By PETER KORUGL
THE PNG University of Technology lost more than K135,000 in 2005 to a US-based company, in what an internal audit report stated was an illegal deal.
And the internal audit investigation into the expenditure recommended for the dismissal of the officer responsible or repay the money to the university.
The university paid the money to a GK Consulting Services, a Minnesota registered company run by an African pastor, to buy three tractors and a dump truck.
The payment of K135,838.43, was made in a cheque (No. 89731) to the company on March 29, 2005, for the tractors – two with slasher and a four-tonne truck.
According to the last Oct 9 report from the internal auditor, the total costs added up to US$41,500.00.
“Apart from all the recommendations, the office of internal audit is very concerned over the loss of K135,838.43.
“This is an offence in accordance with Section 30 of the Public Finance (Control and Audit Act) of 1998 as amended to date and also Section 102 of the Constitution of the Independent Sate of Papua New Guinea,” Eminoni Mabuyai Topio, the internal auditor said in a letter addressed to the acting bursar and copied to the Vice-Chancellor, the pro Vice-Chancellors, registrar, deputy registrar, acting deputy bursar and financial accountant.
Topio continued: “Can the Section 32 officer take drastic action to either dismiss or demote or ask him to recoup the money already been lost by his own negligent?
“Over to your boss”.
GK Consulting Service claims to supply used vehicles and has its address 2499 Rice Street, Suite No.225, St Paul, Minnesota 55113, USA.
President of GK Consulting Service Fr Gabriel Odima yesterday confirmed the deal it had with the university.
“Our program is in the process of opening an office in Lae next month and we will resume all our shipment to PNG.
“We are sorting out the administrative matters with our new local staff in PNG.
“Our staff in Lae will be in contact with the purchasing officer at the university.
“In short, our programme is committed to deliver services to our clients and I don’t think it is necessary to do a story at this point,” Fr Odima said.
Attempts by The National to talk to the Vice-Chancellor also failed and a facsimile has been sent to his office for his comment on the deal.