National Planning and Rural Development Minister Paul Tiensten alleged that officers in this building were asking for 10% commission before processing cheques and payments.
Mr Tiensten said this 10% cheque processing syndicate was operating within the three departments, implying that officers in the departments were involved.
“This building (Vulupindi Haus) is housing a syndicate. If we can break this syndicate (in National Planning) it will roll over to other two departments (Finance and Treasury),” he told reporters at a press conference at the 4th floor of the building, where he himself operates from.
The conference was called to announce the appointment of Joseph Lelang as the new head of the National Planning and Rural Development Department, replacing Mr Valentine Kambori.
Cabinet made the decision last Wednesday to have Mr Lelang as the acting head of the department. Mr Lelang sat beside Mr Tiensten at the conference.
Speaking of the corruption in his and the other two departments, Mr Tiensten said the Government will investigate instances of illegal and unlawful payments to claimants and landowners amounting to millions of kina.
He said a K53 million payment made last year was part of the whole scam where officers of the department were asking for 10% for processing the cheques.
This payment defied a court order and a directive from the Chief Secretary Isaac Lupari.
“This is criminal. I and my Secretary will clean my department up first, then Finance and Treasury. You wouldn’t imagine what was happening here. We are starting to remove the rot that we have with us.”
Mr Tiensten said he has briefed the National Executive Council, and the Chief Secretary was tasked to outline the terms of feference for an investigation team.
He declined to name the alleged officers claiming that the perpetrators would be known after the investigations.
Mr Lelang moved into office yesterday and moved swiftly by informing all staff that he had cancelled all section 32 powers, which gives deputy secretaries powers to approve payments of a certain amount.
Mr Lelang said under the laws, officers from deputy secretary down have certain powers to approve certain amounts of payments from hotel bills up to K10,000.
“I have recalled these powers back as the chief accounting officer until proper controls and delegated powers are in place to control and prevent abuse and misuse of funds.” Mr Lelang said.