with the Government’s Public Financial (Management) Act.
The inquiry under its terms of reference (TOR) is also expected to look into the mismanagement or otherwise of all defence force accounts.
Yesterday, the Defence Force Board of Inquiry chairman Justice Gibbs Salika told Mr Punangi that evidence brought before the board showed that there were many existing trust accounts in operation.
He was told that evidences also showed that operations of these accounts were illegal and often not audited on a regular basis and were therefore bound to be mismanaged.
The board of inquiry made particular reference to the trust account for the Air Transport Wing (ATW) from which funds may have been accessed to buy fuel to fly the CASA that spirited Julian Moti and his two companions to Munda in Solomon Islands.
The evidence given by personnel from the ATW showed that the existence of this trust account was necessary to ensure effective operational maintenance of the assets within ATW.
The inquiry told Mr Punangi that evidence from the ATW personnel, who came before the inquiry, showed that money allocated to ATW was only K1.2 million annually. But they said their unit needed K20 million to ensure effective operations of the ATW and to upgrade aircraft and its personnel working there to meet international safety standards and requirements.
 

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