By HELEN TARAWA
INVESTIGATION into the controversial Manumanu land transaction of Portion 406 continues as Kumul Consolidated Holdings (KCH) carries out damage-control measures, chairman Paul Nerau says.
Nerau told chairmen and chief executive officers of state-owned entities at a meeting last Thursday that over the last three to four months, KCH had gone through turbulent times. KCH, the state’s shareholding company, was implicated in the Manumanu land deal which resulted in the removal of the ministers for public inverstments and enterprise and the Defence Force and the KCH managing director.
“This particular incident has given rise to a very serious matter within our organisation,” Nerau said.
“The breakdown due governance processes and everything that we had established within IPBC and what’s now the Kumul Consolidated Holdings resulted in serious financial repercussions to the organisation.
“This is an instance where our board has taken drastic measures to save KCH from further financial deterioration. The result of the board’s intervention, our new minister and new MD taking the lead showing the issues exposed and then restoring those systems that have been eroded.
“The full consequence will be realised in time and those implicated will pay personally for the damage caused and we’ll see to it that they face the full force of the law.
“This is the result of what has transpired in the last four to five months. We are now restoring systems that were eroded.”
Nerau said the Ombudsman Commission, Fraud Squad and the prime minister have been involved in all the aspects of bringing those matters to justice.
“While the investigations are yet to be finalised, the lessons learnt are very clear.
“As directors, chairman and CEO, we are placed in positions of trust by organisations and the people of Papua New Guinea and our most basic obligation is to act in the best interest of the organisation against our personal interest,” Nerau said.
By HELEN TARAWA