Land payment probed

By GYNNIE KERO
PRIME Minister Peter O’Neill has told Parliament that Cabinet “has no visibility of the transaction” in which land was bought by the Kumul Consolidated Holdings to relocate the naval base to Central.
O’Neill said it was a Government decision to relocate the naval base to allow the redevelopment of the central business district.
However, he said he became aware when the Kumul Consolidated Holdings (KCH) chairman (Paul Nerau) raised a concern over the large amounts coming out from the company.
Kavieng MP Ben Micah told Parliament that the K46.6 million payment by KCH for the land at Manumanu in Central was fraudulent.
Micah said he could not understand how the Government could build a naval base 10km inland of Manumanu.
“This money was paid in two installments – on Oct 14 and on Oct 26,” Micah said.
“I understand you (O’Neill) have given instructions to Kina Bank to freeze this account.
“But I know K15 million has already been spent and I know where some of it went. What are you going to do?”
O’Neill said: “I am aware of this transactions that has been taking place.
Our intention was to try relocate the naval base so that we can rebuild the entire new port structure.
“On the transaction itself, I was notified by the chairman of Kumul Consolidated Holdings that he was concerned about large amounts coming out from that company’s account during the Christmas and New Year period.
“This was done outside cabinet’s approval. Cabinet has no visibility on it. I immediately advised the chief secretary that he should write to the banks and put a stop to it while we took stock of what is going on.
“That investigation is going on today, we have frozen the account.
“But the earlier payments has been withdrawn at some stages.”