Abandoned company is sub-contractor for hotel

THE company that was awarded K19 million by Asian Development Bank to build the Okapa Road in Eastern Highlands but later had the contract terminated due to lack of equipment is now the sub-contractor to the new five-star casino hotel to be built in Port Moresby, Parliament was told yesterday.
Eastern Highlands Governor Malcolm Kela-Smith, in his supplementary questions to Works Minister Gabriel Kapris, said the minister in his report last year said CMC De Ravena was doing a great job, had all the equipment and the road was progressing very smoothly and he had already given them K2 million for that road.
However, Mr Kela-Smith said there was no equipment on the ground.
“CMC has been dismissed; that’s fair enough.
“Are we going to get a competent subcontractor?
“That road requires about 80% of crushing and we told the minister a long time ago that CMC did not have the equipment to do adequate crushing.
“They cannot get local contractors to do the crushing because they do not have the equipment, you need a large company to do it,” Mr Kela-Smith said.
He also asked whether the bond of K1.8 million could be recovered.
“The minister, who has been standing up for CMC De Ravena, worries me because we now see a new casino coming up in town, of which CMC is the sub-contractor.”

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