K5.7million payment blocked

THE Mineral Resources Development Corporation (MRDC) paid a cheque of over K5 million to a politician, but Government officials acted quickly to stop the politician cashing the cheque at a commercial bank.
Chief Secretary to Government Isaac Lupari confirmed to The National yesterday that the politician, who picked up a cheque for K5,753,622 last week from the MRDC was the same politician, who picked up a K2 million cheque from the Department of National Planning and Monitoring two weeks ago, which he cashed the same day.
Mr Lupari said they acted quickly to prevent the cheque being cashed.
He said after consultations with the Prime Minister, the system of handing cheques to politicians or their cronies would cease.
He said funds for provincial governments from MRDC, Department of Petroleum and Energy and Department of Planning and Implementation would now be transferred directly (by electronic transfer) to the provincial government’s accounts to prevent abuse.
He has written to Thomas Tanasu, acting managing director of MRDC, advising of these changes.
In his letter, he expressed concern about the current arrangements relating to payment to the provincial governments.
“My concern relates to widespread allegations of misuse of these funds thus depriving the people of provision of essential services and development,” he wrote in his June 22 letter.
He said after discussions with the shareholder, the prime minister, all royalties and dividends payments to the provincial government would be paid directly into their bank accounts and not in cheques.
He also advised MRDC to withdraw the cheque of K5,753,622 from the politician and pay it directly to the provincial government back account.
Mr Lupari has also initiated moves to remove politicians sitting as directors on the board of subsidiary landowner companies.

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