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K15million in cheques rejected by bank
By JAMES APA GUMUNO
CHEQUES worth K15million in public funds are floating around in Mendi,
Southern Highlands province, after a commercial bank refused to cash the
cheques last week.
The Bank of South Pacific branch in Mendi refused to cash the cheques
because the signatories on the cheques were not sanctioned by the
Finance Department.
Last Friday, the BSP branch in Mendi was filled with people, who wanted
to cash their cheques but they were turned away and told to come back
this week after the issue with the signature was resolved.
It is believed the cheques paid out last week by the Southern Highlands
provincial government was from a K15 million in development levy from
the Moran Oil project earmarked for various impact projects in the
province.
A source in Mendi said many individual claims worth millions of kina
were raised, and questioned whether the provincial tenders board
authorised payments above K100,000 as required by law.
The payments raised eyebrows among community leaders in the province.
Council president of Poroma local level government Nakon Ipe claimed the
Public Finance Management Act and financial regulations and procedures
were not followed, and asked if these were payments to secure political
support for the elections.
He said it was frightening that public funds earmarked for important
projects in the province were diverted and spent in this manner.
A senior public servant working in the province confirmed yesterday
afternoon that cheques were raised and given to individuals “for
services rendered to the provincial government”.
The public servant, who didn’t want to be named, said the bank refused
to cash the cheques last Friday because the signature of new acting
provincial treasurer Kevin Puruno, who replaced Joe Warapio last
Thursday, was not sanctioned by the Finance Department.
He said the cheques were raise and paid out from “internal revenue”
collected by the provincial government to settle its debts and pay for
services provided y individuals and companies.
Attempts to get comments from acting administrator Alphonse Hayabe and
Finance Secretary Gabriel Yer were unsuccessful.
But Southern Highlands Governor Hami Yawari defended the cheque
payments, saying acting administrator Hayabe was only implementing the
2007 budget.
Governor Yawari said the K15 million was budgeted for in the internal
revenue and Mr Hayabe was there to implement the 2007 budget.
He hit back at Mr Ipe, accusing him and former acting administrator
William Powi of spending K40 million without approval and vowed to make
them “answerable” for their actions.
He said one of Mr Hayabe’s task was to print cheques for contractors who
had rendered services, and pay school fees in line with the free
education policy of the province.
 
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