Account detail confirmation delays royalty payment for LLGs

Business

By DOROTHY MARK
Delays in the confirmation of bank account details have stalled the transfer of royalty payments to local level governments in Madang.
Ramu Nico community affairs manager Albert Tobe said this yesterday following queries raised by LLG presidents in Madang.
It had been a month since Ramu Nico paid its first batch of royalties to landowners, beneficiaries and stakeholders, but the LLGs have not received their share.
Tobe said a letter sent by acting administrator John Bivi to Ramu Nico two weeks ago didn’t specify which LLGs were to be paid directly, and which were to be paid by the provincial government.
He said last week that another letter from Bivi specified which local level governments were to be paid directly, however, the delay was due to the late confirmation of bank account details by the provincial treasury.
Bivi said the Ramu Nico memorandum of agreement clearly stated that only the five impact area LLGs – Bundi, Usino, Gama, Astrolobe Bay and Rai Coast – would be paid directly. The other 14 local level governments would get theirs at the discretion of the provincial government.
Bivi said Ramu Nico had not paid what was owed to the provincial government.
Tobe said once they confirmed the account details, the information would be sent to the Mineral Resources Authority for endorsement before payments were deposited into the bank accounts.
“We have to comply with the law because we are dealing with huge amounts of money,” he said.
“We don’t want to deposit into the wrong accounts.
“Hopefully we should complete all the processes and payments by end of this week.”